Audi tee:

Audit Period: AW Paper Code:

Auditor Name 1.
and Position:
Date and Sig.

Audit Scope: Over all activities of the Branch performed from October 30, 2021
to January 14, 2023
Audit objectives:
The objective of this audit is to ensure whether the branch’s all activities are
performed in line with the required policies and procedures of the bank, NBE
directives and other pertinent laws and regulations, financial information of
the branch are accurate and reliable, assets are safeguarded, risks are
managed and controls are adequate.
Audit criteria

bank’s policies, procedure and NBE relevant directives and top management
resolutions that direct the day to day activities of the branch will be used as
criteria.

In making the risk assessments, we consider internal control relevant to the branch’s
operation in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an assurance on the effectiveness of the entity’s
internal control. However, we will communicate to you in writing concerning any
significant deficiencies in internal control relevant to the audit of the financial
statements that we have identified during the audit.
 1. Loan and Guarantee summary with sample size

No. of loan Loan to Guarantee Total no.

Total amount Loan to Sample Files per
Branch files Custo customer files (to be
granted staff size Guarante day
(population) mer files audited)
e letters
70% - (9
Tirehas loan file)
Mezgebu 108,653,013.25 and 45%
24 13 0 15 3
Gofa 11 (5 staff 0
branch loan files)

NB: In addition to the above sampled audit and I will check Status of NPL.

2. Number and amount of customers account with sampling size

Account opening audit coverage

Branch Total number of accounts Sample size Coverage

(population)*

901 * 225 25%

Tirehas Mezgebe Gofa
branch Current account- 100%
PP- 100%
Hybrid – 100%
Other accounts – 25%

NB: * Accounts were focused that is opened since October 29, 2021. Total number of accounts opened
during the cutoff period. i.e. all type of accounts opened such as Current, Hybrid, Regular, Women’s,
Children, Non-interest, Golden, Platinum, Silver, Silanchi, Non-resident and FCY accounts and the sample
size described above will randomly selected from respective account types.
3. Major Duties and dates required

S.No Audit area 1

Executed with

1. Audit preparation (pre-engagement) 1

2. Conduct Entrance meeting
3. Physical verification of Cash (cash count, daily limit, insurance)
4. Physical verification and GL of Valuable securities (cheques and CDT) 2 day
5. Suspense item/tracer (Misc-GL)
6. Account opening KYC
7. Account opening file sample based 2 days
8. Loan and guarantee 5 days
9. Daily ticket vouching
10. AML /CFT practice (report completeness and timeless)
11. Fixed asset management
12. Human resource management
2 and ½ days
13. Income and expenses
14. IT related audit
15. General observation
15. Conduct Exit meeting
16. New product/process and deposit mobilization project performance
(i.e silanch and staff evaluation system)
 S.No Audit area Executed with

Total 8 days

4. Audit Program
No. ITEM TO BE CHECKED Date Started End date Remark
1 Pre-Audit
Review permanent file documentation.
Review general files/other related papers
Review latest documents and update permanent Audit file.
Field Work 28/12/2022 28/12/2022
2 Conduct opening conference

Discussion with the bank branch management and understanding the

branch’s profile and its business
3 Physical verification of Cash and related items 28/12/2022 28/12/2022

Note counting & balancing against GL & cash book - Local currency at
vault and ATM, cash book-Foreign currency and Imp rest fund
Dual signature on cash book, blotter and cash box keys management
(such as cash holding limit, safety).
Dual control of vault key, environment of cash room, dollar detector
machine, forgery note identification and reporting practices.

Cash discrepancy report and action (if any)

Existence of Cash indemnity restriction practices on the system ‘‘No
debit’’.
Non adherence to cash retention limit and insurance coverage status
review
Proper handling of key book
,, ,, ,, Rubber stamp
No. ITEM TO BE CHECKED Date Started End date Remark
4 Physical verification of negotiable instruments 28/12/2022 28/12/2022
Count Revenue stamp and Cheque book vs. GL (Handling Cheque,
register (i.e custody and delivery) and agreement with GL.) Undelivered
cheques book & cheque delivery book
Insufficient cheques register book (NSF)
Check whether ATM request/applicant list, receiving practices from HQ
and delivery And on hand list/register, handling practices ATM,
cards/PINs/ are performed according to bank procedure.
 ATM cards & Pins are held under dual control
 Customers sign on register book upon delivery the card
 Returned spoiled or stacked cards are properly recorded on register
book
 ATM under the control of the Br. is neat & clean
5 Suspense items 29/12/2022 29/12/2022

Tracer run up
Identification of long outstanding items
Scrutinizing (Examining) of each case
Prepaid assets (payments) i.e. rent, insurance,
Head office account reconciliation
Examine abnormal balance on trial balance
Copy of supporting documents
6 Documentations & confirmation slip preparation
Branding regarding mission and Vision of the bank
Stationary items handling system
Review Vouching, discrepancy report, follow up and Documentation of
Daily ticket practices.
7 Account Operation (SAVING, CURRENT & CDT A/C OPENING) 30/12/2022 31/12/2022
Verify the handling system of customer image, spaceman signature,
Muday and register book.
Inspect sample of A/c opening KYC related cases (issues)
No. ITEM TO BE CHECKED Date Started End date Remark
Orphan CIF, Unregistered CIF, Pending accounts, Unauthorized CIF
etc.
Closed a/c list, Application & register books with its instruments (i.e
ck, CPO, passbook, gift certificate, CD)
Blocked a/c & its respective letter
- Check the balance of blocked account on tracer
Time deposit certificate file & interest rate computation
AML/CFT reporting practice suspension list etc.
8 Loans 02/11/2022 11/01/2023
Scrutiny of loan files
- Based on loan audit check list
Security lodgement register book
- Pledged and Release list

Interest Recalculation for OD and grace period interest rates. (if any)
Possible fraud in loans Disbursement without proper application
/credit appraisal, beyond discretionary limit, un authorized release of
limit, incorrect valuation of securities, diversion of funds etc.
Checking of Top 5 large loans (10% of total loans)process checking of
select loan cases
 All the multiple facilities of the single borrower
 Re verification of documents
 NPL classification in automated manner
 Principal/interest overdue >90 days
 Loan to collateral ratio>80%
 NPL provisions
 Interest accruals on loans and rates of interest to be charged to be
checked
 Assignment of valid insurance policies
No. ITEM TO BE CHECKED Date Started End date Remark
9 Guarantee 02/11/2022 11/01/2023

Guarantee documents returned, repeated extension of guarantees

Margin, commission collected, reversal of expired guarantees
Critical scrutiny of income accounts
Guarantee Facility limit and extension with approved commission rate
10 Ticket vouching 12/01/2023 13/01/2023
Daily Ticket management
inspect sample daily tickets
Rectification follows up for discrepancies.
11 Fixed asset 12/01/2023 13/01/2023
Existence of fixed asset record
Inventory of fixed asset

Counter checking against the master registered maintained with

HRM&SS department
12 IT Audit 12/01/2023 13/01/2023
Pass word is used on all computers to log in

Computers are protected from physical hazard & If antivirus is loaded

& regularly run by the staff
Money transfer user access status & Password sharing practice

13 HRM related 14/01/2023 14/01/2023

HR establishment Vs. Actual strength

Handling of personal file documentations such as attendance, JD,

training, medical expenses and leave utilization report management
Branch’s leave management against bank system
No. ITEM TO BE CHECKED Date Started End date Remark
14 General Observations

New products activities and performance

Ensure the branch is adequately Guarded

- Gun function
- Attendance & daily report
- Scanned attentively
Copy of the bank’s
- license and branch authorization,
- NBE Permit license,
Commercial trade permission
Working hours display in visible area
Ensure that the banking hall and staff operating area are suitable for
the type of business to be undertaken in the premises housing
- Location
- Comfortable for customer & staff
- Rent expense
Dressing ,customer services,
Proper Ventilation and Circulation of fresh air
Suitable and clean sanitary Service
Sufficient and suitable lighting
Place fire extinguishers in appropriate area and well proper usage
Ensure that all window and glass walls of the building housing the
branch are reinforced with metal grills;
15 Exit Conference 14/01/2023 14/01/2023
Discuss the findings and associated recommendations

Provide management with the opportunity to give their views on, and
ask for clarification of, the observations and recommendations allowing
any misunderstandings to be resolved.
No. ITEM TO BE CHECKED Date Started End date Remark
Agree on possible solutions to the problems.

16 Reporting -

Develop Audit Report (Draft & final) -

Summary report

5. Summary of Audit Time Required:

Expected Number Of Working Days To Be Consumed
Pre–engagement Field plan (engagement time) Reporting
Total Working Days
(at office)
Duration
Total No. of Days 1 8 day 5 days 14 days

Prepared By:-

Name of Auditor: Desalegn Belachew Signature __________________Date: ________________

First reviewer:
Name of Auditor: Arefayne Wodajo Signature __________________Date: ________________

Approved By:- Name: ______________________________________________ (Chief internal audit officer)

Signature______________________ Date: _________________________