Audit Programs

Internal audit program

HFC Bank’s Internal Audit (IA) function, which is independent of all other departments functions, has been established in order to assist the Board of Directors and executive management in achieving their objectives; by providing them with reasonable assurance regarding the quality and effectiveness of the Bank’s internal control, risk management, governance systems and processes, thereby helping the Board and senior management protect the Bank and its reputation.

HFC Bank has adopted a risk management and internal control structure, referred to as the “Three Lines of Defense”, to ensure it achieves its business needs while meeting regulatory and legal requirements and its responsibilities to shareholders, customers, regulators and staff. HFC Bank’s internal audit department’s role as the 3rd line of defense is independent of the 1st and 2nd lines of defense. In cases where Internal audit department performs similar testing or monitoring activities to those undertaken by the 1st or 2nd lines of defense, these are undertaken as part of Internal audit departments independent assurance role and are not to be relied upon by management as a substitute for, or supplement to, 1st or 2nd line of defense activities.

As a vital component of good corporate governance, an in – house Internal Audit function has been established by HFC Bank Board Audit Risk Sub – Committee (i.e. Internal audit department derives its authority from Board Audit Risk Sub Committees, which is a subcommittee of the Board of Directors of HFC bank). HoA reports functionally to the Chairman of the BARSC and reports administratively to the Bank’s CEO.

HIFC Bank internal audit function is govern by HFC Bank’s Internal Audit Charter, Internal Audit Policy and Procedure documents.

HFC Banks internal audit departments overall objective is to evaluate the:

  • effectiveness and efficiency of internal controls, risk management and governance systems in the context of both current and potential future risks;
  • reliability, effectiveness and integrity of management information system and processes (including relevance, accuracy, completeness, availability, confidentiality and comprehensiveness of data);
  • monitoring of compliance with laws and regulations, including any requirements from supervisors (RBF) and
  • safeguarding of assets.

External audit programs

The company has engaged KPMG as its external auditors for the period of 5 years effective from financial period ending June 2019, subject to confirmation at the Annual General Meeting and approval by RBF in accordance with Banking Act 1995 and the Companies Act.