Auditing the treasury function
Effective auditing of treasury activity and risks during Covid and beyond.
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 the 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.
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
- robustness of service objectives
- risk management activities with appropriate benchmarks
- appropriateness of current treasury services to stated needs.
Treasury organisation and structure
- advisory/in-house bank
- cost centre/value-added cost centre/profit centre
- segregation of duties
- structure of a typical corporate and bank treasury
- front, middle and back office structures
- beyond the dealing room.
Treasury risks (includes risks in the dealing operation)
- market and credit risks
- risk mapping
- system management.
Dealing with disasters and lessons to be learnt
- Barings, Société Generale, UBS
- audit universe
- treasury jargon
- 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)
- actively reassess audit plan and adapt the audit process.
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.
- explore the duties of the board and management
- Companies Act 2006
- UK Corporate Governance Code
- treasury risk committees/role of ALCO in banks
- treasury performance and how they are measured and reported
- Visibility on meaningful environmental, social and governance (ESG) metrics.
Derivatives (overview and purpose)
- Forwards, options, swaps
- documentation (e.g. ISDAs).
Treasury management systems
- security violations (including cyber fraud)
- audit trail
- capacity and capability
- key interfaces
- disaster recovery and business continuity.
CPE Competency areas covered
- International professional practices framework
- Business processes and project management.
14 CPE points
Member: £1175 + VAT
Non-member: £1390 + VAT