CURRENT APPROACHES AND NEW RESEARCH IN
MODERN SCIENCES
International scientific-online conference
112
ORGANIZATION OF BANK AUDIT BASED ON INTERNATIONAL
AUDIT STANDARDS
Baxranov Feruz Malikovich
Banking and finance academy of the Republic of Uzbekistan
https://doi.org/10.5281/zenodo.14731451
Annotation.
This thesis explores the organization of bank audits in
alignment with International Audit Standards (IAS). It highlights the critical role
of effective audits in ensuring transparency, reliability, and compliance in the
financial operations of banks. The study evaluates the existing methodologies
and practices for auditing in the banking sector, identifying their strengths and
limitations.
A significant focus of the research is on adapting and implementing IAS
principles to enhance the efficiency and reliability of bank audits. The thesis
examines the theoretical framework of IAS, their application in various banking
contexts, and their relevance in addressing risks, fraud detection, and financial
irregularities.
Keywords:
Bank audit, International Audit Standards (IAS), financial
transparency, risk management, fraud detection, compliance, audit
methodologies, banking sector, regulatory frameworks, auditor qualifications,
data analytics, advanced audit technologies, financial stability.
The globalization of financial systems has underscored the importance of
adopting standardized practices in auditing to ensure transparency,
accountability, and trust within the banking sector. Bank audits play a pivotal
role in verifying financial integrity, assessing risks, and ensuring compliance
with regulations. This thesis explores the organization of bank audits in
accordance with International Audit Standards (IAS) to address emerging
challenges and improve audit effectiveness.
Theoretical Framework of Bank Audits and International Audit Standards
Definition and Importance of Bank AuditsBank audits are systematic
examinations of a bank's financial records, internal controls, and compliance
with regulatory requirements. They ensure the accuracy of financial statements,
detect fraud, and strengthen stakeholder confidence.
Overview of International Audit Standards (IAS)IAS, developed by the
International Auditing and Assurance Standards Board (IAASB), provide globally
recognized guidelines for conducting audits. They aim to unify audit practices,
promote consistency, and enhance audit quality across jurisdictions.
CURRENT APPROACHES AND NEW RESEARCH IN
MODERN SCIENCES
International scientific-online conference
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Key Principles of IASIAS emphasize risk-based auditing, professional
skepticism, materiality, and transparency. These principles are crucial for
identifying misstatements, mitigating risks, and ensuring the reliability of
financial reports.
Current Practices and Challenges in Bank Audits
Existing Bank Audit PracticesBanks typically follow national audit
standards, which may vary significantly across countries. Traditional methods
often rely on manual processes and lack integration with international
frameworks.
Challenges in Bank Audits
Inconsistent audit standards leading to discrepancies in audit quality.
Rapidly evolving financial instruments and technologies increasing audit
complexity. Limited expertise in advanced risk assessment techniques.
Role of Technology in Enhancing IAS-Based Bank Audits
Integration of Data AnalyticsData analytics enables auditors to process
large volumes of financial data, identify anomalies, and perform real-time risk
assessments. Artificial Intelligence and AutomationAI-powered tools facilitate
predictive analysis, fraud detection, and compliance monitoring, reducing
reliance on manual audit procedures. Cybersecurity AuditsWith increasing
reliance on digital banking, cybersecurity audits are critical to safeguarding
financial systems and ensuring data integrity.
Recommendations for Effective IAS-Based Bank Audits
Regulatory Support and Policy ReformsGovernments and regulatory
bodies must create conducive environments for IAS adoption through updated
policies and support mechanisms.
The organization of bank audits based on International Audit Standards is
essential for achieving transparency, reliability, and trust in the banking sector.
By adopting IAS, banks can enhance their audit quality, mitigate risks, and
comply with global regulations. Leveraging technology and fostering
collaboration are critical to the successful implementation of IAS-based audits.
This thesis contributes to the discourse on improving bank audits and offers a
roadmap for transitioning to globally recognized standards.
References:
1. International Auditing and Assurance Standards Board (IAASB). "Handbook of
International Quality Control, Auditing, Review, Other Assurance, and Related
Services Pronouncements." IFAC, 2023.
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MODERN SCIENCES
International scientific-online conference
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2. Basel Committee on Banking Supervision. "Supervisory Guidance for
Assessing Bank Financial Auditing Standards." Bank for International
Settlements, 2021.
3.Arens, Alvin A., Elder, Randal J., and Beasley, Mark S. "Auditing and Assurance
Services: An Integrated Approach." Pearson Education, 2020.
4. Institute of Internal Auditors (IIA). "International Professional Practices
Framework (IPPF)." IIA, 2022.
5. Knechel, W. Robert, Salterio, Steven E., and Ballou, Brian. "Auditing: Assurance
and Risk." McGraw-Hill Education, 2021.
6. Deloitte. "The Future of Bank Auditing: Trends and Challenges in a Digital
Era." Deloitte Insights, 2023.
