INTERNAL AUDIT USES CASEWARE™ MONITOR TO GAIN OVERALL BUSINESS INSIGHT
With an AA+/F1 rating, Banco de Costa Rica (BCR) has a stellar reputation as one of the most profitable and best run banks in Latin America. It offers the full spectrum of individual and corporate financial services, namely, retail, brokerage and investment services. BCR is one of Costa Rica’s leading financial service providers and has been consistently operated by blue chip management with over 75% of all transactions being electronic. The company, in the past year, has achieved net income growth of over 25%, asset growth of over 17%, and loan portfolio growth of more than 30%.
“With CaseWare™ Monitor we were able to take control.”
Chief Internal Auditor, BCR
BCR’s Internal Audit (IA) department used data analytic tools to test controls and do compliance revisions. These tools were used to monitor the compliance of 10 relevant rules. Each one of BCR’s 150 branches would email their controls’ status reports to IA. BCR could not properly and adequately control the branches’ responses to the exceptions, especially when they numbered 10 rules x 150 branches = 1,500 reports. There was no way for BCR to know which branches had replied to exceptions in a timely manner, and which ones had not. This resulted in delayed and extremely reactive internal control initiatives. Furthermore, there was the tedious task of monitoring hundreds of thousands of financial transactions per day to ensure regulatory compliance. IA needed a tool to aid in its mandate of proactive internal control initiatives.
CaseWare™ Monitor is able to:
- Automate the running of scripts
- Comprehensively monitor transactions
- Properly manage workflow of issues across all branches
IA was able to gain control of the exceptions generated by its data analytic tools and to manage the workflow of how exceptions were processed and analyzed by the branches. IA was able to run rules automatically and send notifications to branch personnel for follow-up. Any breaches in business process rules that had not been addressed within a set timeframe were then automatically escalated, which allowed IA to identify which offices had not dealt with the control breaches. As a result, IA took corrective measures with the unresponsive branches, and now has timely resolution of over 95% of the cases sent to each branch every month.
- CaseWare™ Monitor automatically distributes exceptions, compliance rules and reports to the right branch personnel
- Branch personnel are automatically notified of pending issues requiring their attention, and any items not dealt with in a timely fashion are automatically escalated
- 95% of all cases and issues are now dealt with on-time
- Month-end reporting is now automatic and takes hours instead of days
- IA has a repository of cases and issues and their remediation history
Now that IA has changed its focus to proactively managing organizational risks, more than 300 rules-based tests have been implemented within the past year to monitor more than 300 controls. This entire process is automated.
About Pierre Consulting
- No categories