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

<strong>Technical</strong> <strong>Guide</strong> on Internal Audit of Treasury Function in Banks
the dealers profit or loss vis-à-vis the profit or loss as per the general
ledger system to avoid instances of unrecorded transactions.
g) Controls in respect of financial reporting and MIS: A bank’s financial
statements include many exhaustive disclosures with treasury related
disclosures forming a significant portion thereof (such as, concentration
risk for swaps, PV01 disclosures for derivatives, maturity pattern for
investments, forex). The collation of information to be presented in these
disclosures is tedious and requires liaisoning with several treasury subfunctions.
Further, banks also have an exhaustive base of MIS (such as
ALM, concentration exposures, VAR or other measures capturing market
risk, net open positions) presented at the various senior management
committees (such as ALCO, Risk, Board, Investment, Credit).
Contents of an MIS pack or in a bank’s financials have a direct bearing on
the management decision making and users of financial statements. The
internal auditor should include within his scope the controls around
information flow and data integrity for collation and preparation of the
disclosures and MIS reports.
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