Introduction
The importance of the work of the external
auditors of the need for shareholders in the banking and financial institutions
to determine the safety and accuracy of financial and administrative conditions
in the institutions that contribute to it. So that the external auditors, and
with available their expertise in this area, carrying out on behalf of the
shareholders and is responsible for checking to make sure of the safety of
those situations.
On the basis of this concept, and the
importance of the role played by banks in the economy, and the need to ensure
the safety of its finances and the safety of practices to manage them in order
to avoid the deep effects on the economy, which can lead to poor financial
conditions, it has included the laws relating to the need for an external or
Checker more to control its works in addition to the internal auditor and the
regulatory authority.
First: the
selection and appointment of the external auditor
It is known that one or more external auditor
appointment is the prerogative of the general assemblies of banks, and should
be starting has obtained a license to practice the profession of the concerned
party in the state, and that of the auditors who have been classified by that
side. In the framework of this category, it must be available in the external
auditor who is chosen by the bank qualifications and experience needed to check
on his work and his calculations provided should not be indebted to him, and
that does not have a benefit in it, and not to be a manager or an employee or
employed by a bank or an agent him.
Second:
define the responsibilities of the external auditor
1. the external auditor should be based on his
work on the terms and conditions governing the work of the profession Audit,
and adhere to the standards of his work in the international audit evidence.
2. the external auditor must comply with strict
confidentiality and not to disclose information obtained by virtue of His work
even after the end of his mission in the bank concerned.
3. On the external auditor, and after briefing
the supervisory authority, a report of the General Assembly of the Bank shows
That the review of the work of the bank and has its accounts according to
international standards and review evidence or applicable Out, and the extent
of the financial statements express, in his opinion, fair and sound on its
financial position The balance sheet and results of operations and cash flows
for the year then ended in accordance with the standards International
Accounting or force.
4. On the external auditor that shows in his
(or in a special report) any violations of the provisions of the legislation
and relevant regulations and decisions issued in implementation thereof, as
well as the instructions issued by the monetary authority.
5. should the external auditor to provide the
Board of Directors with a detailed report on any weaknesses In the accounting
and internal control and any other things draws his attention during the audit
process systems.
6. On the external auditor to verify the
authenticity and integrity of the data that was given to him during the audit
process.
Third: the
relationship of the external auditor, supervisory authority
It must obtain the approval of the regulatory
authority prior to the appointment of the external auditor, and the regulatory
authority to provide copies of any reports provided by the Bank in the
framework of the audit mission, which was appointed for it, and any other
reports as may be required by the regulatory authority. And the regulatory authority
the right to get him on any data or clarifications it deems necessary, as it
has the right that the cost or to perform any other tasks deemed necessary in
the bank concerned. Checker and refer to the supervisory authority whenever the
need arises.