AUDITING

Introduction

Internal control is a process, effected

by an entity's board of directors, management,
and other personnel, designed to provide
reasonable assurance regarding the
achievement of objectives in the following
categories:
 Effectiveness and efficiency of operations
 Reliability of financial reporting
 Compliance with laws and regulations
Key Objectives of Internal Control

The main objective of internal

control is to set up an organizational structure
where there are checks and balances among
departments as part of business process
management and they include:
Reliability
Confirming to Regulations
Avoid Wastage
Safety of Material and Information
Propriety and Reliability
Compliance
Efficiency
Safety and Security
Considerations
 Allied Bank Limited was the first bank to
be established in Pakistan. It started out in
Lahore by the name Australasia Bank before
independence in 1942; was renamed Allied
Bank of Pakistan Limited in 1974 and then
Allied Bank Limited in 2005
In August 2004, because of capital
reconstruction, the Bank’s ownership was
transferred to a consortium comprising
Ibrahim Leasing Limited and Ibrahim Group
 Visa Credit Cards Visa Debit Card
 SWOT Analysis Of Allied Bank

STRENGTH:

 high motivation of employees

 Salaries are very reasonable
 They have wide area network in all over the
Pakistan
 Bank has very strict rules and regulations
WEAKNESSES:

 Advertisement of ABL is not such goods as of

other banks
 Out look of the ABL branches is not attractive
to the people
OPPORTUNITIES:

 The policies of the new government to uplift

the economy and pursue financial sector
reforms are expected to yield positive results in
the banking industry of the country. The ABL
is very well praised to avail promising
opportunities.
THREATS:

 Political influence
 Continuous downfall of the country economy
 New Privates Bank coped with emerging new
Technology of IT
The Internal Control System Over Receipts And
Payments Of ABL

Internal Control Over Receipts:

When cash is received,
it is acknowledge by means of printed receipt
which have a counterfoil or a carbon receipt.
The receipt is consecutively numbered. The
unused receipt are cancelled and are not be
detached from the counterfoil. No blank
counterfoils is accepted. As soon as cash is
received, it is entered in a rough cash book or
dairy.
Internal Control Over Payment:

All cash payments are identified in writing. It

is important that two receipt copies are written and
one of these is given to the person who is paying the
money and the person who is receiving the money
should retain the other copy. The acceptable format
that can be used for dual copy receipts include
printouts from a cash register, written copies and also
receipts that are generated on the computer. Receipts
that are written by hand or generated on the computer
have the detail value of cash , the person’s name who
is paying it, date received, what the payment is for,
the account number and name on the account and also
the person who is receiving the money
 Conclusion
Internal controls are simply good
business practices because it;
 Prevents errors and irregularities from occurring
 Ensures that issues arising from reporting errors
are kept to a minimum and quickly resolved
 Protects employees:
 By clearly outlining tasks and responsibilities;
 By providing checks and balances; and,
 From being accused of misappropriations, errors or
irregularities.
 Recommendation

 Segregation Of Duties
 Reviews By Management
 Reconciliations
 Approvals