Middle Office Review: Middle Office External review and audit

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Treasury Middle Office External Risk Audit Report Sample Format & Template

When it comes to Treasury Middle Office, Financial Middle Office or Banking Middle Office review, the regulatory requirement is an annual external review and independent audit of the Middle Office function to ensure that any identified gaps are clearly highlighted and rectified. Given the role the Middle Office function plays in being the gate keeper to risk and at times regulatory reporting, this audit is essential for ensuring that no compromises have occurred in the reporting line or hierarchy for the middle office functions, that middle office valuation, pricing and reporting model are correct and accurately calibrated, the reporting and control process worked well and is generating middle office reports within the allocated time frame.  While an internal audit can review the same factors, the external audit brings in additional objectivity to the exercise.

The links that follow present the format for this external validation exercise including the draft of a sample Middle Office audit report that follows the BIS (Bank for International Settlement) supervisory review framework for Middle Office gap analysis and audit.

Middle Office Review: Sample middle office gap analysis report

Middle Office Review: Sample Middle Office Assessment and review report

Middle Office Review: Middle Office model Basel II Gap Analysis

Middle Office Review: Middle Office Target state vs. Middle Office current state analysis

The Derivative Middle Office: Middle Office Derivatives Business Regulations

 

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