Financial Services Auditing: Navigating The Complexities Of The Financial Industry

Introduction:

The financial services industry is highly regulated and faces unique risks, demanding specialized audit expertise. This comprehensive training course on Financial Services Auditing equips participants with the essential knowledge and skills to effectively audit financial institutions, including banks, insurance companies, investment firms, and other financial entities. Participants will learn how to identify and assess financial risks, evaluate controls, understand regulatory requirements, and conduct audits specific to the financial services sector. This course bridges the gap between general audit practices and the complexities of the financial industry, empowering participants to become valuable assets in ensuring the stability and integrity of financial institutions.

Target Audience:

This course is designed for professionals involved in auditing financial services organizations, including:

• Internal Auditors
• External Auditors
• Compliance Officers
• Risk Managers
• Regulators
• Anyone working in or with financial institutions seeking an audit perspective

Course Objectives:

Upon completion of this Financial Services Auditing training course, participants will be able to:

• Understand the unique risks and regulations within the financial services industry.
• Identify and assess financial risks specific to different financial sectors.
• Evaluate the effectiveness of internal controls in financial institutions.
• Conduct financial services audits using industry best practices and regulatory guidance.
• Develop audit programs and procedures for financial services assessments.
• Understand key regulations and compliance requirements (e.g., Basel Accords, Dodd-Frank Act, Solvency II).
• Assess financial reporting and disclosure practices.
• Evaluate the adequacy of capital and liquidity management.
• Understand the audit considerations for various financial products and services.
• Develop recommendations for improving financial services operations and controls.
• Communicate financial services audit findings effectively to management and regulators.
• Stay up-to-date with the latest trends and challenges in financial services auditing.
• Contribute to a stronger and more stable financial system.
• Enhance their understanding of financial services risk management.
• Become a more valuable and sought-after financial services audit professional.

DURATION

5 Days

COURSE CONTENT

Module 1: Introduction to Financial Services and Risk

• Overview of the financial services industry: key sectors (banking, insurance, investment management, etc.).
• Understanding the unique risks faced by financial institutions: credit risk, market risk, operational risk, regulatory risk, etc.
• The role of auditing in ensuring the safety and soundness of financial institutions.
• Key regulations and regulatory bodies governing the financial services sector.
• Ethical considerations in financial services auditing.

Module 2: Banking Auditing

• Auditing commercial banks: loan portfolios, deposit operations, treasury functions.
• Auditing retail banking activities: consumer lending, mortgage lending, credit cards.
• Auditing investment banking activities: underwriting, mergers and acquisitions, trading.
• Capital adequacy and liquidity management in banks.
• Regulatory compliance for banks (e.g., Basel Accords, Dodd-Frank Act).

Module 3: Insurance Auditing

• Auditing life insurance companies: policy reserves, claims processing, actuarial valuations.
• Auditing property and casualty insurance companies: underwriting, claims reserving, reinsurance.
• Auditing health insurance companies: claims processing, provider networks, risk adjustment.
• Solvency II regulatory framework for insurance companies.
• Financial reporting and disclosure requirements for insurance companies.

Module 4: Investment Management Auditing

• Auditing investment funds: portfolio valuation, fund administration, compliance with investment guidelines.
• Auditing asset management firms: investment strategies, performance measurement, client reporting.
• Auditing brokerage firms: trade execution, client account management, regulatory compliance.
• Auditing private equity and hedge funds: fund structures, valuation methodologies, risk management.
• Regulatory compliance for investment managers (e.g., SEC regulations).

Module 5: Risk Management in Financial Institutions

• Enterprise risk management (ERM) frameworks for financial institutions.
• Credit risk management: loan underwriting, credit scoring, loan loss provisioning.
• Market risk management: value-at-risk, stress testing, hedging strategies.
• Operational risk management: business continuity planning, cybersecurity, fraud prevention.
• Regulatory capital and liquidity requirements.

Module 6: Regulatory Compliance in Financial Services

• Overview of key regulations affecting financial institutions (e.g., Dodd-Frank Act, Basel Accords, GDPR, AML).
• Compliance programs and controls.
• Auditing compliance with regulations.
• Reporting compliance violations.
• Working with regulators.

Module 7: Financial Reporting and Disclosure for Financial Institutions

• Generally Accepted Accounting Principles (GAAP) for financial institutions.
• International Financial Reporting Standards (IFRS) for financial institutions.
• Regulatory reporting requirements for financial institutions.
• Financial statement analysis for financial institutions.
• Auditing financial reporting and disclosures.

Module 8: Technology and Cybersecurity in Financial Services Auditing

• Auditing IT systems and controls in financial institutions.
• Cybersecurity risks and controls in the financial services sector.
• Data privacy and security regulations (e.g., GDPR, CCPA).
• Auditing cloud computing and third-party risk in financial services.
• Emerging technologies and their impact on financial services auditing.

Module 9: Current Issues and Emerging Trends in Financial Services Auditing

• The impact of fintech and digital transformation on financial services auditing.
• Auditing the use of artificial intelligence and machine learning in financial services.
• ESG (Environmental, Social, and Governance) considerations for financial institutions.
• Climate risk and financial stability.
• The future of financial services auditing.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.