Term Paper on Controlling Proceess

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Govt. Titumir College

Term Paper
On

"Application of Controlling Process in Banking Sector in Bd."

Prepared By Supervised by Name: Md. Golap Mia Rita Khandoker Roll:181
Year: BBA (2nd year) Lecturer Session: 2011-12 Department of Management NU Roll No: 9613648 Govt. Titumir College Department of Management Dhaka.

Govt. Titumir College, Dhaka.

Date of Preparation: 26.01.2012

Letter of Transmittal

To
Lecturer
Department of Management
Govt. Titumir College,
Dhaka.

Sub: Letter of transmittal.

Dear Sir.

I would like to draw your kind attention that we are submitting our report about the topic of “Application of Controlling Process in Banking Sector in Bd.” We have tried our best to prepare this report which will fulfill our requirement. We believe all these new ideas from this “Term Paper” will help us in our future practical life.

We will be highly grateful to your honor if you would kindly accept our “Term Paper” and obliged thereby.

Thanking you

Name: Golap Mia
Year: BBA (2nd year)
Session: 2011-12
NU Roll No: 9613648
Department of Management
Govt. Titumir College,Dhaka.

Table of contents and counts:
ChapterTopic namePage count

1 Introduction4
2Conceptual issues5-6
3Database7
4Findings of study8-24
5Conclusion& recommendations25-27

1. Internal Control Policy
(1.1) Overview
Banking has a diversified and complex financial activity which is no longer limited within the geographic boundary of a country. Since its activity involves high risk, the issue of effective internal controls system, corporate governance, transparency, Accountability has become significant issues to ensure smooth performance of the banking industry throughout the world. In many banks internal control is identified With internal audit; the scope of internal control is not limited to audit work. It is an Integral part of the daily activity of a bank, which on its own merit identifies the risks associated with the process and adopts a measure to mitigate the same. Internal Audit on the other hand is a part of Internal Control system which reinforces the control system through regular review.

According to an IMF publication Internal Control refers to the mechanism in place on a permanent basis to control the activities in an organization, both at a central and at a departmental divisional level. A key component of effective internal control is the operation of a solid accounting and information system.

In Bangladesh analysis on the performances of the banks has pointed out that an effective internal control system could have contributed significantly in improving the performance of the Commercial banks if the control culture is brought in through policy guidelines and structural changes at these banks and procedural controls.

(1.2) Objective of Internal Control
The primary objective of internal control system in a bank is to help the bank perform better through the use of its resources. Through internal control system bank identifies its weaknesses and takes appropriate measures to overcome the same. The main objectives of internal control are as follows: • Efficiency and effectiveness of activities (performance objectives). • Reliability, completeness and timelines of financial and management information (information objectives) • Compliance with applicable laws and regulations (compliance objectives) . Accountability to the Board.

(2) STANDARDS OF INTERNAL CONTROL

Internal control policies set forth some standards that departments must establish and incorporate in an...
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