INTERNAL AUDIT AND THE UK BANKING SECTOR

The Role Of Internal Audit And The UK Banking Sector

Abstract

It is the paper's intention to acknowledge and estimate how internal auditing and control activities, risk management and other relation manipulate methods act on and/or effect the effectual structuring of the UK's banking sector.

- To very distinctly delineate what internal auditing and control is - what it is all about and its meaning to the effectual running of banking schools in the UK.

- To consider the consequence of internal auditing pursuits to the fresh fiscal critical purpose in the world, mostly in the United Kingdom.

- To be mindful of the inferences of both a control-focused and risk-centred internal auditing system.

- To appraise the meaning of internal auditing in relation to company governance.

- To acknowledge and investigate the prevailing movements that will ultimately act on and consequence internal auditing pursuits in the future, with actual purpose in the UK's banking sector.

- To be competent to draw out expensive resolutions supported on the atop debate thereby alleviating the formulation of feasible and useful recommendations.

Table of Contents

Abstract2

Chapter I - Introduction4

1. Introduction4

2. Statement of the Problem8

3. Aims and Objectives9

3.1. Objectives9

3.2. Key Questions10

Chapter II - Literature Review12

4. Corporate Governance12

4.1. Internal Auditing13

4.2. Internal Auditing Activities14

4.2.1. Financial Reporting15

4.2.2. Safeguarding Assets15

4.2.3. Risk Assessment and Management16

4.3. Code of Ethics17

5. Corporate Governance and Stakeholders18

6. Public Policy and Authoritative Standards21

7. Integrated approach of bank auditing system26

8. Rule-based reasoning29

Chapter III - Methodology32

9. Misstatement Research32

9.1. Research Questions34

9.2. Research Methods34

10. Research Methodology39

10.1. Research Method39

10.2. Site of Study42

10.3. Forms of Research42

10.4. Data Processing and Analysis43

10.5. Interpretation, Biases and Data Protection44

Chapter IV - Discussion and Conclusion46

11. The Role of the Internal Auditors46

11.1. The International Arena47

11.2. The British Experience48

11.3. The Canadian Experience52

11.4. The Australian Experience56

11.5. The Middle East Experience57

11.6. The New Zealand Experience58

11.7. The Chinese Experience59

12. Audit Committee Functions and Structure60

13. Bank Audit Committees64

14. Conclusion69

References72

Bibliography79

The Role Of Internal Audit And The UK Banking Sector

Chapter I - Introduction

1. Introduction

With views to the subject and scandals on company governance practices, Monks and Minow (2008, p. 3) stated:

"Just as population will perpetually be imaginative and combative in bringing ahead new means to make wealth validly, there will be some who will commit that matching ability to performing it against the justice, and there will perpetually be population who are naive or avaricious adequate to plunge for it."  Thus, it only presentations that rip-off artisans would find assorted means and avenues to persuade suckers into establishing fraudulent wealth through divergent tricks or schemes.

Because of these scandals, population all over, all of a swift, have become fascinated in company governance, acknowledging the worth of a controls-focused and risk-centred inside auditing. Internal auditing has perpetually been a very extensive fundamental thought which includes in numerous pursuits, which embraces fiscal accounting, swindle and embezzlement, performances competence, safeguarding of financial gathering assets, and even compliance to guidelines and laws.

With the prevailing fiscal disintegration qualified by economic procedures worldwide, it is truly the banking subdivision that is least changed, bearing ...