Name of Rural Bank

Audit Program Reviewed By:

Process: Approved By:
Branch/Business Unit: Audit Date:

AUDIT OBJECTIVES:

1. To ascertain compliance to prescribed policies, procedures and controls.

2. To determine whether the existing controls are appropriate and adequately mitigate risks.
3. To evaluate the effectiveness and efficiency of controls.
4. To identify value adding recommendations to improve the processes and controls.
5. To identify more risk/s within the actual processes.

RISK & CONTROL ANALYSIS & AUDIT PROCEDURES:

Risk Control Control Who Preliminary Test of Controls Procedure Time WP Performed Date
Objective Performed Evaluation Frame Ref. By

1.Incorrect or non-recording  Consistency in F E 1. Obtain a copy of

of FFE may lead to booking the amount sent I F subsidiary ledger
misstated and inaccurate by HO-Accounting thru N A/S F print-out of FFE
consolidated financial IOA. A E account from A/S.
report.  Check if all items N C (Note : only above
sent by HO – Accounting C T 5,000 items shall be
are completely booked. I I capitalizable)
A V 2. Check if the balance
L E of FFE account
appearing in the
subsidiary ledger is
consistent with the
balance found in
Branch’s SOC.
2.Posting overstated /  Assigning of F E
understated or unrecorded Bank’s standard useful to I F 1. Obtain a copy of
depreciation for the month individual FFE. N A/S F lapsing schedule as
of bank’s asset may lead to  Officer to A BM/BOO E of audit period from
incorrect financial reporting. check the lapsing schedule N C A/S.
prepared by A/S. C T 2. Observe the assigned
I I useful for each FFE
 A V and take note any
L E inconsistency from
the standard bank’s
useful life.
3. Document any noted
exceptions and
discuss with the
process owner.

3.Improperly handled
branch’s SSU inventory  AS should conduct F E 1. Inquire if A/S is
may invite tempted staff to physical inventory on all I A/S F conducting month-
perform fraudulent acts. SSU every month-end. N F end inventory of
 Noteworthy SSUs A BOO E SSU.
should be kept inside the N C 2. Conduct physical
vault with separate C T count on all SSU
register being I I inventory and
maintained ( i.e. A V compare it with the
passbook, unissued L E per record/register
ATM cards, Cert. of maintained by the
Time Deposit, branch.
checkbook, Official 3. Note also the manner
Receipt, etc...) of safekeeping
especially for the
significant items.
(passbook,ATMcards
checkbook, etc...)
4.Un-updated reconciliation  Reconciliation of the F
of Due to/from account by AS twice a I A/S 1. Ask the copy of
HO/Branches account may month. N Reconciliation report
lead to long outstanding  Report prepared by AS A BM/BOO prepared by AS.
booking of floating items. to be reviewed/checked N (note: twice every
by Officer. C month )
I 2. Observe if
A reconciliation report
L is signed as
reviewed/checked by
officer.