The majority of banks don't maintain database to assess the financial impact of internal audit (IA) on many types of performances of banks, a survey revealed on Monday.
Some 72 per cent banks said they never maintain a database of overstated expenses identified through IA mechanism while 14 per cent of respondents said it is not possible to maintain a database on the subject, according to the survey.
The same number of respondents said they never maintained records on understated interest revenue charged to the customers as identified through IA mechanism.
Most of the banks have never assessed the impact of internal audit on the performance of banks, the survey showed.
The survey paper titled "Use of Information Technology in Enhancing Efficiency of Internal Control System" was presented at a workshop organised by Bangladesh Institute of Bank Management (BIBM).
A team of academicians and bankers led by Dr. Md. Mahabbat Hossain, Assistant Professor of BIBM, conducted the survey.
While addressing the programme, the speakers said the majority of banks have not used information technology though most of them automated their systems.
They said there is a considerable shortage in the number of bank employees equipped with required level of IT competence.
Dr. Muzaffer Ahmed Chair Professor of BIBM & Former Professor of Dhaka University Barkat-e-Khuda said development of a prudent ICS (internal control system) and its proper implementation would be supported by different stakeholders, both internal and external.
"The system of internal controls may be manual or computerised. In the digitized world, the banking process and control thereto may be conducted through IT," he said.
Speaking at the programme, Deputy Governor of Bangladesh Bank S.M. Moniruzzaman said the banking system is heavily dependent on technology nowadays.
"From the use of core banking system to the use of internet banking, banks have surged ahead. Why should ICS be left alone in this wonderful journey?" he questioned.
He said banks can now monitor its different segments through the use of sophisticated IT tools. All the banks of Bangladesh have started using IT in proving the internal control system.
He said Bangladesh Bank is always very active in bringing automation in different possible spheres of banking business on the one and development of the internal control system through issuance of different prudential guidelines on the other.
Md. Nazimuddin, Executive Director of Bangladesh Bank and Director General of BIBM, delivered welcome address.
Dr. Barkat-e-Khuda, Dr. Muzaffer Ahmed Chair Professor of BIBM and Former Professor of Dhaka University chaired the program.
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