Can you tell us about your bank?

- Tagum Cooperative is one of the largest cooperatives in Mindanao, Philippines

as it is classified by the Cooperative Development Authority (CDA) of the
Philippines as a large cooperative . It is composed of over 117, 000 members as
of June 2015 coming from Tagum City, Davao del Norte and towns and cities
throughout Region XI and in CARAGA region.

Are there risks that you have encountered in your bank?

- Yes, there are risk that we encounter. First on the list is the Credit risk, it is the
probability that a borrower will fail to repay a loan or meet their financial obligations,
leading to potential financial loss for the lender. Second is the Operational risk which
refers to the potential loss a business faces from inadequate processes, systems,
human factors, or external events impacting its daily operations. Third is the, Market risk
which refers to the potential for financial loss due to changes in market conditions, such
as fluctuations in interest rates, exchange rates, and asset prices. And last is the
Liquidity risk is the chance that a financial asset cannot be quickly sold or traded in the
market without affecting its price, potentially leading to losses for the holder.

What are the challenges you faced in auditing a bank?

- Common challenges in auditing banks include assessing complex financial instruments,
verifying the accuracy of large transaction volumes, navigating intricate regulatory
frameworks, and addressing the constantly evolving nature of financial markets and
products. Additionally, understanding and managing inherent risks like credit, market,
and operational risks pose ongoing challenges in bank audits.

How do you successfully resolve the challenges you face in auditing?

- Successfully resolving challenges in auditing a bank involves a combination of thorough
planning, technical expertise, and effective communication.

Is auditing a bank the same as auditing other businesses?

- There are similarities, auditing a bank differs significantly from auditing other businesses
due to the unique nature of banking operations, financial instruments, and regulatory
requirements. While there are shared principles in auditing across industries, the unique
characteristics of banks necessitate specialized knowledge and considerations for
auditors in the financial sector.

Are all financial transactions in the bank system recorded accurately and timely?
- While banks strive for accurate and timely recording of financial transactions, challenges
and errors can still occur. To mitigate these risks, banks implement internal controls,
automated reconciliation processes, and continuous monitoring. Auditors play a crucial
role in independently assessing the effectiveness of these controls and ensuring the
accuracy and reliability of financial reporting.
When choosing a person to audit, what are your requirements and skills that must be adhered
to?
- When selecting an individual to perform an audit, certain requirements and skills are
essential to ensure a thorough and effective audit process. These typically include:
Education and Professional Certification: A strong educational background in
accounting, finance, or a related field is crucial. Professional certifications such as
Certified Public Accountant (CPA), Chartered Accountant (CA), or equivalent are often
preferred. Second, Audit Experience: The auditor should have relevant experience in
auditing, and many more such as, Analytical Skills, communication skills, Problem-
Solving Skills, and ethical conduct.

How can you be sure that you are auditing properly to ensure your client's satisfaction?
- Ensuring client satisfaction in auditing involves a combination of thoroughness, effective
communication, and responsiveness. By consistently applying these practices and
maintaining a client-centric approach, auditors can contribute to a positive client
experience and enhance overall satisfaction with the audit process.