CONSIDERATIONS ON RISK ASSESSMENT IN AUDITING THE PERFORMANCE OF CREDIT INSTITUTIONS
CONSIDERATIONS ON RISK ASSESSMENT IN AUDITING THE PERFORMANCE OF CREDIT INSTITUTIONS

Summary/Abstract: The analysis of credit institutions' performance is based on a set of financial and non-financial indicators through which a multitude of aspects are investigated in order to outline the accurate and complete image of bank performance. The audit risk of banking performance is a very high when considering the multitude of investigated aspects, the huge volume of operations carried out and their complexity, while the banking activity is not interrupted, only accidentally. The main concepts that give content to the performance of credit institutions are: assets quality, liquidity, results, capital adequacy, market risk and last, but not least, financial risk. In order to assess the audit risk, as a preliminary step in the planning of audit activity, it is necessary for the auditor to obtain information on the involvement of those responsible for governance, on how to organize internal control and audit activities, monitoring and reporting activities, and the existence and reliability of information systems appropriate to banking.

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