Banking Audits & Exceptions Reporting

Banking Audits & Exceptions Reporting​

By: Amit Bhushan Date: 16th Feb. 2018

A News report on some bank related reporting is a precursor. While the questions related to the transactions have been covered. The auditors and their liabilities have not been touched upon and seems to be avoided as no names have been brought up or being asked for by the media. What kind of transaction systems were involved in the processing units involved and how the audit process is conducted. If such audit process is flawed by not mentioning the scope but same audit contract is followed as a practice or some tweaks were done and are similarly done by the auditors on their own. There is need to understand this as in the reported period, a number of audit agencies as well as audit persons would have changed hands and these articles would encourage media to remove their ‘event focus’ spectacles, especially ones trying to attempt a better job of reporting. This is going to be short article as reporting has been improving in the media (commercial is dropped for now).Then off course we have a rather quick report on confiscations with a good report on its value without any question on the methodology of arriving at the value off course.

 

[Swaswati Borpuzari]

Banking audits and exceptions reporting are critical components of the financial services industry, designed to ensure compliance, accuracy, and transparency in financial operations. Audits, which can be internal or external, involve a thorough examination of a bank's financial records, processes, and systems to verify that they adhere to regulatory standards and internal policies. These audits help identify potential discrepancies, vulnerabilities, and areas for improvement, thereby enhancing the overall integrity and reliability of the bank’s operations. Exceptions reporting, on the other hand, is a specialized process used by banks to identify and document transactions or activities that deviate from the norm or established rules. This could include unusual account activities, errors in processing, or non-compliance with regulatory requirements. Effective exceptions reporting not only helps in mitigating risks but also plays a crucial role in fraud detection and prevention. By integrating advanced analytics and technology, such as artificial intelligence and machine learning, banks can enhance their ability to detect and respond to exceptions in real-time, ensuring that issues are addressed promptly and efficiently. This proactive approach not only strengthens the bank’s internal controls but also builds trust with regulators, stakeholders, and customers by demonstrating a commitment to ethical practices and robust governance.