Here are some notes about the different types of bank audits:
- Concurrent audit: A concurrent audit is an audit that is conducted at the same time as the bank’s normal operations. This type of audit is typically conducted by a team of auditors who are specially trained to review financial transactions as they occur. Concurrent audits can help to identify and correct errors and irregularities early on, before they have a chance to have a significant impact on the bank’s financial statements.
- Internal audit: An internal audit is an audit that is conducted by the bank’s own staff. Internal audits are typically focused on assessing the effectiveness of the bank’s internal controls. Internal auditors will review the bank’s policies and procedures, as well as its operating systems, to ensure that they are designed to prevent and detect errors and irregularities.
- Statutory audit: A statutory audit is an audit that is conducted by an independent auditor. Statutory audits are required by law in most jurisdictions. The auditor will review the bank’s financial statements and operations to ensure that they are accurate and compliant with applicable laws and regulations.