Audits on behalf of the Compensation Scheme of German Banks (EdB)

The Auditing Association performs audits on behalf of the Compensation Scheme of German Banks (EdB) under the provisions of the Deposit Guarantee Act (EinSiG). These audits refer to credit institutions, which participate exclusively in the private banking sector’s statutory Deposit Protection Scheme.

Audits are performed to assess whether there exists any risks of a case for compensation. Audits take place at the assigned institutions at regular intervals and when the occasion arises.

In the framework of our risk-oriented audit approach, the focal points of the audit are deduced from the individual institution’s risk structure. The object of the audit is to evaluate the economic relations, the risk management, the recoverability of assets (e.g. credit portfolio and security holdings), as well as risk liabilities (e.g. from investment consulting or asset management) on a regular basis. The may also include auditing the bank’s business model.

Audit of internal control systems

The deposit protection audits carried out on behalf of the Compensation Scheme of German Banks are designed as a combination of test of controls and substantive procedures. Thus, besides the individual business risks, the internal control and risk management systems relating to the appropriateness and functionality are consistently assessed and analysed.

The audits performed under the provisions of the Deposit Guarantee Act are similar to the deposit protection audits at member institutions. The Audit Guidelines issued by the German Banks Compensation Scheme therefore only differ marginally from the Auditing Association Audit Guidelines in terms of content and structure. Further details on the audit modalities can also be found on the page Deposit Protection Audits.

More information about the topic

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Links Deposit Protection AuditsGerman Banks Compensation SchemeGerman Banks Compensation Scheme Audit Guidelines

     

 

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