In the World Union of Arab Bankers conference
16/08/2022
In the World Union of Arab Bankers conference
The United Bank discusses the latest mechanisms in “Remote Audit”, and demonstrates its 5 benefits for banks and financial institutions
Cairo : August 16, 2022
The United Bank reviewed the latest mechanisms of “Internal Audit”, internationally known as “Remote Internal Audit”, that was during the conference of the World Union of Arab Bankers, that took place in Sharm El Sheikh, Southern Sinai.
Mohamed El Sabban- Deputy Manager in the United Bank, mentioned in his paper presented under the titled og “Remote Audit” a solution to overcome modern challenges”, saying that technology changed the life of people for better. Using modern technology techniques has replaced the traditional transactions gradually, especially in banking transactions through Fin Tech. The thing that contributes to save time, effort and accomplish high levels of luxury.
El Sabban stated the strategies of modern planning for remote audit process, documentation, field work, and meetings, discussing aspects regarding the institution’s internal audit.
El Sabban highlighted that internal audit has been radically affected by modern technology tools, on both methodology and strategy levels, especially after COVID 19 pandemic. The remote auditing mechanisms have proved to be a safe substitute to traditional methods, especially after worldwide travel restrictions. These circumstances led to conduct regulatory, legal and immediate need- driven audits, in order to ensure sustainable safe alternative.
El Sabban points out 5 main privileges to internal remote audit:
- Flexibility of remote audit as responding to the COVID-19 environment and travel restrictions, and its ability to stay abreast with unforeseen circumstances.
- Remote audit is effective when high volume reviews are required in short time frames.
- The capability to accomplish remote audit with limited budget.
- Improved use of modern technology strengthens documentation and reporting.
- The institution audit burden is mitigated.
El Sabban has outlined 8 creative tools and mechanisms to conduct remote audit which are:
- Planning and preparation:
Its fundamental to define the objective of the audit, and tools and software system that the auditor will use while conducting remote audit. Then, outlining the roles responsibility on site, to pave the way to everyone to plan and achieve the mission successfully.
The auditor should collect all related information before conducting remote audit, from the intranet of the organization, or Shared folder on the bank server, or core banking system, internal process manual, procedures, and the institution chart and regulations. In order to ensure that the auditor is well aware of the sector/ or administration concerned.
The auditor should hold several virtual meetings during the remote audit process. To explain to the auditee, the audit objectives, scopes, methodology and how the process will be carried on, and how the audit results will be communicated. These meetings can be held on the video conference, call conferences, Cisco webex, Microsoft teams, and Zoom. As well as, meeting will be held in order to answer any audit inquiries.
Analyzing data automatically after the internal audit conducts a comprehensive analysis process, including collecting data, data analysis, dis-aggregation, and providing reports all about concerned issues, starting from the main performance indicator to the customers’ attitude.
El Sabban clarifies that the auditor may need some explanations regarding the collected data, or un usual deviations that could appear during the audit process. That’s why S/he arranges web meeting to more understand the reasons of such cases.
As a result of collecting data, the auditor becomes well aware of the function or business under review. That qualifies the auditor to issue internal audit findings, recommendations to enhance the process or mitigate risks arose while reviewing.
El Sabban states that the auditor should pay attention to three main points while making reports:
- Focus on key risks
- Validation of findings
- Documentation of new process
- Follow Up:
He also clarifies that reporting and follow- up for remote audit is not very different from on-site audit. Either a dedicated unit within the internal audit will carry out the follow-up process with the auditee on the agreed target date or the internal audit systems, like “Team Mate or Auto Audit or AI systems”, which will do it automatically and notify the auditor with the progress of the action plan and current status till final closure.
