Our main purpose for the audit planning is:

 To determine priorities and to establish the most cost-effective means of achieving audit
objectives.
 To assist in the direction and control of audit work.
 To help ensure that attention is devoted to critical aspects of audit work.
 To help ensure the available resources are optimally allocated towards critical business areas.
 To assess the impact of the identified risks on the organization’s strategic goas.

Underlying factors considered during the planning for the 2023 activities

Internal audit department objectives:

Our primary objective is to provide an independent assurance to the audit committee of the board, the
managing director and management in order to assist them in carrying out their responsibilities in
regard to maintaining an adequate system of corporate governance, internal control risk management.

Data protection (Civil registration): data protection , 2020 were approved by the parliament on
November 2020. Handling of personal data will be of importance going forward to prevent cases of data
breach which may lead to severe breach from the regulators.

Liquidity is at 21%.

Payment’s systems reconciliations statements

 RTGS/EFT bank and cash

 Swift mobile money
 Clearing pesa link
 Mobile banking creditors
 Pesa link suspense accounts
 M-pesa ankers cheques
 Western union/money gram atm
 ATM/kenswitch western union/money gram
 Agency banking agency banking

Expenditure

 Capital expenditure
 Recurring expenditure
 General expenses
 Financial costs
Income

 Interest income.
 Fees and commissions.
 Non-funded incomes.
 Rental income
 Other incomes
 Foreign gains/loses

Investments

 Treasury bills and bonds

 Fixed deposits in other banks
 Bank subsidiaries (kwft bank assurance agency)

Fixed Assets management

 Acquisition
 Allocation and coding.
 Maintenance.
 Update of user register.
 Depreciation.
 Idle assets.
 Disposal.
 Insurance.

Date: 1/2/2023

Leasehold management

 Registration
 Renewal
 Contracts.
 Monitoring
 Deposits/down payments
 Changes in standards (IFRS 16)

Budget management

Budget monitoring

Financial Reporting

 Completeness
 Accuracy
 Timeliness
 Loan provisions and classifications under IFRS 9
  Suspended Interests
 Verifiability

Records management

 Transmittal and accountability

 Storage filing
 Classification and retention
 Security (environmental and physical)
 Logical access management
 Data privacy and protection control
 Retrieval
 Destruction

Procurement

 Prequalification and management of suppliers

 Tendering
 Acquisition
 Supplier performance evaluation/monitoring
 Disposal
 Outsourced services.

Property management

 Construction.
 Renovations.
 Repairs and maintenance.
 Occupational safety and health standards for bank premises.

Operations: salary loans

 Authenticity of documentation.
 Employer confirmation.
 Management of Buyoffs-reduced portfolio.

Account opening and operations

 KYC guidelines
 Customer static data maintenance
 Customer consent in relation to data privacy and protection regulations.
 Customer risk level classification.
 Bio metric enrollment
 Documentation and filing

Product and sales support

 Product awareness and promotion.

 Documentation and approval.
  Product delivery process.
 Product reconciliation.
 Supplier payment processing.
 Supplier relationship management.
 After sale product support and monitoring.
 Customer feedback on product offering.

Agency banking

 Recruitment and application

 Management and monitoring.
 Regulatory compliance.
 Agency banking licensing.
 Irregular activities
 Reporting.

Loan securities

 Valuation
 Adequacy of collateral values
 Charging/perfection
 Tracking
 Insurance
 Custody
 Access and retrieval
 Discharge

Fraud management

 Identifications.
 Investigations.
 Documentations
 Prosecution and recovery.
 Data protection controls.

ATM CARD and Pin Management

 New cards production and card replacement.

 Card customization.
 SLA management.
 Channel utilization and management.
 Documentation.
 Card printing and insurance.
 Pin management.
 Reconciliations.
  Value for money audit.
 Data protection controls

Clearing:

Outward clearing

 Cheque deposit
 Cheque scanning and data capture.
 Transmission
 Physical cheque
 T24 and clearing generations.
 Outward unpaid cheques.
 Turn-around time
Inward cheque
 Receiving and processing clearing files.
 Technical verification.
 Inward unpaid cheques.

EFT processing

Swift /RTGS processing

Human capital

Hiring of new employees

 Resource needs
 Advertisement, shortlisting and interviewing
 Adherence to data protection regulations.
 Virtual interviews
 Placement
 Reference

Legal

 Security perfection.
 Litigation management
 Leases and contracts
 Fraud investigations

Insurance agency

Systems
  I-pen insurance system implementation.
 BCP.
 Access and security.

Reporting and compliane