Khan Bank’s Financial Management department oversees the development and system wide implementation of bank’s accounting policy. The department oversees and monitors accounting operations of 500 branches, consolidates the system operational reports, arranges for quarterly reviews and annual audits of bank financials by independent auditors and ensures public disclosure of bank financial results.       

The Bank ‘s financial statements are developed and reported in compliance with IFRS ( International Financial Reporting Standards).   Khan Bank pursues the following laws and procedures in its accounting policy: 
 

1.    Banking Law of Mongolia

2.    Accounting Law of Mongolia

3.    Corporate Tax Law of Mongolia    

4.    Bank of Mongolia Accounting Procedures (approved on 30 October, 2003);

5.    Khan Bank Accounting Procedures (approved on 17 September, 2004);

6.    Khan bank Teller Operations Procedures (approved on 15 June, 2006);

7.    Other respective legislations;

 

Daily accounting tasks are managed by Senior Tellers at bank sub-branches and by Chief Accountants at branches.   Trainings for Senior Tellers and Chief Accountants are organized on annual basis. The Financial Management department by the Chief Accountant Ms. Sh.Ulzii-Ayush closely cooperates with the Accounting Control and Planning and Analysis departments. All three departments report to the Chief Financial Officer of the Bank. 
 

Internal Audit department (IAD) of Khan Bank directly reports to Board Audit Committee.   
 

Main objectives of IAD are to: 
 

Internal Audit department (IAD) of Khan Bank directly reports to Board Audit Committee.   
 

Main objectives of IAD are: 
 

To provide the Bank management team with prompt information that supports efficient business operations, and to identify, prevent and mitigate violations and shortcomings.
 

Main responsibilities of IAD: 
 

 IAD conducts regular audits and examinations, the scope of which include identification, prevention and mitigation of potential risks from deposit, lending and other bank operations.

All bank departments, branches and sub-branches are audited at least twice a year through regular and special audits.   Main areas covered by the audit are cash and valuable items, deposits and loan products, accounting, customer service, marketing, and management. In addition to these regular on-site audits, the department carries out the monthly distance audits at the system level ( BANCS)

IAD is responsible for evaluation of bank’s internal control systems; identification of bank unit’s strengths and weaknesses through on-site and distance audits; evaluation of the compliance with Khan Bank policies procedures and other respective laws and regulations by bank staff; identification, assessment, prevention and mitigation of risks.