Developing Integrated Internal Control and Audit Systems for Insurance and Banking Sector Compliance Assurance

• Author(s): Azeez Odetunde ; Bolaji Iyanu Adekunle ; Jeffrey Chidera Ogeawuchi
• Paper ID: 1708645
• Page: 393-407
• Published Date: 30-06-2021
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 4 Issue 12 June-2021

Abstract

In an increasingly complex regulatory environment, financial institutions such as banks and insurance companies face growing pressure to ensure compliance while maintaining operational efficiency. This explores the development of integrated internal control and audit systems as a strategic approach to strengthening compliance assurance within the banking and insurance sectors. Traditional fragmented compliance and audit frameworks often lead to inefficiencies, duplicated efforts, and heightened risk exposure. An integrated system, however, aligns internal control mechanisms with audit functions and regulatory requirements, enabling organizations to proactively identify, manage, and mitigate compliance and operational risks. Drawing upon the COSO internal control framework and key regulatory standards including Basel III, Solvency II, AML/CFT guidelines, and data privacy regulations this study outlines a model for designing and implementing cohesive internal control and audit systems. Emphasis is placed on aligning governance structures, leveraging data-driven audit tools, and utilizing modern technologies such as artificial intelligence, RegTech, and enterprise risk management platforms. These elements enhance real-time monitoring, automate compliance checks, and foster a culture of accountability and transparency across the organization. Challenges such as organizational silos, legacy IT systems, and resistance to change are also discussed, with practical recommendations for overcoming them. Case studies from leading financial institutions illustrate best practices and underscore the benefits of integration, including improved regulatory alignment, reduced compliance costs, and enhanced stakeholder trust. Ultimately, this advocates for a strategic shift toward fully integrated internal control and audit systems as a foundation for sustainable compliance and risk governance in the financial sector. Such integration not only supports regulatory adherence but also positions institutions to better withstand market shocks, maintain reputational integrity, and drive long-term value creation.

Keywords

Development, Integrated, Internal control, Audit Systems for Insurance and Banking Sector Compliance Assurance

Citations

IRE Journals:
Azeez Odetunde , Bolaji Iyanu Adekunle , Jeffrey Chidera Ogeawuchi "Developing Integrated Internal Control and Audit Systems for Insurance and Banking Sector Compliance Assurance" Iconic Research And Engineering Journals Volume 4 Issue 12 2021 Page 393-407

IEEE:
Azeez Odetunde , Bolaji Iyanu Adekunle , Jeffrey Chidera Ogeawuchi "Developing Integrated Internal Control and Audit Systems for Insurance and Banking Sector Compliance Assurance" Iconic Research And Engineering Journals, 4(12)