MCB BANK

PRESENTED BY: Abbas Khozema Mandviwala ( id: 13210 )

HISTORY

MCB Bank Limited was incorporated by the Adamjee Group on July 9, 1947, as a limited company.

The bank was nationalized in 1974 during the government of Zulfikar Ali Bhutto.

This was the first bank to be privatized in 1991.

The president of the bank is M.U.A Usmani.

Vision Statement

To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.

 Mission Statement

We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers.

ORGANIZATIONAL CHART

Audit & RAR Wholesale BANKING

CORPORATE AFFAIRS

BOARD OF DIRECTORS

COMPLIANCE & BANKINGol

RISK MANAGEMENT

SPECIAL ASSET MANAGEM.NT

HUMAN RESOURCE MANAGEMENTurce

Management

INFO TECHNOLOGYchn

ology

STRATEGIC PLANNINGnt

Banking

FINANCIAL CONTROL

COMMERCIAL BANKING

Operations

CONSUMER BANKINGing

TREASURY & FOREXorex

ISLAMIC BANKING

Chairman

President

AUDITORS MESSAGE TO HIS MEMBERS

We conduct our audit in accordance with the international standards of auditing as applicable in Pakistan.

These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatement.

INTERNAL AUDITOR’S JOB RESPONSIBILITIES

Supervise control over capital expenditure. Implement the contents of yearly audit plan. Supervise assignments of assurance and

consultancy nature. Supervise plan amendments based on changes

in risk factors.

INTERNAL CONTROL The board of directors and audit committee is independent from

management.

The audit committee has a charter outlining its duties and responsibilities.

There is an adequate supervision and monitoring of decentralized operations.

There is an appropriate segregation of duties.

There are standards and procedures for hiring, training, motivating, evaluating, promoting, compensating, transferring, and terminating personnel that are applicable to all functional areas (e.g., accounting, marketing, information systems).

Policies and procedures are clear and issued, updated, and revised on a timely basis.

Job performance is periodically evaluated and reviewed with each employee.

Internal audit performs a periodic risk assessment.

INTERNAL AUDITOR AT MCB BANK

Asad Javed

SWOT Analysis STRENGTH

1. MCB is a well established bank, enjoying long history of over 55 years of experience and profitable operation.

2. MCB was the first privatized bank that gives it an edge over other nationalized banks.

3. MCB is the market leader in introduction of E-banking and it has the largest ATM network in the country.

WEAKNESS

1. The overseas branch network of MCB is limited. It has only four overseas branches.

2. Most of the employees lack managerial training as they are not properly educated.

OPPORTUNITY

3. MCB may enhance its Rupee Travellers Cheques (RTCs) sales by searching for new market .

THREAT

4. The Rupee Travellers Cheque (RTC) sales volumes may be affected on account of regulatory restriction imposed by SBP on issuance to large value denominations

TRANSACTIONAL PROCESSIONG CYCLE

Revenue cycle: (It includes MCB bank sales and Accounts receivables account).

 

Expenditure cycle: (It includes MCB bank purchases and Accounts Payable

accounts).

 

Finance cycle: (It includes requiring and allocating of funds by MCB bank).

 

Financial reporting cycle: (It is done through the software that MCB uses).

QUESTIONS & ANSWERS

1. Has the auditor devised an overall audit plan identifying areas of risk?

Answer:

Yes, the auditor first assesses the MCB Bank risk management process. Then, use the risk assessment to develop an audit plan. Lastly, expresses an overall opinion regarding the quality of control designed to reduce risk.

2. Does the internal auditor review the segregation of duties?

Answer: Every employee and manager of MCB Bank has been

defined their role very well. Different persons are kept for authorization, record keeping and custody of assets.

3. Does the internal auditor examine and confirm all investment securities?

Answer: Yes, internal auditor at MCB Bank confirms the

investment securities because risk is involved.

ACKNOWLEDGEMENT

I would like to thank my “ Internal Auditing and EDP Accounting” faculty, Dr. Muhammad Mehmood , for giving me such an interesting work.

This has been a great learning experience for me, and I am sure it will benefit me in future.