Audit Guidelines

Audit Guidelines

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General provisions 0-1 Audit Guidelines Last updated: 1 January 2008 ... Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077 Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten. Vordr. 1985 (PC) 06.06 Contents 1 Basic principles 2 Specific regulations 2.1 Purpose 2.2 Status 2.3 Duties 3 Entry into force and transitional arrangements ... Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077 Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten. Vordr. 1985 (PC) 06.06 1 Basic principles (1) These guidelines are binding general instructions for the internal audit functions of the Deutsche Bundesbank (referred to hereinafter as “auditors”/“audit division”). They define the purpose, status and duties of the auditors. (2) Auditors at the Deutsche Bundesbank shall adhere to the “Standards for the Professional Practice of Internal Auditing” of the Institute of Internal Auditors (IIA Standards) and the instructions of the Governing Council of the ECB. ...

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Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main
www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077
Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten.
Vordr. 1985
(PC)
06.06
General provisions 0-1
Audit Guidelines
Last updated: 1 January 2008
...
Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main
www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077
Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten.
Vordr. 1985
(PC)
06.06
Contents
1
Basic principles
2
Specific regulations
2.1
Purpose
2.2
Status
2.3
Duties
3
Entry into force and transitional arrangements
...
Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main
www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077
Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten.
Vordr. 1985
(PC)
06.06
1
Basic principles
(1)
These guidelines are binding general instructions for the internal audit functions of the
Deutsche Bundesbank (referred to hereinafter as “auditors”/“audit division”). They define the
purpose, status and duties of the auditors.
(2)
Auditors at the Deutsche Bundesbank shall adhere to the “Standards for the
Professional Practice of Internal Auditing” of the Institute of Internal Auditors (IIA Standards)
and the instructions of the Governing Council of the ECB.
(3)
Furthermore, auditors shall observe the “Minimum requirements for the organisation
of internal auditing of the credit institutions” of the Federal Banking Supervisory Office as
amended up to 17 January 2000.
(4)
The members of staff of the audit division shall act in conformity with the Institute of
Internal Auditors' Code of Ethics for Internal Auditors.
(5)
Compliance with the above-mentioned regulations shall be verified regularly (at least
once within a five-year period) by the external auditor.
(6)
The Head of the Audit Division at the Central Office, acting within these guidelines,
shall specify operational details and the principles appertaining thereto in an audit manual.
...
Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main
www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077
Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten.
Vordr. 1985
(PC)
06.06
2
Specific regulations
2.1
Purpose
(1)
Auditors exercise an independent and objective auditing and advisory function and
support the Executive Board in the performance of its duties and in achieving the defined
aims of the Bank. By applying a systematic audit approach, auditors assess the effectiveness
of the Bank's risk management, its control structure and its processes of governance, and
contribute to their improvement. The duties of the auditors cover all the operational and
business areas of the Bank.
(2)
In doing so, the audit objectives are, in particular, to confirm orderliness, security and
cost-effectiveness. Subject to restrictions resulting from the nature of a given audit
assignment, the audits cover, among other things,
- the observance of statutory regulations and other regulations and contractual agreements
which are binding on the Bank,
-
compliance with the decisions of the Governing Council of the ECB and of the Executive
Board of the Deutsche Bundesbank,
-
compliance with internal rules and regulations,
-
the target-oriented performance of operations and administrative procedures,
-
the accuracy and completeness of stocks,
-
the effectiveness of internal controls and other security measures,
-
the adequacy of staff levels in the work units being audited,
-
the adequacy of IT security,
-
audits by other operational units, and
- rectification and follow-up of audit findings from preceding
audit reports
.
The audits also cover
- t
he correctness and reliability of accounting practices and information derived therefrom,
especially the audits of the annual accounts and cost accounting.
...
Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main
www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077
Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten.
Vordr. 1985
(PC)
06.06
2.2
Status
(1)
In order for auditors to perform their duties effectively and objectively, the
following criteria have to be fulfilled:
- Auditing is functionally and organisationally independent of the organisational unit being
audited. The relevant organisational involvement is regulated by the Organisational Statute
pursuant to section 7 of the Bundesbank Act and relevant decisions of the Executive Board.
- In the performance of their auditing duties (including in respect of defining the scope of the
audit and reporting on the audit findings), auditors shall neither seek nor take instructions
from third parties.
- The Head of the Audit Division at the Central Office is responsible to the Executive Board
concerning the fulfilment of duties, and reports, as a matter of policy, direct to the Board
member with responsibility for internal auditing. The Head of the Audit Division has the
possibility of communicating directly with the Executive Board. If it is necessary for fulfilling
his duties, he will be invited to attend meetings of the Board.
- The auditors' complete and unrestricted right to information and access to all operational
areas are to be ensured in the course of performing their duties. To this end, the auditors
are, without delay, to be provided with the required information, have all necessary
documentation made available to them and to be allowed to inspect all operational and
business procedures. Truthful and complete information is to be given. Instructions and
decisions of the Executive Board, which may be of immediate or indirect relevance to the
auditors, are to be made known to them. Furthermore, all organisational units are under the
obligation to inform the auditors of any identifiable serious shortcomings, of any notable
damage or loss or concrete suspicion of misconduct in their areas. The auditors are to be
informed in good time of any material changes in the internal control system.
- External agencies' access to audit documents is to be authorised by the Head of the Audit
Division at the Central Office – if necessary in a specific instance, after obtaining the
consent of the responsible member of the Executive Board. This restriction does not apply
to access by external auditors.
- The audit division is to be equipped appropriately with staff and material resources.
(2)
In the performance of their auditing duties, the following regulations pertaining to
standards of professional practice shall apply to the auditors:
- They have no authority to issue instructions to the organisational units being audited.
...
Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main
www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077
Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten.
Vordr. 1985
(PC)
06.06
- They should not participate in audits of organisational units to which they belonged within
one year prior to the audit.
- They should not participate in audits where their objectivity might be compromised by
special circumstances (eg audits of an organisational unit within the Bank in which a
spouse, partner, close relative or in-law of the auditor is employed).
- Facts or circumstances which compromise the independence of auditing are to be
reported to the Head of the Audit Division at the Central Office, who will, if necessary,
inform the responsible Board member or the Executive Board.
- They are obliged to exercise particular discretion also within the Bundesbank with regard
to all operations and administrative procedures to which they have become privy during
their auditing activity.
2.3 Duties
The following duties are performed by the audit division:
(1)
It prepares a risk-oriented annual audit plan for the Bank as a whole, which is
approved by the responsible member of the Executive Board in consultation with the
President and covers the following types of audit.
- Audits on behalf of the Governing Council of the ECB, which form part of the annual audit
plan of the Internal Auditors Committee with due regard given to ESCB Audit Policy
- Audits of accounting procedures
- Audits of the operational units at the Central Office and at the Regional Offices
- Audits of the branches
- Audits of the operational and administrative work areas
- Pre-implementation audits
- Auditing of accounts
(2)
It conducts the audits with appropriate auditing resources.
Specifically, this involves
...
Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main
www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077
Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten.
Vordr. 1985
(PC)
06.06
- conducting the audits listed in the annual audit plan; regular scheduled audits of the
operational units, work areas and branches are, as a rule, to be initiated without advance
notice
- conducting audits for a specific purpose on the basis of the general mandate of the
Executive Board
- conducting audits for a specific purpose on behalf of the Governing Council of the ECB or
the President of the ECB in consultation with the President of the Deutsche Bundesbank.
As a matter of principle, a report is to be prepared on every audit. The Head of the Audit
Division at the Central Office will send the audit report to the audited unit via the Executive
Board in line with the area responsibilities assigned by the Board.
(3)
It issues opinions and comments on matters of relevance to the auditing and
advisory activities listed in these guidelines.
(4)
It monitors the rectification and follow-up of audit findings and initiates any necessary
escalation measures.
(5)
It reports regularly – at least once a year – to the Executive Board as part of an
activity report providing information on significant findings and their rectification and follow-
up.
(6)
It coordinates auditing activities with external auditors.
(7)
It introduces auditing methods and continues to develop them. In doing so, it takes
due account of recognised auditing standards and conducts ongoing quality management.
(8)
The Audit Department ensures that its staff members are suitably qualified,
in particular, by planning training that is appropriate to their duties.
Deutsche Bundesbank • Kommunikation • Wilhelm-Epstein-Straße 14 • 60431 Frankfurt am Main
www.bundesbank.de • E-Mail: presse-information@bundesbank.de • Tel.: 069 9566-3511, -3512 • Fax: 069 9566-3077
Bei publizistischer Verwertung wird um die Angabe der Quelle gebeten.
Vordr. 1985
(PC)
06.06
3
Entry into force and transitional arrangements
These guidelines are put into effect by the Executive Board with effect from 1 May 2002.
For 2002, the audit plans approved for the organisational structure as existing up to 30 April
2002 (item 2.3 (1)) will continue to be in force, unless the Head of the Audit Division at the
Central Office, with the approval of the responsible member of the Executive Board, decides
to depart from them. The Head of the Audit Division at the Central Office may make further
transitional arrangements for administrative matters in connection with the audit manual (item
1 (6)), provided such measures are necessary for an orderly continuation of auditing activity.