Public sector IDBI Bank has said it has strengthened its internal audit system by initiating a quality assurance audit to make it fall in line with "best practices".
The bank said it has initiated a Quality Assurance Audit (QAA) to further strengthen and enhance its internal audit function and align it with prevailing best practices.
For this purpose, the bank has appointed an external expert who was very much associated with the audit reforms in the PSBs.
The scope of QAAa includes review of the internal audit framework pertaining to policies, processes, procedures, reporting structures, formats of the bank and integration thereof with risk-based supervision.
It will also review of Branch Risk Rating Framework to ensure that various business risk assessment parameters, criticality, risk weightages and audit observations reflect the risk severity of the branches, in terms of business performance, adherence to the laid down procedures, regulatory compliances etc.
Among others, the enhanced audit framework will benchmark, identify and recommend good/successful practices of internal audit, particularly taking cognisance of prevailing practices in the market, IDBI Bank said in a statement.
Assessing compliance with standards for the professional practice of internal audit will also be part of the enhanced system.
"The assignment is expected to be completed by April 2018 and the bank is determined to implement the suggestion of QAA immediately to strengthen and reinforce the internal audit system with the business goals, to ensure the quality of the operations and business," the bank said.
The banks are pressured to improve on their audit systems after the massive Rs 13,000 crore fraud unearthed at country's second largest public sector lender Punjab National Bank (PNB) earlier in February this year.
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