Bank Internal Audit School - OAP385


This course provides a systematic and comprehensive process to understand and effectively review banking activities, including commercial and personal products, the key risks involved in retail and corporate banking, private banking, trade finance, investment banking, dealer rooms, and derivatives. The course focuses on the design of suitable internal audit programs and the identification of the related objectives, risks, controls and audit steps for these assignments.


Tuition cost


NASBA Certified CPE

32 Credits


Why you should attend

You should attend because banking structures, processes, products, and compliance requirements are becoming more complex. This course provides a comprehensive and systematic approach to auditing banks effectively.

Who should attend

Internal, External, and Credit Auditors; Audit Directors and Managers; CAEs; Risk Managers

What You'll learn

You will learn how to develop programs, risk assessments, planning, essential testing procedures and reporting. You will learn about many commercial and personal banking products, investments, trading rooms, and money transfer mechanisms.


  • Fundamentals of Internal Auditing (OAG101) or some knowledge of basic audit techniques and familiarity with the financial markets.

How to Audit a Bank:

  • planning
  • materiality
  • risk appetite
  • the risk assessment exercise
  • fraud and money laundering deterrence responsibilities
  • the relationship to external audit
  • home/host regulation
  • branch and representative office audits
  • introduction to the basel accord
  • case study/exercise: preparing an audit planning memorandum

Deposits and Deposit Taking:

  • how are banks funded
  • current accounts
  • deposit accounts
  • retail funding
  • customer identification
  • the customer recording process
  • payments in and out of deposits
  • dormant accounts
  • notice accounts
  • reporting deposits
  • key risk issues within deposits and deposit taking
  • case study/exercise: developing an audit program for deposits and deposit taking

Funds Transmission and Clearing Services:

  • payment mediums
  • bulk paper clearing
  • cash and debit cards
  • credit cards
  • internet banking
  • ATM machines
  • swift and international payments
  • Case Study/Exercise: Developing an audit program for funds transmission and clearing services

Personal Lending:

  • the customer
  • connected lending
  • overdrafts
  • personal loans
  • mortgage lending
  • retail customer analysis
  • credit scoring
  • use of external agencies
  • know your customer
  • the drawdown process
  • reporting personal lending
  • Case Study/Exercise: Developing an audit program for personal lending

Corporate Lending:

  • the customer
  • connected lending
  • the credit application
  • rating agencies
  • project finance
  • structured lending
  • sovereign debt
  • reporting corporate lending
  • Case Study/Exercise: Developing an audit program for corporate lending

Security and Provisioning:

  • introduction
  • fixed charges
  • floating charges
  • guarantees
  • mortgages
  • provisioning
  • Case Study/Exercise: Developing an audit program for security and provisioning

Trade Finance and Finance of Trade:

  • trade finance defined
  • bills of exchange
  • promissory notes
  • export credits
  • factoring and forfeiting
  • invoice discounting
  • Case Study/Exercise: Developing an audit program for trade finance and for finance for trade

Branch Banking:

  • which roles are conducted at branches
  • the nature of the audit work to be conducted
  • reviewing branch records
  • human resources issues
  • compliance issues
  • reporting and management
  • Case Study/Exercise: Developing an audit program for a retail bank branch

Private Banking:

  • the services of a private banker
  • asset management
  • offshore bank accounts
  • politically exposed persons
  • key risks in personal banking
  • Case Study/Exercise: Developing an audit program for private banking

Investment Banking:

  • long-term finance
  • venture capital
  • debt financing
  • underwriting
  • structured finance
  • due diligence processes
  • documentation and liability
  • income generation
  • Case Study/Exercise: Developing an audit program for investment banking

Dealing and the Dealing Room:

  • the difference between the trading book and the banking book
  • the deal process
  • telephone dealing
  • electronic dealing
  • controls and the control environment
  • the BASEL rules on operational risk
  • compliance and general conduct
  • Case Study/Exercise: Developing an audit program for dealing and the dealing room

Foreign Exchange:

  • calculating foreign exchange rates
  • the foreign exchange market
  • the language of foreign exchange
  • spot rates and cross rates
  • systems of accounting
  • international accounting standards
  • principles of valuation
  • Case Study/Exercise: Developing an audit program for foreign exchange

Forward Contracts:

  • calculating forward foreign exchange rates
  • advantages and disadvantages
  • positions and hedging
  • spot and forward transactions
  • principles of valuation
  • forward rate agreements
  • forward – forward contracts
  • international accounting standards
  • Case Study/Exercise: Developing an audit program for forward contracts

Futures and the Futures Market:

  • introduction to financial futures
  • futures exchanges
  • types of futures contracts
  • quotation of futures contracts
  • margin accounting
  • confirmation and control
  • Case Study/Exercise: Developing an audit program for futures and the futures market

Options and the Options Market:

  • introduction to options
  • types of options contract
  • premiums, margin and exercise
  • option terms
  • option payoffs
  • confirmation and control
  • Case Study/Exercise: Developing an audit program for options and the options market

Swaps and the Swaps Market:

  • interest rate swaps
  • currency swaps
  • advantages of swap structures
  • pricing a swap
  • credit risk and collateral
  • ISDA documentation
  • hedging and hedge accounting
  • control and confirmation
  • Case Study/Exercise: Developing an audit program for swaps and the swaps market

Schedule your course

Use the table below to select the time and location that works best for you.

Timezone: Europe/London

October 2021

Oct 4th, 2021-Oct 7th, 2021

ACI Learning is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: