Managment Audit

Allama Iqbal Open University Islamabad
(Department of Business Administration)
ACKNOWLEDGEMENT
All acclamation to Allah who has empowered and enabled

me to accomplish the task
Successfully first of all I would like to thank our Allah

Almighty who really helps me in every problem during the
project. I would like to express my sincere and humble
gratitude to Almighty who’s Blessings, help and guidance
has been a real source of all my achievements in my life.
I would like to admit that I completed this project due to

parents who pray for my success.
I also wish to express my appreciation to my supervisor

Mr. Younis who helps me a lot and introduce me to new
dimension of knowledge.
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DEDICATION
My project is dedicated to my beloved Parents,

teachers,
brothers, sister and all of my well wishers.
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TABLE OF CONTENTS
Page. No
• Introduction 05
• Definition of Management Audit
06
• Objectives of Management Audit
07
• Practical Study on Muslim Commercial Bank of Pakistan
08
• Background & History of Bank
09
• Vision And Mission 10
• Date Bases used in MCB
11-15
• Software uses by MCB
16-17
• Information System of MCB
18-27
• Remittance System
28-29
4
• Communication Medium uses by MCB
30-36
• Recommendation
37
• Conclusion
38
5
MANAGEMENT AUDIT
Introduction
So far we have confined ourselves chiefly to the rights and duties of

the auditor arising either out of the written agreements between him
and his clients or under statute and case laws. But the latest
developments which are visible in the field of auditing have made all
the more conscious to prepare the auditor to adopt the techniques and
procedures so as to enable him to probe more deeply and intelligently
into the internal organization of business concern that heretofore. He
is confined to examine whether the balance sheet and the profit and
loss account have been properly drawn up as per the provisions of the
companies’ ordinance and that they exhibit a true and fair view of the
state of affairs of the company. He can do all this as his duty of
conventional routine and nothing more.
But the statutory auditor is not expected to go into the

question whether the policies, which have been laid down by
the Management, are being carried out in their proper
perspective and in the right direction. He has not to advise
and suggest the management the ways and means through
which the profits of the concern can be maximized and wastes
avoided. Thus, he is not required to point out the changes and
improvements on the system of running the business, which
may produce better results in future. He has no legal right to
do all this.
It is every often argued that the internal auditor is bestowed with the
task stated above. But in practice he is confined only to the financial
aspect for the prevention and detection of errors and fraud or
misappropriations and manipulations. Undoubtedly, all the activities
and operations major or minor in nature, of the business have financial
implications. For this, the financial auditing cannot serve the purpose.
It cannot cover the management auditing as the management audit
can prevent financial loss before it occurs, while the financial audit can
only establish the fact that a loss has been made.
Today, the business has become so large and complicated that most of
the unhealthy situations are attributable to the basic defects of the
organizational structure and ineffective type of the organization. The
firms of professional accountants are being called upon to render
management consultancy services. The object of management
consultancy services is to improve the operations of an organization.
6
The presence of management service amounts to a practical

guarantee that the work will be satisfactory. It has to offer
recommendations and its job is over.
Thus, Management audit is a new concept and goes beyond the

conventional audit. It is actually a comprehensive and a critical review
of all aspects of management. It is concerned with the appraisal of the
efficiency of management. It can be said to be an expansion of internal
audit and the idea has developed recently.
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Definition of Management Audit
T.G.Tokhe
“The Management Audit has been defined as a comprehensive

critical review of all aspects of process of Management”.
William P.Lenoard
“A comprehensive and constructive examination of an

organizational structure of a company, institution or branch of
Government, or of any component thereof, such as a division
or debarment and its plans and objectives, its means of
operations and its use of human and physical facilities”.
These definitions have pointed out that the management audit deals
with the management process as a whole. It facilities the most
effective relationship with the outside world and the internal efficiency
of the business.
A long but a comprehensive definition has been given by L.R Howard

as given below:
(3) Leslie R. Howard.
“Management audit is an investigation of a business from the

highest level downwards in order to ascertain whether sound
management prevails throughout, thus facilitating the most
effective relationship with the outside world and the most
efficient organization and smooth running internally.
(4) Taylor and Perry
“Management audit is a method to evaluate the efficiency of

management at all levels throughout the organization, or more
specifically, it comprises the investigation of a business by an
independent body from the highest executive level to downward,
in order to ascertain whether sound management prevails
throughout and to report as to its efficiency or otherwise with
recommendations to ensure its effectiveness where such is not
the case”.
From the above definitions it would be evident that the management

audit is an examination, scrutiny and appraisal of the plans, policies,
8
objectives, and means of operations and the use of physical facilities.

This reviews the policies and actions of the management in turn. It will
normally be so revealing as to encourage action of a perspective
nature that will put into effect the objects for which it was originally
demanded.
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Objectives of Management Audit
1. To reveal defects or weakness in any of the elements

examined by the management auditor and to suggest
improvements to obtain the best possible results of the
operations of concern.
2. To ensure that most efficient administration of the

operations essential for smooth running of a business.
3. To obtain the efficiency and effectiveness of the

management.
4. To suggest ways and means for the achievement of

objectives and targets set forth by the management.
5. To assist at all levels of management in the effective

discharge of their duties and responsibilities
6. To facilitate the most effective relationships with the

outside world and the most efficient organization and
smooth running internally.
7. To evaluate performance by relating inputs (human and

physical both) with outputs.
8. To assist the management to establish good relationship

with the staff to enable it to elaborate the duties, rights
and liabilities of the entire personnel.
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INTRODUCTION TO THE BANK

MCB formally known as Muslim Commercial Bank Limited was
incorporated by the Adamjee Group on July 9, 1947. The bank was
established with a view to provide banking facilities to the business
community of the sub-continent. The bank was nationalized in 1974
during the government of Zulfikar Ali Bhutto.This was the first bank to
privatized in 1991 and the bank was purchased by a consortium of
distinguished Pakistani corporate groups led by Nishat Group. As of
June 2008, the Nishat Group owns a majority stake in the bank. During
the last fifteen years, the Bank has concentrated on growth through
improving service quality, investment in technology and people.
In 2005, the management of the bank changed its name from

Muslim Commercial Bank Limited to MCB Bank Limited (MCB). The
reason was to explore international markets for the bank as it was
facing resistance, especially from Western Countries to avail a license,
which partly had something to do with the banks name. Later, MCB
became the fourth Pakistani company to be listed on the London Stock
Exchange.
MCB is one of the leading banks of Pakistan with a deposit base

of about Rs. 280 billion and total assets of around Rs.300 billion.
Incorporated in 1947, MCB soon earned the reputation of a solid and
conservative financial institution managed by expatriate executives. In
1974, MCB was nationalized along with all other private sector banks.
The Bank has a customer base of approximately 4 million and a

nationwide distribution network of 1,026 branches, including 8 Islamic
banking branches, and over 300 ATMs, in a market with a population of
60 million.
During the last fifteen years, the Bank has concentrated on

growth through improving service quality, investment in technology
and people, utilizing its extensive branch network, developing a large
and stable deposit base.
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THE VISION AND MISSION STATEMENT
Vision statement:
Challenging and changing the way You bank
Mission statement:
MCB bank’s team, of committed professionals is dedicated to
maintaining long-term customer relationships through outstanding
VALUES OF MCB
service and conveniance
Trust
We are the trustees of public funds and serve with integrity &
commitment. Ethical behavior is of critical importance to us. We adopt
full compliance with internal and external policies and procedures,
operating within the legal framework
Customer Focus
We continuously seek to exceed our customer’s expectations, forging and
maintaining long term relationships
Innovation
We strive to be the market leaders in innovative products and services
offering customized financial solutions with flawless execution
Teamwork
The diversity of our people is our strength. We inspire and challenge each
other – working together to achieve synergy
Achievement
Our people are our most valuable asset. We are committed to a result
oriented culture. Our goals are clear and merit is the only criterion for
reward
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Social Responsibility
As responsible citizens we contribute to the social welfare of the
community we live in
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DATABASES USED IN MCB
FOLLOWING Databases used in banks

1 Visual basic
2 Crystal report
3 Access
4 Sq server
5 Dot—net
Butt MCB bank used following databases
M/s ACCESS
Access Database Design & Programming takes you behind the details
of the Access interface, focusing on the general knowledge necessary
for Access power users or developers to create effective database
applications. When using software products with graphical interfaces,
we frequently focus so much on the interface that we forget about the
general concepts that allow us to understand and use the software
effectively. In particular, this book focuses on three areas: Database
design. The book provides an enjoyable, informative overview of
database design that carefully shows you how to normalize tables to
eliminate redundancy without losing data, Queries. The book examines
multi-table queries (i.e., various types of joins) and shows how to
implement them indirectly by using the Access interface or directly by
using Access SQL. Programming. The book examines the VBA
integrated development environment (IDE). It then goes on to provide
an excellent introduction to Data Access Objects (DAO), ActiveX Data
Objects (ADO), and ADO Extensions for Data Definition and Security
(ADOX). These sections serve as a handy introduction and primer for
basic database operations, such as modifying a table under program
control, dynamically adding and deleting a record, and repositioning a
record pointer. The concluding chapter focuses on common
programming problems, such as computing running sums and
comparing two sets. Unlike other Access books that take the long,
detailed approach to every topic of concern to Access programmers,
Access Database Design &Programming instead focuses on the core
concepts, enabling programmers to develop solid, effective database
applications. This book also serves as a 'second course' in Access that
provides a relatively experienced Access user who is new to
programming with the frequently overlooked techniques necessary to
develop successfully in the Microsoft Access environment. Anyone
interested in learning Access in depth, rather than just scraping the
surface, will enjoy and benefit immensely from reading this book.
15
The Banking System provides access to eight basic functions of

banking. These include:
Bank Accounts
Printing MICR Information
Checks
Deposits
Adjustments
Check Register
Check Reconciliation
Recurring Payments
Batch Posting
The Check Writer tabbed dialog form provides access to the first five
banking functions.
Bank Accounts
The Bank Accounts form is used to enter bank account information.

You can enter multiple accounts per bank, or enter accounts for any
number of banks. You can also set your starting check number, if the
account is a checking account, as well as view the current bank
balance and other account information.
Printing MICR Information
If you purchase the optional MICR Font (included for free with the
Developer version), you can enter and print MICR information on your
checks. This is really only used if you will be printing to blank check
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stock. MICR stands for Magnetic Ink Character Recognition. Banks use
this to automatically process checks. If you will be printing your own
checks with MICR information, you will also need to use magnetic
toner. This produces a MICR font that is readable by your bank. If you
are interested in printing MICR information, we can provide you with
companies that sell Magnetic toner.
Once the font is installed and registered in Windows, Yes! I Can Run My
Business can locate the font and display MICR information on the MICR
Line in the Bank Accounts form. This information is then displayed on
the Deposits, Checks and Adjustments forms. When your print any of
these items, you have the option to print the MICR information.
Checks
The Checks form allows you to create and print checks. Choose the
bank account you want to work with and enter check information.
Create Check Stubs for Check Printing and Mailing

Handle VOID/Spoiled Checks
Enter Multiple GL Account Splits include Negative Amounts
Search by Check Number, Date, Payee, or Memo Field Data
Control Passwords for Reprinting or Unvoiding Checks
Automatically Display Bills Used to Create Bill Pay Checks
Duplicate Any Check
Several options are available for printing checks. You can print checks
in several positions, as shown in the figure below. You can also select
from different check types, such as Window, Standard, Pre-Printed or
Plain Paper checks.
17
If you purchased the optional MICR Font and have magnetic toner, you
can print the checks on blank paper. Otherwise, you can use virtually
any type of check stock to print the check data to pre-printed checks.
Just customize the check report to print the data on your pre-printed
check. You can also purchase pre-printed checks through Database
Creations, Inc. that can be used with Yes! I Can Run My Business.
Deposits
The Deposits form allows you to enter deposits for any bank account
that you have. You can also create detailed deposit slips describing the
contents of a deposit. Deposit slips can automatically be created from
checks received through the Invoice system.
Adjustments
The Adjustments form is used to create a number of different types

of adjusting transactions. You can setup your own transaction types
that are specific to your business needs. These can include withdrawal
type transactions such as bank charges or fees, or deposit type
transactions, such as interest earned or wire transfers.
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Check Register
The Check Register allows you to view or print all the transactions
that affect a particular bank account. This register is similar to the
check register you would keep for your own personal checking
account. It is easy to read and move through. The register will also
display voided checks and a cumulative balance.
Check Reconciliation
The Check Reconciliation form is used to reconcile each bank account. You can view
Outstanding, Cleared or All Transactions as well as the current checkbook balance and
current Bank Balance. The form calculates the statement difference and outstanding
balance. It will also list the number and sum of outstanding checks, payments, deposits
and credits.
You can easily view the check for any item by pressing the check button.
Features of this form include:
Visual Check Register with Declining Balances

Automatically Excludes Void Checks
Displays All Transactions in Order of Entry
View/Print Running Balances
Easy to Use Check Reconciliation System
Works by Checking Off Reconciled Transactions
Enter Adjustments While You Reconcile
Recurring Payments
The Recurring Payments option allows you to enter standard

payments that occur on a regular basis on a specific account. You can
enter the payment frequency (Monthly, Daily, Weekly, and Quarterly,
Annually), GL and payment information for each recurring payment.
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A separate form allows you to view all recurring payments and gives
you the option to create checks for all or only selected checks.
DATA BACK
All branches of MCB are inter connected with each other and data of
one branch is available at another branch butt there is some personal
data of each branch and after 15 days each branch save their data in
CDs and these CDs are kept by branch Manager which is responsible of
whole branch and after one year one copy of CDs send to head office
and One copy of date in sent to warehouse and also one copy is kept
by branch Manager
SOFTWARE USES BY MCB
Mostly Pakistani Banks used the following Software which Are

the following
1 Finnone
2 Pibus
3 Tcl
4 Kapettee
5 Sql
6 Vb –Net
MCB used the Following software.
1 Finnone
2 Sql
3 Vb-NET.
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FINNONE
BANKING MANAGEMENT SOFTWARE

FINNONE TM SUITE
Specific This complete Banking
Management suite, FinnOneTM, has
been specifically designed to cater to
the technology needs of the banking
and financial services industry. This
Banking Management suite consisting
of applications provides operational
and decision-making support to the
fast changing financial services
industry. The suite covers applications
spanning fund and fee based services,
including the FinnOneTM General
Ledger module, with which all other
modules are integrated. Each module of FinnOneTM is an independent unit in
itself. Thus, companies with limited services can also opt for select modules
from this complete Banking Management suite.
The various modules of FinnOneTM Suite are as follows:
LOS - Loan Origination System

Lending - Installment, Auto, Housing, Consumer, Mortgages
FAS - Finance Against Securities
Collections - Web-based Collections & Recovery Management
PDCMS - Post-Dated Cheque Management System
GL - General Ledger
LiquiDeposits - Term/ Recurring/variable deposits, Cash certificates
CCAPS - Credit Card Application Processing System
To know more about our expertise and how we can help you for your software
requirements, please feel free to
INFORMATION SYSTEMS OF MCB.
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Information is the most important element of Banking. Hence MCB has

made all out efforts to create such a flow of Information so that its
stakeholders are provided with the required information only. Secrecy
of Information is also very crucial for the effective working of Bank.
MCB has made the following systems which can be called Integral
Systems of Core Banking Functions which run its day to day banking
Functions:
 Multi-currency Interbranch Banking System.

 General Ledger Banking System.
 Remittances system.
 RTC System.
 ATM & Online Systems.
IT RELATED PRODUCTS OFFERED BY MCB.
 ATMs
 DEBIT CARDS
 SMART CARDS
 MOBILE BANKING
 CALL CENTRE
Multi-currency Inter Branch Banking System.
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Multi-currency Inter branch Banking Systems (MIBS) is software

designed in COBOL Computer language which has been specially
designed by the Information Resource Management Systems in order
to keep MCB abreast with the modern banking facilities which should
be provided to its customers as a modern and progressive Bank.
SYSTEM’S FUNCTIONAL OVERVIEW:
This system is password protected, each user has its own identification
and password, which can be changed at will. Each user has different
authority levels for different functions and according to the Bank’s
Passing & Signing Schedule.
If anyone tries to break the security, the software will cease to operate
and will not allow the trespasser to enter into the system.
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24
25
The MIBS Main system shell consists of a DEPOSIT SHELL MENU which
is the first interface after the software has been loaded. It consists of
many options consisting of Daily working options, back up options,
salary options & Mail Systems.
DAILY WORKING:
Daily branch working for Retail Banking included Account opening,

Closing, Cheques Processing, transaction posting, various inquiries,
Branch balancing and finally File Clearance for the next day. Product
Calculations and Markup, Daily Reports that are printed and after
verification from Manager are filed for the purpose of Audit reviews for
later reference.
DAILY PROCEDURE:
1. Daily transactions
2. Summary & Balancing (ATM & Cross Branch Reports)
3. Internal Back up
4. Back up before Product (BBP)
5. Product Calculation
6. Day’s Journal listing
7. Backup after product (BAP)
8. Backup cheque files
9. Release all printing reports
10. Daily
file Clearance
11. Jotting
of accounts
PERIODIC CLOSING:
WEEKLY:
Jotting Report is produced for all accounts. Running Finance is reported

from Master Summary.
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MONTHLY:
Jotting Report is produced for all accounts
Running Finance Report contains the Running Finance position of the
Branch after deducting Central Excise Duty.
QUARTERLY:
Same as monthly
Running Finance Report contains the Running Finance position of the

Branch.
AUDITOR’S VIEW:
Sufficient security levels are provided in the system for access to

system and within the system. Also security is built-in for cross branch
transaction processing.
Proper verifications and authentication of reports signed by responsible

staff is required.
Proper filing of these reports is required for successful operation.
The disaster recovery, back up and fall-back procedures are ensured in

the System, this will certainly depend upon the procedures and
logistics of the back up tapes to the vaults arranged for this purpose.
CROSS BRANCH TRANSACTIONS:
When the Cross branch is offline, CBT will not be allowed. When it is
online, the conditions are first checked the cross branch signatures can
be viewed on the screen and then the transaction is passed. Cross
Branch Reconciliation reports are available.
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ADHOC REPORTS:
Additional reports are provided within the system, which can be

printed by the branch for day-to-day business requirements. It is
important for the branch managers and senior staff to know what and
when to utilize these reports for the ease of their work and safety of
their precious time.
ONLINE REQUIREMENTS:
Since the system is On-Line Real time, it requires that the balances at
the Host must be exactly the same as in the Branch.
If the Branch’s telephone line is down for some reason, the branch will
be working in Offline mode but its transaction will be stored in a file in
the branch server and as soon the branch’s line becomes active, the
pending transactions from the branch will be immediately fired to the
HOST to update the balances there.
In the Evening Closing the Branch balances must be matching with the
Central Host machine at IRMD. The branches are allowed to set ATM
inactive temporarily during the evening closing so that during this time
no transactions can be made on branch accounts. Once the branch is
balanced, immediately the ATM services must be restarted.
HELP-DESK PROCEDURES:
For all problems relating to MIBS, help desks are established, also ATM
Help desk is Operational. The staff at these Centres is specially trained
for resolving day-to-day problems.
These IT Help Centers are located in Karachi, Lahore and Islamabad

and there is local UAN number of all three i.e. 111-000-777
Rests of the branches are controlled by specially trained staff posted at

REGIONAL OFFICES.
MANAGERIAL CONTROLS:
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Managers and supervising staff have to review the critical reports on

the daily basis to make sure that the branch is balanced itself and with
other branches. ATM cash is sufficient and CASH IN ATM is balanced
with GENERAL LEDGER.
Above is Menu of MIBS Shell Selection Menu when the Branch is offline
which can be due to any reason i.e Branch line failure, hardware
problem or error in central Host in Karachi
GENERAL LEDGER BANKING SYSTEM
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DAILY WORKING:
All GL vouchers generated are posted during the day. These are mainly
of following types:
• Originated by Branch
• Originated By Head Office
• Responded By Branch
• Responded by Head Office
All the advices of GL have specific TRANSACTION CODES which have to

be punched in the system so that the relevant description can be
recorded. This GLBS program is also Password protected
At day end after all transactions have been posted, Internal Back up
has to be taken. Then branch closing and Daily Closing has to be done.
After CASH IN HAND has been balanced and confirmed by the Manager
the rest of the system options are operated. Cash In Hand Summary is
taken and all reports like CLEAN CASH, HEAD OFFICE ACCOUNT
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STATEMENT, DAILY GENERAL LEDGER STATEMEMNT, is printed and

FILE CLEARANCE is done.
All reports should be duly checked and signed by Manager/Authorised

Officers before leaving the branch.
MONTHLY CLOSING:
After daily working has completed and all provisions of accounts have
been applied by the Manager, there is MONTHLY CLOSING MENU in the
MAIN MENU of GLBS SHELL which must be operated.
YEARLY CLOSING:
At year-end, there is double clearance of Cheques on the part of SBP

which means that the last day’s balances of MCB and SBP have to be
cleared the same day. After clearance of cheques from SBP the YEARLY
CLOSING MENU is operated. This Menu must be operated AFTER the
DAILY CLOSING MENU AND MONTHLU CLOSING MENU has been
operated.
REMITTANCE SYSTEM.
31
This system is specially designed and installed in those branches

where Remittances i.e Demand Draft, Pay Order, Mail Transfer and
Cheques for Collections is very heavy in transaction number and work
load in not manageable by even two staff.
This system is also Password protected and requires ID and Password

of the employee who wishes to LOG IN to the system. This is helpful to
determine the User ID of specific remittance instruments made in
order for future check.
1. DAILY WORKING:
It consists of four options:
 DAILY POSTING
 SUMMARY
 LISTING
 CREATE GL DATA
 FILE CLEARANCE
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AMENDMENT MENU:
This is special menu which can only be accessed within the RSBS menu
by the password of MANAGER.
DUPLICATE PRINT:
Duplicate Instrument can also be issued by same procedure by the

password of Manager only.
REVERSAL ENTRY:
Reversal entry is only allowed in the PAYABLE Module but not allowed
in ISSUANCES Module, it consists of following options:
 Delete
 Change Branch Code
 Change Serial Code
DAILY PROCEDURE TO RUN:
1) DAILY WORKING
2) SUMMARY
3) LISTING
4) INTERNAL BACKUP
5) CREATE GLDATE
6) BACK UP BEFORE CLEARANCE
7) FILE CLEARANCE
8) BACK UP AFTER CLEARANCE
9) EXIT.
COMMUNICATION MEDIUM USED BY MCB MCB ON THE

INTERNET.
33
The Internet is a worldwide computer network that connect hundreds

and thousand of network . These link connect the MCB with their
Customers and now in this modern period of banking the customers of
MCB now checked there account through internet and also check there
balance through internet and also opened there account through
internet. Banking sector got lot of advantage from this Internet facility
and the customer of MCB are also applying for the Debit and Atm card
after applying though Internet.
MCB was one of the first Pakistani Banks which made its presence on
the Internet by creating a website www.mcb.com.pk. This site is was
made and is maintained by a MNET Services Pvt Ltd, which is a fully
owned subsidiary of MCB.
Before this year the site was very normal one which gave only
Information regarding MCB ATM locations and Branch Networks,
Foreign Exchange rates and Press releases.
MCB USING EXTRANET
Many organization have there own networking system through which

very person in office can access to the access person date on
computer like these organization MCB have there own system of
networking in branch and they have there own software to that every
employee of organization can access to data :for example if we go to
bank and want to know about our balance we get can this information
from any employee which have computer this has all happened
through extranet facility
MCB VIRTUAL BANKING.
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MCB Virtual banking is a Major Initiative undertaken by MCB which is a

Special portal on the Internet which allows the following services on
the Internet:
 FUND MANAGEMENT
 FUNDS TRANSFER
 BILL PAYMENT
 CHEQUE BOOK REQUESTS
 BANK ACCOUNT STATEMENT
 STANDING ORDERS.
It works by first of all registering customers in the site by allotting

them ID and PASSWORDS so that customer secrecy is maintained.
There are two types of users, INDIVIDUAL and CORPORATE.
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The MCB VIRTUAL INTERNET

BANKING software is provided
by Singapore based SYSTEMS
ACCESS called SYMBOLS VER
8.0.
Detail of MCB SYMBOLS

software is given in pages to
follow.
MCB MOBILE BANKING.
36
This is also a unique feature of MCB Banking that they allow there
customers which have Mobile phones to register with the Bank and
have access to following services which is totally FREE:
 Account Balance
 Cheque book Request
 Mini Account statement.
Initially this service was available only to MOBILINK customers but now
all MOBILE SERVICE PROVIDERS have made alliance with MCB and
customer of any mobile company who is also MCB account holder can
also access these great services absolutely free.
MCB ATM CARD GOES GLOBAL.
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This is one of the most exciting feature of MCB ATM CARD that first it
could only be operated within PAKISTAN but since MCB has ventured
with MAESTRO & CIRRUS the MCB ATM CARD is operational at any ATM
having one of the above two logos any where in the world. There are
about 464000 thousands such ATMs around the world.
A nominal fee is charged which is the service fee of foreign ATM used.
This system is linked with MCB ATM System which is maintained MCB
IT Department in Karachi which is linked to MAESTRO & CIRRUS
through IBM AS-400 computer.
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MCB CALL CENTRE
MCB Call Centre is recently launched which gives phone services to its
valuable customers if they are facing some problems. They get
connected to MCB CALL CENTER which is located at MCB Head Office
Karachi.
Its UAN number is 111-000-622.
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MCB SMART CARD.
MCB SMART CARD is the name of MCB’s DEBIT Card which is a charge
card.
Customers having this card can use card at various outlets instead of
carrying cash. This system works by MCB having alliance with al these
POS by supplying them Machines through which the card is run and
Amount is charged to the relevant account through MCB ITD Karachi
real time processing software.
Another feature of this card is that it can also be used as an ATM CARD
at all machines where MCB ATM is accepted.
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RECOMMENDATIONS AND FUTURE PLANS ABOUT THE IS
• Although Oracle has provided MCB with a highly customized

Information System to suit its business needs, the Financial
Control Division feels that Oracle GL has not been customized
enough to suit their needs according to their specific needs.
• Therefore one recommendation that is notable and must be

pointed out is that if the company purchases a new version of
Oracle GL, it should be further customized in a better way
with the specific needs of the Financial Control Division in
mind.
• System enhancements over time might also need to be

carried out that could involve upgrading the server, storage
and database systems.
• As for the future plans of the Company regarding the

information system, it seems that the company is satisfied
with the system and willing to retain it. It will purchase new
versions of the Oracle E-Business Suite as soon as they are
released.
• In the future, MCB also has expansion plans and is expected

to open branches and start operations in some foreign
countries also. When that happens, a great deal more will
need to be invested in the company’s information system and
it would remain to be seen whether the company would
continue using the current information system or switch to
some other information system.
41
CONCLUSION
• The Oracle E-Business Suite is a top of the line application

software used by businesses around the world.
• Oracle is a software company renowned for providing its

customers with excellent software’s that provide fast, easy and
efficient business information and support systems which play a
vital part in operational running of a business and coming up
with improved business solutions.
• MCB aims to keep its business in line with the top banks and
corporations of the country and therefore, it has chosen Oracle E-
Business Suite as the application software that manages and
supports its business applications.
• The Oracle GL has the important task of maintaining General

Ledger Balances of the bank from around the country and
generating reports and financial statements on a daily basis.
42

Managment Audit

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Managment Audit

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Allama Iqbal Open University Islamabad

(Department of Business Administration)

All acclamation to Allah who has empowered and enabled

Successfully first of all I would like to thank our Allah

I would like to admit that I completed this project due to

I also wish to express my appreciation to my supervisor

My project is dedicated to my beloved Parents,

brothers, sister and all of my well wishers.

• Definition of Management Audit

• Objectives of Management Audit

• Practical Study on Muslim Commercial Bank of Pakistan

• Background & History of Bank

• Vision And Mission 10

• Date Bases used in MCB

• Software uses by MCB

• Information System of MCB

• Communication Medium uses by MCB

So far we have confined ourselves chiefly to the rights and duties of

But the statutory auditor is not expected to go into the

The presence of management service amounts to a practical

Thus, Management audit is a new concept and goes beyond the

Definition of Management Audit

“The Management Audit has been defined as a comprehensive

“A comprehensive and constructive examination of an

A long but a comprehensive definition has been given by L.R Howard

(3) Leslie R. Howard.

“Management audit is an investigation of a business from the

(4) Taylor and Perry

“Management audit is a method to evaluate the efficiency of

From the above definitions it would be evident that the management

objectives, and means of operations and the use of physical facilities.

Objectives of Management Audit

1. To reveal defects or weakness in any of the elements

2. To ensure that most efficient administration of the

3. To obtain the efficiency and effectiveness of the

4. To suggest ways and means for the achievement of

5. To assist at all levels of management in the effective

6. To facilitate the most effective relationships with the

7. To evaluate performance by relating inputs (human and

8. To assist the management to establish good relationship

INTRODUCTION TO THE BANK

In 2005, the management of the bank changed its name from

MCB is one of the leading banks of Pakistan with a deposit base

The Bank has a customer base of approximately 4 million and a

During the last fifteen years, the Bank has concentrated on

THE VISION AND MISSION STATEMENT

DATABASES USED IN MCB

FOLLOWING Databases used in banks

Butt MCB bank used following databases

The Banking System provides access to eight basic functions of

The Bank Accounts form is used to enter bank account information.

Printing MICR Information

Create Check Stubs for Check Printing and Mailing

The Adjustments form is used to create a number of different types

Features of this form include:

Visual Check Register with Declining Balances

The Recurring Payments option allows you to enter standard

SOFTWARE USES BY MCB

Mostly Pakistani Banks used the following Software which Are

MCB used the Following software.

BANKING MANAGEMENT SOFTWARE

The various modules of FinnOneTM Suite are as follows:

LOS - Loan Origination System