Control system in the process of preparing financial statements

Internal control in the Bank

The Bank has an internal control system adjusted to the risk nature and profile, as well as to the Bank’s operation scale. The Supervisory Board supervises implementation of the internal control system, while the Management Board designs it, implements and ensures its efficient operation.

The internal control system is embedded in the management system. The purpose of the internal control system is to support decision making processes that contribute to efficiency and effectiveness of the Bank’s operations, reliability of financial reporting and compliance with external and internal regulations.

The internal control system includes risk controls, compliance check and internal audit. Along from the institutional control performed by internal audit, functional control performed on all organizational levels by each employee with regard to quality and correctness of performed activities and by managers as an element of their supervisory duties constitutes the other element of the control system.

Detailed principles of operating the internal control system are determined by internal regulations of the Bank. The internal control system includes all processes performed in the Bank, including the preparation of financial statements.

The internal control of financial statements takes place:

  • At the stage of developing internal regulations that depict processes performed in the course of Bank’s operations – their compliance with accounting regulations – in particular with International Financial Reporting Standards and the Accounting Act. Internal regulations on accounting are verified on a regular basis for compliance;
  • At the stage of routine operations, where postings in the Bank's books are verified in accordance with functional control principles;
  • In organizational units independent from those carrying out operations, where postings in the books are checked for compliance with internal procedures regarding management of the general ledger;
  • At the data generation stage through algorithms validating data in IT systems that support the preparation of financial statements;
  • In organizational units preparing financial statements through verification of consistency and integrity of the presented data.


Annual Report 2014 - Bank Pocztowy