Bank Internal Audit School - MIS Training

The Global Leader InAudit and Information Security TrainingBank InternalAudit SchoolUnderstanding banking, theassociated risks and how to controltheminternal audit5 DAY COURSE:15 - 19 October 2012LondonCourse DirectorJohn Porter, BA ACAJohn Porter, is a chartered accountant,banker and financial services consultantspecialising in internal audit, with morethan 20 years’experience in these fields.‘The course simplified banking and identifiedthe risks across business functional areas.Dennis Cox has a rich & diversifiedknowledge in all areas of banking. Thediscussions on various topics were enriching’Head of Internal Audit‘Very good coverage of banking risks and avery inspirational teacher’Internal Audit Consultant,PWC‘Very educative and value adding. Dennis isalways willing to assist’Head of Internal Control■ The key elements of modern banking■ Understanding derivatives, hedging and risk■ The impact of payment systems on banking■ The audit of credit and market risk■ The differences between retail and corporate bankingaudits■ Auditing the dealing room■ Auditing transmissions and clearing services■ Understand and audit trade finance and private bankingSave up to 50%with In-House Trainingwww.mistieurope.com/inhouseRegister Online at:www.mistieurope.com/trainingQuoting Code:IA121004-W

Bank InternalAudit SchoolUnderstanding banking, the associatedrisks and how to control themCourse focus and featuresThe financial services industry represents a challenge tointernal auditors – there is the language to understand andthe complexity of the products to deal with.This course is specifically designed to provide internal auditorswith the key skills that they require prior to commencing internalauditing assignments within financial service institutions. Lookingat the various different components of the banking industry, thecourse considers the internal audit approaches that would beappropriate in each case and assists delegates to design suitableinternal audit programmes.Within the course the delegates will address each of the key areasof banking including retail banking, corporate banking, tradefinance, e-banking and derivative activities. By the end of thecourse they will appreciate all of the different areas within a firm,the nature of the audit approach to be adopted and the areaswhere problems tend to arise in practice.Course DirectorJohn Porter, BA ACAJohn Porter, is a chartered accountant, banker and financial servicesconsultant specialising in internal audit, with more than 20 years’experience in these fields. John has held various management positionswithin the internal audit departments of the global financial institutions ABNAMRO, HSBC, American Express and Bank of Bermuda, having gained hisChartered Accountancy qualification (UK ICAEW) with Ernst & Young.His areas of expertise include: The audit of a wide variety of financialproducts and derivatives, including Equities, Bonds/Fixed Income, FX,Corporate Finance, Private Equity/Venture Capital, Asset Management,Insurance, Trust and Credit Cards. (John’s Asset Management experienceincludes audit and account management responsibilities for the LondonbasedInvestment Management Division of HSBC Asset Management,and the fundamental re-engineering of the conduct of this Division inliaison with management and regulators.) The audit of support functionsfor retail banking, investment banking and credit card operations, inparticular Risk Management, Operations/Settlement, Finance, Treasury,Asset & Liability Management, Tax, Human Resources, Legal andCompliance. Underpinning the conduct of product and support functionaudits, supporting the audit process itself, he is an expert in manyaspects of internal audit methodology, including the following:• The risk-based planning process (from set up of the risk-ranked AuditUniverse to monitoring the execution of the Annual Audit Plan againstbudget)• Audit report and issue tracking methodology, the escalation process,and influencing the “tone at the top”• Evaluation of the effectiveness of the audit process• Effective auditing techniques and methodologies• Effective report writing and other communication skills• Knowledge management methodology• Roll out of the Institute of Internal Auditors Professional PracticesFramework• Roll out of a Code of Ethics.John is an Associate of the Institute of Chartered Accountants in England& Wales (ACA) and holds a BA Honours degree in History from BristolUniversity. Based in Amsterdam, he speaks fluent English and is proficientin Dutch.MethodologyA combination of classroom style presentations mixed withinteractive case studies. Internal audit techniques will beconsidered at each stage of the course.Who Should AttendInternal audit staff, external audit staffPrerequisiteSome knowledge of basic audit techniques and also of thefinancial market would be an advantage.Advanced Preparation: NoneTraining Type: Group-LiveLearning Level: IntermediatePrice: GBP £3,145CPEs: 37Telephone:+44 (0)20 7779 8454Email:training@mistieurope.com

AgendaDay One:Monday 15th OctoberHow to audit a bank• Planning• Materiality• Risk appetite• The risk assessment exercise• Fraud and money laundering deterrenceresponsibilities• The relationship to external audit• Home/host regulation• Branch and representative office audits• Introduction to the Basel AccordCase study / exercise: Prepare a audit planningmemorandumDeposits and deposit taking• How are banks funded• Current accounts• Deposit accounts• Retail funding• Customer identification• The customer recording process• Payments in and out of deposits• Dormant accounts• Notice accounts• Reporting deposits• Key risk issues within deposits and deposit takingCase study / exercise: Develop an auditprogramme for deposits and deposit takingFunds transmission andclearing services• Payment mediums• Bulk paper clearing• Cash and debit cards• Credit cards• Internet banking• ATM machines• SWIFT and international paymentsCase study / exercise: Develop an auditprogramme for funds transmission and clearingservicesPersonal lending• The customer• Connected lending• Overdrafts• Personal loans• Mortgage lending• Retail customer analysis• Credit scoring• Use of external agencies• Know your customer• The drawdown process• Reporting personal lendingCase study / exercise: Develop an auditprogramme for personal lendingCorporate lending• The customer• Connected lending• The credit application• Rating agencies• Project finance• Structured lending• Sovereign debt• Reporting corporate lendingCase study/exercise: Develop an auditprogramme for corporate lendingDay Two:Tuesday 16th OctoberBranch banking• What roles are conducted at a branch?• The nature of the audit work to be conducted• Review of branch records• Human resources issues• Compliance issues• Reporting and managementCase study / exercise: Develop an auditprogramme for a retail bank branchSecurity and provisioning• Introduction• Fixed charges• Floating charges• Life policies• Guarantees• Indemnities• Mortgages• ProvisioningCase study / exercise: Develop an auditprogramme for security and provisioningInvestment banking• Long term finance• Venture capital• Debt financing• Underwriting• Structured finance• Due diligence processes• Documentation and liability• Income generationCase study / exercise: Develop an auditprogramme for investment bankingTrade finance and finance oftrade• What is trade finance• Bills of exchange• Promissory notes• Export credits• Factoring and forfeiting• Invoice discountingCase study / exercise: Develop an auditprogramme for trade finance and for finance fortradeDay Three:Wednesday 17th OctoberForeign exchange• Calculation of foreign exchange rates• The foreign exchange market• The language of foreign exchange• Spot rates and cross rates• Systems of accounting• International accounting standards• Principles of valuationCase study / exercise: Develop an auditprogramme for foreign exchangeForward contracts• Calculation of forward foreign exchange rates• Advantages and disadvantages• Positions and hedging• Spot and forward transactions• Principles of valuation• Forward rate agreements• Forward – forward contracts• International accounting standardsCase study / exercise: Develop an auditprogramme for forward contractsDay Four:Thursday 18th OctoberDealing and the dealing room• The difference between thetrading book and the banking book• The deal process• Telephone dealing• Electronic dealing• Controls and the control environment• The Basel rules on operational risk• Compliance and general conductCase study / exercise: Develop an auditprogramme for dealing and the dealing roomFutures and the futures market• Introduction to financial futures• Futures exchanges• Types of futures contracts• Quotation of futures contracts• Margin accounting• Confirmation and controlCase study / exercise: Develop an auditprogramme for futures and the futures marketDay Five:Friday 19th OctoberOptions and the options market• Introduction to options• Types of options contract• Premiums, margin and exercise• Option terms• Option payoffs• Confirmation and controlCase study / exercise: Develop an auditprogramme for options and the options marketSwaps and the swaps market• Interest rate swaps• Currency swaps• Credit derivatives• Weather derivatives• Advantages of swap structures• Pricing a swap• Credit risk and collateral• ISDA documentation• Hedging and hedge accounting• Control and confirmationCase Study/Exercise: Develop an auditprogramme for swaps and the swaps marketPrivate Banking• The services of a private banker• Asset management• Offshore bank accounts• Politically exposed persons• Key risks in personal bankingCase Study/Exercise: Develop an auditprogramme for private bankingRegister Online at:www.mistieurope.com/trainingQuoting Code:IA121004-W

The Global Leader InAudit and Information Security TrainingBank InternalAudit SchoolUnderstanding banking, the associatedrisks and how to control themRegister Online at: www.mistieurope.com/trainingIMPORTANT INFORMATION - YOUR REGISTRATION CODE:IA121004-WPlease ensure you enter your bookingcode when registering and you willbe entered into our monthly prize drawto win £50 Visa CreditLONDON15 - 19 OCTOBER 2012PRICE GBP £3,145+VATPrice includes tuition, course folder with allcourse notes, lunch and refreshments and aprestigious certificate. Delegates are responsiblefor their own accommodation. You can requestan invoice or pay online. Please note, paymentmust be received prior to course start.Travelling To London From Abroad?MIS Training has been accredited by the BAC,making your trip to London easier which shouldmake your visa application process much smoother.We can help with your visa.Email: training@mistieurope.comJoin MIS Training Institute’s LinkedIn GroupSearch - Global Internal Audit ForumWhat can you expect from the group?■■■■■■■Lively debate with other audit professionalsAccess to the latest audit news from across the globeAudit quizzes and questionnairesExclusive monthly blog by our resident Fraud expertWhite papers and articlesTraining and salary surveysExclusive MIS Training offersGroup Booking Discount**2 delegates -5% discount3 delegates -10% discount4 delegates -12% discount5 delegates -15% discount**Available for delegates from one organisation attending the same courseData Protection:Use of your information: The information you provide on this form will be used byEuromoney Institutional Investor PLC and its group companies (“we” or “us”) in relationto your registration for this event. We may also monitor your use of our website(s),including information you post and actions you take, to improve our services to youand track compliance with our terms of use. Except to the extent you indicate yourobjection below, we may also use your data (including data obtained from monitoring)(a) to keep you informed of our products and services; (b) occasionally to allowcompanies outside our group to contact you with details of their products/services. Asan international group, we may transfer your data on a global basis for the purposesindicated above, including to countries which may not provide the same level ofprotection to personal data as within the European Union. By submitting your details,you will be indicating your consent to the use of your data as identified above. Furtherinformation on our use of your personal data is set out in our privacy policy, which isavailable at www.mistieurope.com or can be provided to you separately upon request.Marketing choices: If you object to contact as identified above by telephone ❑, fax ❑,or email ❑, or post ❑, please tick the relevant box. If you do not want us to share yourinformation with other companies ❑ please tick this box.Cancellation Policy:Cancellation or transfer requests must be made in writing (letter or fax) andreach the MIS Training office 30 days before the course commencementdate. A full refund less a £100 administration fee will be given. Delegateswho cancel less than 30 days before the course commencement date, orwho do not attend, are liable to pay the full course fee and no refunds willgranted. If you wish to transfer to a different course within a six monthperiod, you will be invoiced a 25% additional charge to transfer yourregistration and any difference in course prices. You will not incur anyadditional charges if you wish to send a replacement delegate and yourregistration meets the above terms.Accommodation:All training venues will be confirmed 3-4 weeks prior to the course startdate. MIS Training Institute has negotiated special accommodation rates in4 star hotels in central London (Zone 1) for UK courses.VAT:All delegates attending are liable to pay VAT.Overseas delegates can claim a VAT refund underthe European Union (EU) 8th and 13th Directives onall eligible business expenses such as course fees,hotel accommodation, meals, car hireetc., provided you are not registered for VAT in theUK. For more information please visitwww.mistieurope.com/VAT oremail training@mistieurope.com.Printed on paper from a sustainablesource, using vegetable oil based inks