Brokerage Audit Manual

Senior Auditor : ____________________

Junior Auditor : ____________________

Ref Document

- Agreement – Annex I

- SCA Regulation – Annex II

1. Checklist:

1.1. Internal Control Questionnaire (ICQ)

# Audit Question Comments

1 Determine the existence of an Internal Audit Manual, (IAM) approved by the Brokerage Management and a copy filed with ESCA.

3 Ensure that the Internal Audit Manual is updated for amendments, in the laws, regulations, other regulatory decisions and the Authority(s) duly notified.

4 Ensure that the audit planning and procedures are conducted based on risk management.

5 Perform tests of internal controls, compliance with company policy, procedures and regulations.

Evaluate the effectiveness of the design of the internal procedures, operation of the policies and procedures surrounding the internal control in place.

7 Ensure that the test of internal control/compliance is sufficient to identify significant deficiencies in internal controls.

8 Document the assessment of internal controls and compliance based on tests performed and document the conclusion on the controls in effect.

9 Consider the nature, extent and timing of substantive tests based on the assessed level of control risk and the resulting acceptable level of risk detection.

10 Ensure that the audit sample size includes the following factors:

• Risk of assessing control, risk too low

• Tolerable Standard Deviation Rate

• Expected Deviation Rate

• Population Size

Sample Size Example

11 Consider, proper segregation of duties,

• Authorization of transactions by manager

• Recordkeeping (Access to Data)

• Custody of assets

1.2. ESCA/ADSM/DFM Compliance

ESCA’S Regulations 2000 including Resolution No.12,13 and 176/P of 2006.

# Internal Audit Programme Comments

1. Evaluate that the partner of the Brokerage firm is not affiliated or occupies a management position in another Brokerage firm. Ref Article 3

Procedures

a) The...