IMPROVEMENT OF THE MODEL OF USING ANALYTICAL PROCEDURES AT INTERNAL AUDITING OF A BANK

Oksana Dolinska

Abstract


From 2014 the number of banks in Ukraine essentially decreased from 180 to 76 for 01.07.2019. The unstable situation was
traced in the country for this period of time. Liquidation of 104 banks demonstrated that they couldn’t manage their risks and make
correct managerial decisions timely, and also the system of internal control functioned badly. Just this system includes a subdivision
of internal auditing that didn’t cope with timely revelation of inexactitudes, so reasonable recommendations as to managerial
decisions weren’t elaborated. For providing functions of internal auditing of a bank, the subdivision uses auditing procedures. They
include analytical procedures that, in their turn, are principal for attaining aims of an auditing task. The article considers most urgent
questions of using analytical procedures in internal bank auditing. The essence of the definition of “analytical procedures” has been
considered and specified. Analytical procedures have been separated from the composition of auditing ones, and their theoretical
aspect has been analyzed. The classification of methods of analytical procedures has been analyzed for getting auditing evidences.
Analytical procedures consist of methods of internal system estimation and bank financial condition analysis and also analysis of
their business-processes. Advantages and defects of methodical components of analytical procedures have been presented and analyzed.
The stages of an auditing task have been studied. Analytical procedures are considered at three stages of internal auditing:
planning, performing the engagement and resulting, demonstrated through the prism of economic analysis. International standards
of the professional practice of internal auditing that regulate it are considered. Questions of working papers that generalize a result
of using analytical procedures are separated.

Keywords


internal auditing; bank; auditing procedures; analytical procedures; auditing evidences

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References


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DOI: http://dx.doi.org/10.21303/2504-5571.2019.00969



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