In this sample report, internal audit reviews the treasury function at an organization’s corporate headquarters. The objective of this review was to assess and evaluate the efficiency of key business processes in the treasury function (cash management, electronic fund transfers, investments and foreign exchange hedging), evaluate the adequacy of applicable treasury and operational internal controls, and to identify opportunities for process improvements.
The following key observations were noted during the review:
- Investment activity authorizations and approval limits are not established in the cash investment policy and foreign exchange hedging and electronic funds transfer policies are not documented.
- Cash forecasting is done on a limited basis, typically not extending further than one day ahead.
- Effective use of control disbursement accounts and positive pay services should be continuously reviewed for potential cost savings and increased efficiencies.
- The use of non-standard electronic funds transfer forms should be limited for exceptions.