Early detection of symptoms of frauds by the inspecting officials is useful to the management in the prevention of frauds thereby reducing the reputation risk, according to P Jayarama Bhat, Managing Director and Chief Executive Officer of Karnataka Bank Ltd.

Speaking at a seminar on inspection and audit for internal auditors of Karnataka Bank Ltd in Mangaluru on Wednesday, he said that effective inspection will help the bank to accomplish its objective by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

Speaking on the occasion, TR Chandrasekaran, Director of the bank, said an effective audit function is the prerequisite for supervisory comfort to the management.

Laying emphasis on the quality of internal audit system in the bank, he said it is to ensure compliance with know-your customer (KYC) and anti-money laundering norms, to detect income seepage, to ensure the safety of the funds of customer, and to protect the organisation and its reputation. He also emphasised on the importance of time management and focused approach while carrying out inspection and reporting.

MS Mahabaleshwara, Chief General Manager of the bank, stressed the need to improve compliance culture in the bank.

A press release said here on Thursday that the seminar discussed about the role of effective inspection and proper reporting of findings, compliance function, KYC compliance, tax matters, areas relating to credit, loan fraud, etc.

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