About Us | Services | Daily Rates Laws & Regulations |  Investment |  Publications Currency | Payment and Settlement Systems  | Contact Us



Role

Strategy and Scope

Audit Activities

Approach

Right of Access

Relationship With External Auditors

Tools Used

Contact Numbers

 





Our Role:

To achieve this mission, Internal Audit Department uses an integrated strategy that focuses on areas of high risks and on partnering with the Heads of other departments to achieve the Central Bank of Oman’s business objectives.

The activities of the Internal Audit function are overseen by the Audit Committee of Board of Governors of CBO, headed by H.E. The Deputy Chairman of the Board of Governors. Senior Manager – Internal Audit Department is required to report to the Audit Committee on the activities of Internal Audit and assure the Audit Committee on the overall effectiveness of the control environment.

UP



Strategy and Scope:

The scope of the Internal Audit Department has been covered under a Charter approved by the Audit Committee. The corner stone of our audit services is the assurance we provide by conducting audits and reviews to assess the effectiveness of risk management, controls and corporate governance.

The Audit Committee and Executive Management relies on our assertion that the assets of CBO are adequately safeguarded, information is reported accurately, policies and procedures are being complied with and best practices are being shared and followed.

In addition to these traditional services, Internal Audit Department provides various “preventive” audit services aimed at identifying and correcting problems before they occur. Services such as pre-audits, participation in various committees, task forces, business risk consultation, control self assessment facilitation and control awareness education enable us to proactively leverage our subject matter expertise throughout CBO and also to target areas of greatest potential risk.

By doing so, IAD intensifies positive influence on the system of controls and provide greater assistance to management in ensuring a cost effective control environment throughout Central Bank of Oman.

The ultimate goal is to build a mindset of continuous risk management utilizing cost effective controls to help achieve the Banks’ objectives by all the departments of CBO.

UP


Audit Activities:

Our Assurance Services

Regular Audits (Functional and Operational) – Internal Auditing evaluates the internal control environment of operational areas, processes and systems on a periodic basis to provide an independent and objective appraisal of their related internal controls. This also includes pre-audits of important payments, witnessing the incineration, opening, packing and unpacking of currency notes etc.

System Reviews - This type of limited scope review is typically initiated by the Top Management, other concerned departments of CBO and also ourselves over a particular aspect of any department’s performance and / or operations. It is intended to keep management informed over the status of internal controls in selected areas, processes or systems on a current basis.

Information Systems Audit – This type of assurance service evaluates the adequacy of controls in computer systems to safeguard information assets, maintain data integrity and achieve system efficiency and effectiveness.

Special Audits – Unscheduled forensic investigations are performed due to possible irregular activities that are beyond the normal scope of regular audits and special reviews.


Consulting Services

Business Risk and Internal Control Consulting- In CBO’s dynamic business environment risks are constantly changing, often making long-standing controls ineffective and or redundant. Institution of controls is the responsibility of the Management. Internal Audit can assist Management by providing experienced risk and control subject matter experts to provide consultation on risk identification and control alternatives.


Task Force Memberships - As member of various taskforces, Internal Audit is expected to provide consultancy or advisory services or to carry out special tasks. Providing such services will not affect the Internal Audit Department’s right to audit or ability to express a view on these areas subsequently where deemed necessary.

Provision of such services and whether such services will impact the Internal Audit Department’s independence and objectivity will be left to the decision of Board of Governors.


Developmental Assignments – Departments can send employees to Internal Audit to develop their understanding of risks, controls and gain exposure to operations throughout the Bank. Internal Audit also assigns risk and control experts to other departments to assist management in establishing or enhancing their vital risk management and control processes.


Control Self-Assessment Facilitation – Proactive organizations recognize the importance of identifying the risks that threaten the achievement of their business objectives and ensuring that controls are effectively mitigating these risks. Control Self Assessment (CSA) is a process in which Internal Audit can assist departments in risk identification and control self-evaluation. It includes facilitating workshops for other department’s personnel who are most familiar with the activities under review. Business risk / control knowledge gained from these workshops is then used by the group of client department personnel to determine the effectiveness of existing controls and make recommendation where deemed necessary to the management. This process can assist departmental management by identifying internal control improvements, thereby resulting in fewer control weaknesses in future audits.


UP




Our Approach

Internal Audit department functions under the Audit Charter issued by the Chairman Audit Committee H.E., The Deputy Chairman. The Audit Committee (which is a sub committee of Board of Governors of CBO) oversees the function of Internal Audit. The audits are carried out in compliance with risk based audit procedure manual approved by Audit Committee. All the auditors in Internal Audit department are bound by the code of ethics to serve the organization. The performance of the auditors is evaluated on the basis of Key Performance Indicators, identified at the beginning of the year.

Except for special audits, where malpractice is suspected, the Audit Committee approves a plan of audit assignments at the beginning of each audit year. The timing, duration, objective and scope of the audit assignments are pre-finalized as part of this Audit plan. The concerned departmental management is informed of the audit assignments to be started for their departments, barring the ones, which require a surprise element in it. This helps the department managers to budget their time and resources for the audit.

Fieldwork is carried out on the basis of approved audit programmes, which are amended if necessary  to keep the audit in line with the recent changes, (including the risk category changes) into consideration. An informal report is submitted to the auditee to communicate Internal Audit’s understanding of the issues mentioned within and also for their comments to be incorporated in the report to make it a formal one. Discussions with the auditees forms an essential part of our audit process throughout the audit activity.

The formal report is then forwarded to the Audit Committee for the views of the Committee.

After receiving the directives of the Audit Committee, the copy of the report is then sent to the auditee department and copy of excerpts are marked to the relevant departments in line with the directives.

Then a summary is prepared for the follow-up purpose and circulated to the relevant departments for the status of implementation of the directives. Once the feedback of the concerned department/s is received then the follow-up report is submitted to the Audit Committee and also a copy is marked to H.E. The Executive President for information.



Up



Right of Access:



In terms of our audit charter, Internal Audit has a right of direct access to and will communicate with any member of the staff relevant to the performance of the audits. Internal Audit is authorized to examine any activity or entity in the Bank and has access, during execution of their normal duties, to any records, files or data of the Bank both manual or computerized including management information and the minutes of all consultative and decision making committees / task forces and minutes and resolutions of the minutes of the Board of Governors of Central Bank of Oman including its suppliers and customers.



Up






Relationship With External Auditors:



The role of external auditors is to verify that the financial statements of the Central Bank of Oman presents a true and fair view of the Bank’s financial position. It is a statutory requirement that an external and independent firm of accountants audits the Bank’s accounts annually. External Auditors usually place reliance on the work carried out by the internal audit, when forming their opinion on the accounts.



Up






Tools Used:



Apart from conventional methods of conducting the audits, the Internal Audit Department also uses advanced computer assisted audit technology like Audit Command Language (ACL) for most of the audits. The department is automated by using an audit management software.



Up





Our Contact Numbers


For more information on any of internal audit services

please contact the following:

Ext No. Direct No.

Senior Manager – 2100 24703068

Internal Audit Department


Chief Auditor - 2108 24780966

Internal Audit Department

Please Report any suspected irregularity to

Senior Manager-Internal Audit Department

UP