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İŞBANK
ANNUAL REPORT 2014
76
AUDIT COMMITTEE’S ASSESSMENTS ON THE OPERATION OF
INTERNAL CONTROL, INTERNAL AUDIT AND RISK MANAGEMENT
SYSTEMS AND ITS ACTIVITIES IN THE REPORTED PERIOD
Internal Audit
The İşbank Board of Inspectors reports to the Board of Directors via Audit Committee and is responsible for the auditing functions. By
adopting ethical principles stated by banking and internal auditing regulations and “International Standards for the Professional Practice
of Internal Auditing”. The İşbank Board of Inspectors audits the activities of Bank’s Head Office divisions (including internal control, risk
management and corporate compliance divisions), domestic and foreign branches and the subsidiaries, in accordance with the Bank’s
mission, strategies and policies, as well as relevant laws and regulations. Furthermore, the Board of Inspectors performs the Bank’s
processes and information systems audits. The Board of Inspectors also carries out preparatory inquiries, fraud examinations and
investigations when necessary.
Having been certified to be in conformance with the international quality standards, the İşbank Board of Inspectors combines the Board’s
fundamental audit experience with advanced technology in a modern, risk-focused approach to perform its duties. The board’s auditing
functions are carried out by on-site inspections as well as remotely by using data mining and fraud detection technologies.
Depending on their content and priority, audit reports are submitted to the Board of Directors, Audit Committee, senior management
and related Head Office divisions. In the meantime, corrective measures taken by the relevant Head Office divisions are monitored by the
Boards of Inspectors. The Board of Directors monitors activities of the Board of Inspectors through monthly reports presented via the Audit
Committee.
During 2014, The Board undertook 510 domestic branches, 2 overseas branches, 5 Head Office divisions and 4 subsidiaries audits. In
addition to their audit-related activities, members of the İşbank Board of Inspectors also undertake duties on major projects that the Bank is
involved in.
Banking processes and IT audits are conducted annually by the members of The Board of Inspectors in accordance with the “Regulation on
Bank Information Systems and Banking Processes Audit to be Performed by External Audit Institutions” that is published by Turkish Banking
Regulation and Supervision Agency. Both consolidated and unconsolidated financial statements’ preparation process have been evaluated
and validated during the financial reporting process audit.
According to the results of the banking processes and IT audits conducted in 2014, as of 31 December, 2014 there has been,
- no material weakness in the internal controls over the main banking processes ensuring the Bank to perform efficiently, reliably and
continuously,
- no material finding about the integrity, availability, consistency and reliability of the data reported in consolidated and unconsolidated
financial statements.
With the help of the risk focused audit plan, The Board audited a considerable portion of İşbank’s entire credit portfolio in 2014. The remote
auditing activities of the Board has enabled the Bank to monitor the major risks especially in loans and human resources regularly and has
given the Bank the ability to counteract before the risks increase further.