Technical Guide on Internal Audit of Treasury ... - CAalley.com

(j)
(k)
(l)
(m)
To verify that any violations are promptly reported and properly dealt
with.
To ensure that reconciliation is being made timely and accurately,
including daily reconciliation of the dealer’s profit and loss to the general
ledger.
To evaluate the adequacy and effectiveness of the internal control
system and to suggest measures for improvement, if any.
To indicate probable risk-prone areas within treasury, based on the
prevailing external economic environment, and to offer views for
safeguarding the interest of the bank.
(n) To aid and facilitate risk based supervision function of the RBI (Pillar 2
of the Basel Accord) in regard to a bank’s treasury/market risk business
areas.
(o)
(p)
(q)
To ensure compliance with the guidelines issued by the RBI, SEBI,
FEMA, FEDAI, etc., and other guidelines issued from time to time.
To verify that interest and dividend income is accounted for fully and
correctly.
To verify that all counterparty confirmations are received.
3. The precise scope of risk-based internal audit of treasury transactions
must be determined by each bank for low, medium, high, very high and
extremely high risk areas. This <strong>Technical</strong> <strong>Guide</strong> contains matter relevant for
domestic compliance only. In case of overseas treasury operations, the RBI
guidelines on the subject and the domicile country requirements will also be
required to be considered.
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