Audits of the annual financial statements of banks, financial service providers and payment institutions include auditing not just the financial statements under the Commercial Code and the management report, but also the institutions’ organizational duties. That especially extends to auditing and assessing the appropriateness of the risk management system. The emphasis here is on the concept established for risk-bearing capability, management of risks considered significant, and a process-based audit with reporting to clients, bearing in mind the addressee’s need for information.
Lending is generally the core business of banking institutions, and a significant part of auditing annual financial statements. We evaluate whether lending is organized in an orderly, risk-appropriate way, and whether the tools used to identify, control and monitor default risks are appropriate.
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