Auditing the treasury function

Presented by: Raj Gandhi

Effective auditing of treasury activity, risks and related controls.

Who should attend?

• Internal auditors, group treasurers, treasury managers, controllers, or those on a board of directors
• Those dealing with the review and control of treasury activities in financial institutions, commercial banks, corporate companies, public sector bodies and not-for-profit organisations.

What will I learn?

 Upon completion you’ll be able to:

• effectively plan risk-based treasury audits that add value as well as provide assurance
• gain a deeper understanding of key issues of control failure concerning strategy and operations
• identify early warning signals of potential problems
• understand how to effectively promote best practice and communicate lessons learned.

Course programme 

Overview of treasury fundamentals and the link to value

• treasury remit for alignment with overall business strategy
• design of treasury strategy and policies
• risk implications of analysis and performance reporting
• risk management activities with appropriate benchmarks.

Treasury organisation and structure

• cost centre/value-added cost centre/profit centre
• centralised/decentralised
• advanced/intermediate/elementary
• segregation of duties
• front, middle and back office structures.

Treasury risks (includes risks in the dealing operation)

• human
• operational
• market and credit risks
• risk mapping.

Dealing with disasters and lessons to be learnt

• Barings, Société Generale, UBS

Auditing treasury

• treasury jargon
• methodology
• risk based assurance plans
• terms of reference – quality of internal audit coverage
• evaluating findings and assessing their significance
• value adding audit report (style, structure, information, clarity, language).

Tackling audit challenges

• staff interviews at all levels of management and operations
• critical review of strategy, policy, objectives, procedures and guidelines
• review of treasury organisation
• warning signals and what to look for. 

Derivatives (overview and purpose)

• Forwards, options, swaps
• documentation (e.g. ISDAs). 

Treasury management systems

• audit trail
• capacity and capability
• disaster recovery and business continuity.

CPE Competency areas covered

• International professional practices framework
• Business processes and project management.

14 CPE points