Audit - 19. page

Margins held with exchanges / margins held under Credit Support Annex (‘CSA’) : The forward contracts in banks are now a days increasingly being collateralized using Customer Support Annex (CSA) […]

Deal Settlements : The audit procedures include:  Checking whether there exists effective mechanism for settlement of deals on due date and whether deals due for settlement are generated on […]

Customer Complaints As per the Comprehensive Guidelines on Derivatives, while undertaking derivative transactions with or selling structured derivative products to a user, a market-maker should establish internal procedures for handling […]

Underlying document The audit procedures for this aspect include:  Understand the process and policy of the Bank in respect of the underlying documents.  The auditor should ensure that […]

Accounting of transaction in the general ledger The audit procedures for this aspect include:  Checking whether there is a direct hands-off between front end system and the accounting system […]

Position Reconciliation:   The audit procedures include:  Checking whether daily position reconciliations are performed between front office deal positions and back office deal positions by the treasury back office […]

Audit Programming and Procedures In framing the audit program, an auditor needs to take into consideration their findings of the adequacy of controls within the processes as explained in this […]

Product Program and Policy The auditor should obtain the approved product policy and procedures of the Bank relating to foreign exchange and derivative business and review them for adequacy and […]

Customer/User Suitability and Appropriateness Policy The auditor should obtain approved ‘Customer/User Suitability and Appropriateness Policy’ and verify that such policy is in line with the Comprehensive Guidelines on derivatives and […]

Audit Approach While innovative products and ways of trading create new possibilities for earnings for the bank, they also introduce novel and sometimes unfamiliar risks that must be identified and […]