Ashigbie Dinam Kwabla (Manager) Badiko, Suglo & Associates)

AUDIT PROPOSAL OF ASUTIFI RURAL BANK

LTDAshigbie Dinam Kwabla

(Manager) Badiko, Suglo & Associates)

• We consider that we are uniquely placed to audit Asutifi Rural Bank Ltd.

• We have long standing and recent experience in the provision of audit services to many companies in Ghana including rural and community banks.

INTRODUCTION

We understand the Rural Banking business in Ghana

Our approach and work program is focused on giving our clients value for money.

Our team is highly experienced Our cost and fees are competitive Our firm is well experienced and well placed

WHY ARE WE UNIQUELY PLACED TO AUDIT YOUR BANK

Owned by the local population Rural banks provide banking service to the

rural population Provide credit to small scale farmers and

businesses. Supervised by ARB apex which is a clearing

house for the rural banks

OUR UNDERSTANDING OF YOUR BUSINESS

Rural banks are heavily regulated. Rural Banks use the T 24 banking software A loss of confidence by depositors have led

to many collapses. Rural banks are now being threatened by

microfinance companies who go about collecting susu.

OUR UNDERSTANDING OF YOUR BUSINESS

◦ Our aim is essentially to gather as much information as possible on your financial transactions to enable us audit your books.

OUR APPROACH AND WORK PROGRAMME

Corporate governance structure Internal controls Hammer on risky areas


CORPORATE GOVERNANCE We will obtain a deeper understanding of

your corporate governance structure.Why: In order to know how those charged will

discharge their responsibilities for the supervision, control and direction of the bank.


INTERNAL CONTROL We will use an internal control questionnaire Evaluate internal control systems to determine

their adequacy for the protection of the bank’s assets.

Make determination as to whether the bank’s assets ate being utilized in an effective and ethical manner.

Based on the answers to these questionnaires, we will be aware of specific risk prone areas of your operations.


REVIEW OF INTERNAL CONTROL Transactions are executed in accordance

with management’s general or specific authorization eg. Those to authorize specific transactions, procedures to be followed and limits on amounts that can be authorized.

Transactions and other events are promptly recorded


ASSESSING THE EFFECTIVENESS OF INTERNAL CONTROLS

The organizational structure Quality of management supervision Extent of effectiveness of internal auditing The extent and effectiveness of the risk

management and compliance systems The skills, competence and integrity of key

personnel The nature and extent of inspection by

supervisory authorities


ASSESSING THE EFFECTIVENESS OF INTERNAL CONTROLS

Make determinations as to whether desired results are being achieved

Formulate recommendations to management for improvement in, or correction of, practices and procedures.


RISK BASED AUDIT Identify areas of financial statements where

there is higher risk of material misstatement

Identify lower risk areas This will give you a full benefit of our

knowledge of your operations and experience to determine the level of assurance in significant audit areas.

We will be more effective and efficient focusing on higher risk areas


PERCULIAR BANKING RISKS Credit risk: Increase in loan defaulters Fiduciary risk: arising from factors such as

failure to maintain safe custody or negligence in management of deposits.

Solvency risk: not meeting deposits Regulatory risk: failure to comply with bank

of Ghana regulations.


PERCULIAR BANKING RISKS Operational risk: need to process high level

of transactions in a short period of time. Loss of data arising from system failure Risk of fraud, misappropriation by staff We will use these experience to determine

your SPECIFIC RISKS. Unrealistic growth through over expanding

your loan portfolio


BANKING RISKS Errors – Unintentional misstatements Fraudulent financial reporting to please

shareholders – Intentional Misappropriation of Assets


PERCULIAR BANKING RISKS Conduct follow up on previously reported

recommendations You see, your internal controls are to: Prevent Detect We are to: Find solution Advise


AUDIT PROCEDURES Inspection (loan agreements, securities,

assets, guarantees) Observation Inquiry and confirmation (letters of credit

etc) Computation Analytical procedures


REPORTING Audit Report The audit report shall clearly indicate our opinion.

Management Letter Give comments and observations on the accounting records,

systems and controls that were examined during the course of the audit;

Identify specific deficiencies or areas of weakness in systems and controls, and make recommendations for their improvement;

Report on the degree of compliance of each of the financial covenants in the financing agreement and give comments, if any, on internal and external matters affecting such compliance;


Communicate matters that have come to our attention during the audit which might have a significant impact on the bank;

Give comments on previous audits’ recommendations that have not been satisfactorily implemented; and

Bring to the recipient’s attention any other matters that the auditor considers pertinent, including ineligible expenditures.

Recommendations to resolve/eliminate the internal control weaknesses noted should be included.

Management comments/response to audit findings and recommendations.


Summary We will gather info Monitor for general awareness Review information and surveying controls Compliance and control Identify risks Process improvement Strategy/Solution for development


OUR WORK PROGRAMME Our audit of your bank will normally take 3

to 4 weeks. A DRAFT account and long form report and

management letters will be provided by the end of the 5th week.

Signing of accounts will follow


• Our team has been drawn from the best personnel in our firm. Our team is widely experienced in accounting, auditing and taxation matters in Ghana and has considerable knowledge of a multiplicity of business systems. It is committed as a team to deliver the services you require in the most efficient and cost effective manner.

OUR TEAM

◦ Our audit services will be provided by the following:

Seidu Adamu – Managing Partner Ashigbie Dinam Kwabla – Manager Abendin Maxwell – Audit Supervisor Wereh Seth – Audit Supervisor

OUR TEAM

NAME: SEIDU ADAMU AGE: 48 NATIONALITY: GHANAIAN PROFESSION: CHARTERED ACCOUNTANT YEARS WITH FIRM: 15 KEY EXPERIENCE Seidu Adamu was one of the founding partners of Badiko, Suglo &

Associates. Over the years he has had a wide range of experience of a range of industries in the Public and Private Sectors in Ghana in the field of auditing, investigation, tax consultancy, management consultancy and training. He has worked on many projects by being seconded from Badiko Suglo & Associates.

EDUCATION MBA IN PROJECT MANAGEMENT - (LEGON) CHARTERED ACCOUNTANT - (INSTITUTE OF CHARTERED ACCOUNTANTS,

GHANA) BA ECONOMICS - (UNIVERSITY OF GHANA, LEGON)

OUR TEAM

EXPERIENCE RECORD Badiko, Suglo & Associates ( Chartered Accountants) : July, 1998

to Date - Managing Partner Responsible for the execution of audit assignments Seconded to UWADEP, IFAD as Financial Controller from 2001-2005 Suglo & Co. ( Chartered Accountants) : February, 1996 to June ,1998 - Audit Manager Responsible for the execution of audit assignments Issifu Ali & Co. (Chartered Accountants) : July, 94 to February,1996 - Audit Staff Senior - Lead audit teams to carry out various audit assignments

OUR TEAM

NAME: ASHIGBIE DINAM KWABLA AGE: 27 NATIONALITY: GHANAIAN PROFESSION: CHARTERED ACCOUNTANT YEARS WITH FIRM: 5 EDUCATION CHARTERED ACCOUNTANT - (INSTITUTE OF CHARTERED ACCOUNTANTS,

GHANA) BSC ADMINISTRATION (ACCOUNTING) – UNIVERSITY OF GHANA, LEGON. CHATERED INSTITUTE OF TAXATION, GHANA – TAX EXAMINATIONS –

(ONGOING)

WORK EXPERIENCE Badiko, Suglo & Associates ( Chartered Accountants) : May, 2008 to

Date - Manager Responsible for the execution of audit assignments

OUR TEAM

NAME: ABENDIN MAXWELL AGE: 30 NATIONALITY: GHANAIAN POSITION: AUDIT SUPERVISOR YEARS WITH FIRM: 6 EDUCATION PROFESSIONAL QUALIFICATION ACCA Final level (remain one paper to complete) ACADEMIC QUALIFICATION B.Sc. Applied Accounting (Second Class Upper) Institution: Oxford Brookes University, UK Advanced Business Certificate(RSA III) WORK EXPERIENCE Badiko, Suglo & Associates - Audit supervisor

OUR TEAM

NAME: WEREH SETH AGE: 30 NATIONALITY: GHANAIAN POSITION: AUDIT SENIOR YEARS WITH FIRM: 7 EDUCATION ICAG – Level 3

SUNYANI POLYTECHNIC Higher National Diploma (Accounting Option) WORK EXPERIENCE Badiko, Suglo & Associates ( Chartered Accountants)

OUR TEAM

Our cost and fees are based upon the degree of responsibility and the skill involved.

We use the time rate, or the performance rate

Time rate is simpler

Our estimated fees for the preparation and submission of audited accounts.

Below are the fees and rates using the time rate for 3 weeks

OUR FEES

Position Name Man Hours Hourly Rate Amount

Managing Partner Seidu Adamu 10 100 1,000

Audit Manager Ashigbie Dinam K 20 70 1,400

Audit Supervisor Abendin Maxwell 90 50 4,500

Audit Senior Wereh Seth 90 30 2,700

TOTAL 9,600

OUR FEES

These fees are negotiable

The bank will be responsible for our accommodation and feeding during the audit period.

Fees will not necessarily go up in subsequent years mainly as a result of inflation.

Our fees will be paid after the signing of the accounts

OUR FEES

Badiko, Suglo & Associates Established in 1998. The firm has 16 employees 6 chartered accountants Other employees are at the various levels of

professional qualification The firm has a main office in Accra and 2

other offices in Wa and Bolgatanga.

OUR FIRM

SERVICES Management consultancy services, tax services, company secretarial services

OUR FIRM

PARTNERS Alhaji Annunbari Badiko ICA – 1973 CIT – 1986 – Fellow Bsc Administration - 1969 Coopers and Lybrand tax partner, 1986 to 1998 Coopers and Lybrand, Managing Partner, Kaduna

office. – 1982 to 1986 Deputy minister, Trade & Finance, Oct 1979 to Dec

1981. Chief internal auditor – Bank for housing and

construction, 1977 to 1979

OUR FIRM

James Bawol Suglo B.Sc. (Admin.) Accounting Major, 1979-

1981 A C A. (NIGERIA) 1984 C A. (GHANA) 1993 Badiko, Suglo & Associates July 1998 -

PARTNER Suglo & Co. (Partner) February, 1996 – June

1998) ISSIFU ALI & CO. (Chartered Accountants)

Accra, Ghana

OUR FIRM

Aminu Ibrahim & Co. (Chartered Accountants, Kano, Nigeria) - Audit Manager, August, 1988-June, 1992

B.O.Omotosho & Co. (Chartered Accountants) Legos, Nigeria - Audit Trainee, November 1982 – November, 1984, Audit Senior, January, 1986 – December, 1986

He has given lots of consultancy to the United Nations

OUR FIRM

OUR CLIENTS FINANCE Danniads Limited – Accra Sonzele Rural Bank Limited – Jirapa Melbond Microfinance – Accra Bangmarigu Rural Bank – Walewale Asawinso Rural Bank – Sefwi Asawinso

OUR FIRM

CONSTRUCTION AND MINING P & W Ghanem Limited – Wa Abujah Development Limited – Accra West Africa Hydraulics – Accra Wilhelm Limited – Accra & Tarkwa Al-Mak Construction Limited – Wa Cadefco Limited – Tema Myturn Ltd – Bolgatanga Chackson Trading & Construction Limited –

Accra & Bolgatanga

OUR FIRM

LEISURE SERVICES AND INFORMATION TECHNOLOGY

North West Consortium – Wa Pronet (NGO) – Accra & Wa Vamed Nederlands (NGO) – Accra Socioserve – Ghana (NGO) – Akosombo Action for Sustainable Development (NGO) – Tumu Comme Ci Comme Ca (Hotel) – Bolgatanga Sand Gardens Hotel – Bolgatanga Sisters of Saint Louis (NGO) – Kumasi Innovare – Accra Salmarise Hotel Ltd – Accra

OUR FIRM

EDUCATION Dan-Ibu International School – Wa Jacques Pervert Ecole Francaise D’Accra –

Accra Startrite Montessori School – Accra

COMMERCE Maalma Company Ltd – Wa Lesken Enterprise Ltd – Bolgatanga

OUR CLIENTS

HEALTH Hobats Clinic – Accra Juaboso Health Insurance – Juaboso Wa Municipal Health Insurance Scheme –

Wa Wa West Mutual Health Insurance Scheme –

Wechiao

OUR CLIENTS

RETIRED RURAL BANKS: Borimanga Rural Bank, Tamale – 2010 Sissala Rural Bank, Tuma – 2011 Nandom Rural Bank, Nandom - 2009

OUR CLIENTS

One thing which is clear; we execute our assignments in a structured manner. We have demonstrated all along that this will lead to significant cost savings. We have structured our services in a way to minimize duplication of efforts and above all leads to the effective and efficient delivery of audit services. We therefore look forward to servicing your company with the expertise that we have.

CONCLUSION

THANK YOU

CONCLUSION

Documents

Ashigbie Dinam Kwabla (Manager) Badiko, Suglo & Associates)