Bank auditing is the procedure of reviewing the services and procedures adopted by banks and other financial institutions. It is a routine procedure that all financial services entities must undergo in order to ensure that they are in compliance with industry standards and jurisdictional regulations.
Specialist accountants, known as bank auditors, have the responsibility of reviewing banks and financial entities. One of their primary duties is to focus on the accuracy, completeness and legitimacy of the bank’s financial activities.
This procedure is similar to that of official auditing reports that companies must file therefore it is not a procedure that should cause alarm for banks requiring an audit. The majority of banks and financial institutions find the bank auditing procedure a strenuous experience; however it is one of the most important procedures that must be completed periodically.