IMPROVING THE METHODOLOGY FOR INTERNAL AUDIT OF THE CURRENCY RISK OF A COMMERCIAL BANK ON THE EXAMPLE OF PJSC VTB

Abstract

The article examines issues related to the development of proposals for improving the methodology for internal audit of the currency risk of a commercial bank on the example of the activities of PJSC VTB. The author substantiates that an integral part of the banking audit, in particular the audit of currency risks, is an audit analysis, which is a comprehensive approach that includes a set of methods and techniques that allow the auditor to deeply and comprehensively study the situation in the field of currency risk management of a commercial bank. In this article, the author proposes a comprehensive methodology that allows you to explore the currency risk of a commercial bank based on the analysis of financial and economic indicators that characterize the bank's activities in the foreign exchange market. Taking the achievements of foreign specialists, the author proposed a comprehensive methodology of audit analysis aimed at reducing the level of currency risk of a commercial bank. The audit analysis concerning the currency risks of a commercial bank is proposed to be carried out according to a scheme covering several stages. The use in analysis, in comparison with other methods, eliminates the ambiguity of assessing the influence of factors when changing the sequence of their calculation and allows you to get the most accurate result. The data obtained allow auditors to form an objective picture of the situation in the field of foreign exchange transactions of a commercial bank, to determine those positions that most affect the level of currency risk, to formulate recommendations for its reduction. During the audit, it is recommended to compare the growth rates of income and expenses, as well as to determine the coefficients of their elasticity. The latter are calculated as the ratio of the income growth rate to the cost growth rate.The successful operation of commercial banks in the foreign exchange markets largely depends on the effectiveness of currency risk management. The analysis of currency risk is important for the analysis of currency risk, which is an integral part of the audit aimed at obtaining objective data that contributes to the formation of an audit opinion on this type of risk and the development of recommendations to reduce it.