Internal control and internal audit assessment
The internal control and internal audit system in a credit institution or a banking group ensures the effectiveness and efficiency of financial and operational activities in banking and other transactions, asset and liability management, including safeguarding assets and banking risk management.
For years, FBK specialists have assisted credit institutions in developing advanced internal control, enhancing internal audit maturity, and implementing risk-oriented internal control and audit frameworks to strengthen control lines.
FBK evaluates and improves internal control and audit systems of credit organisations to align with Bank of Russia Regulation No. 242-P “On Internal Control in Credit Institutions and Banking Groups” dated 16 December 2003, as well as with best market practices, using Basel Committee guidelines, COSO frameworks, and IPPF standards.
- GAP analysis of regulatory compliance in internal control systems.
- Assessment of internal audit and control processes for compliance with best market practices, Basel Committee, COSO, and IPPF recommendations.
- Evaluation of internal audit integration into risk management.
- Development of risk-oriented approaches for internal control/audit functions.
- Design of methodologies for assurance maps.
- Creation of reporting templates on internal control/audit activities for governance bodies.
- Effectiveness reviews of internal control.
- Effectiveness reviews of the internal audit function.
- Diagnostic report on internal control and audit system status.
- Tailored recommendations to enhance system maturity.
- Regulatory risk mitigation.
- Reduction of the risk of downgrading the Bank of Russia’s assessment of the bank’s internal control indicator (PU5) in accordance with Bank of Russia Ordinance No. 4336-U “On Assessing Banks’ Economic Situation” dated 3 April 2017.
- Better risk management and control line efficiency in line with the nature, scale, and risk profile of the credit institution’s activities.
