Internal Audit is responsible for auditing Danmarks Nationalbank’s activities or, more formally, for the “daily audit of all the bank’s books”. In practice, the audit responsibility involves performing financial audits of the bank’s financial statements and foundation accounts as well as operational audits of all significant and risky areas of the bank and the Danish central government debt management. The audits are conducted in cooperation with the bank’s external auditor, Rigsrevisionen (the National Auditors) as well as the European System of Central Banks.

Examples of specific tasks performed by Internal Audit:

  • We prepare an audit plan for the year, which is approved by the Committee of Directors, and present the conclusion of our audits to the Committee of Directors every month.

  • Our audits include Danmarks Nationalbank’s financial statements and the central government debt management.

  • We conduct operational audits of the bank’s most important and risky areas, including outsourcing, following a risk-based approach and comprising an assessment of inherent risks and internal controls, procedures and system support.

  • We conduct audits in cooperation with the ESCB and other central banks on the instructions of the ESCB’s Audit Committee.

  • We perform monthly inspections of holdings and portfolios in accordance with the regulations of Danmarks Nationalbank.

Chief Internal Auditor Helle Munk Miltoft answers three questions about the work in Internal Audit:

How do you contribute to Danmarks Nationalbank’s work to ensure a robust economy?

“This year’s audit plan has been based on a risk assessment of the bank’s risks and activities with a view to auditing all significant and risky areas of the bank. One of Danmarks Nationalbank’s primary tasks is to ensure efficient and robust payment systems. Therefore, we audit the bank’s IT infrastructure and systems on an ongoing basis to contribute to a robust control environment and to confirm the effectiveness of the internal control procedures. We also monitor on an ongoing basis the project that will migrate the settlement of Danish kroner from Kronos2 to the European payment and securities settlement platform TARGET Services in 2025.”

What makes your area particularly exciting?

“Internal Audit is particularly exciting because our audit mandate covers all activities in Danmarks Nationalbank. Our work therefore provides us with opportunities for broad interaction with our colleagues and for gaining insight into all business areas and risks across the bank as a whole.

The department offers unique societal tasks embracing both existing processes and the bank’s most important projects. Furthermore, the audit of Danmarks Nationalbank is singular and without comparison. We seize a unique opportunity to work with the ESCB’s Audit Committee, Rigsrevisionen and other central banks on the most effective and value-creating audit approach.”

What opportunities and challenges are there in your area?

“The staff in Internal Audit can influence their own tasks and competence development to a great extent. The tasks require both generalists and specialists, and the individual employees contribute proactively to their own specialisation and professional immersion in areas that are of particular societal relevance to Denmark.

The audits may be complex because the bank performs specialised tasks. The challenge is met through delegation of network and specialist area responsibilities, sharing of experience and strong audit tools, which also allow for continuous learning and competence development.”

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