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A&T BANK 2014 FAALİYET RAPORU
ANNU L R PORT 2014
Report of the Audit Committee
on Internal Systems of the Bank
Pursuant to the framework of the Regulation Regarding Internal
Systems and Internal Capital Adequacy Assessment Process
of Banks, the Audit Committee was established by the Bank’s
Board of Directors to execute the auditing and monitoring
functions of the Board. The Director of Internal Systems,
appointed by the Board of Directors, coordinates the Internal
Systems Departments in accordance with the requirements of
the Banking Law, Regulation Regarding Internal Systems and
Internal Capital Adequacy Assessment Process of Banks, along
with other relevant rules and regulations, and works under
the supervision of the Bank Audit Committee. Although the
functions, duties and responsibilities related to internal auditing,
internal control and risk management are wholly separated
within the Bank, the Inspection Council, the Internal Control
Department and the Risk Management Department all work in
coordination with each other.
The primary objective of A&T Bank’s internal systems policies
is to increase shareholder value by balancing risk and return
in banking activities. Internal auditing and risk management
activities have aimed to start prior to taking risks and project the
precautions which should be taken.
The Audit Committee believes in the necessity of building and
operating an efficient and sufficient internal systems structure
appropriate for the Bank’s activities and characteristics
under ever-changing conditions. Accordingly, A&T Bank has
established the systems required for a strong and controlled
expansion.
The global economic crisis has revealed various application
errors in internal auditing and risk management; and has put the
importance of effective risk management and internal auditing
into sharp focus.
The Inspection Council and the Internal Control Department
plan and execute their activities with a risk-based approach that
focuses on minimizing operational risk as well as conforming
the Bank’s activities to both internal rules and external
legislation, while increasing efficiency and service quality.
Reports on audit results are delivered to relevant executives in
a timely manner to ensure that any weaknesses are eliminated
without delay.
The Inspection Council and the Internal Control Department
continued their activities apace in 2014. The “Self-Assessment
Application” implemented in 2010 to raise awareness of
internal controls among head office departments’ staff and
branch personnel while improving efficiency and effectiveness
in internal auditing functions, has continued in 2014.
In addition to standard audits carried out every year, A&T Bank
has also prioritized its business processes; to this end, the
Bank conducts “Business Processes Risk Analyses” within
the framework of the “Management Declaration” and carries
out process and information systems audits. Furthermore, a
report was presented to the Audit Committee after evaluating
the accuracy of the data used in the Internal Capital Adequacy
Assessment Process Report which was prepared under the
coordination of the Risk Management Department. The report
evaluated the sufficiency of the systems and processes along
with whether data, systems and processes provided basis for
correct information and analysis.
A&T Bank has also focused on establishing an effective
information security framework in compliance with the relevant
regulation and the best applications. The Bank continued
its daily monitoring efforts in order to identify user activities
carried out during the previous working day, report any unusual
activities and take timely measures as required.