Ican 2021 Audit And Assurance Question 4

A regulatory review was conducted on SINAPE Microfinance Bank Limited in September, 2018. During the course of the review, numerous findings and recommendations were made in respect of the bank's ongoing compliance with various internal and external regulations, policies and guidelines. It was noted from the reports generated that processing systems, internal controls over financial accounting and financial reporting were not in order. The review of the bank's process and procedures for transaction recognition was far from satisfactory. Furthermore, there were instances of management's override of controls in the financial reporting process. The regulator required the bank to appoint a reputable firm of chartered accountants to perform a review of the internal control system and make a comprehensive recommendation. Your firm has been appointed by the bank to perform the internal control reviews and as part of the exercise, a brainstorming forum has been arranged. You have been nominated to make a presentation at the brainstorming forum.