Bank audit Germany
A financial audit examines an organization's annual accounts and the records supporting them. An external auditor assesses whether the financial statements meet the applicable accounting requirements. For banks in Germany, the statutory assignment also includes specified supervisory duties under section 29 of the Banking Act.
The audit provides shareholders, management and supervisory authorities with an independent assessment of the reported financial information. Evidence from accounting records and controls supports that assessment and the resulting audit report. Internal audit and supervisory inspections have separate responsibilities, so they do not replace the annual financial audit.
What the external auditor checks
Under § 29 of the German Banking Act (KWG), the auditor examines the bank's financial position and specified reporting and organizational duties as part of the annual audit. Findings go into the audit report; serious matters can trigger a direct notification to BaFin and the Bundesbank. The exact scope depends on the institution and applicable rules.
Internal audit is a bank function
Internal audit tests processes and controls throughout the year under a bank's own audit plan. Internal audit reports findings to management and the supervisory body. The external auditor forms an opinion on the annual accounts and fulfills a statutory reporting mandate. A supervisory inspection by BaFin or the Bundesbank has yet another legal basis. The Bundesbank overview (in German) describes its bank examinations.
Where technology enters the audit file
A bank auditor needs evidence for balances, loans, access rights and outsourced systems. A risk model may affect provisions or regulatory figures; an ICT provider may affect the reliability of records. Bank risk management and DORA in Germany cover two of the operating contexts that shape the evidence.
Is an external audit the same as a supervisory inspection?
No. The external auditor is appointed for the statutory annual audit and has additional duties under § 29 KWG. BaFin and the Bundesbank can examine a bank in their supervisory roles. A finding in either process can matter to the other, but the mandates remain distinct.
Upcoming events in Germany
Financial audit and Finance Loop
Finance Loop discusses bank controls, reporting and technology with professionals from financial institutions and advisers. Audit questions meet risk, compliance and data work at its events.
Finance Loop is a professional network for emerging technologies in finance. Finance Loop's events and partnerships bring practitioners together across Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.