Eureka! Institutional Repository

The internal audit constitutes the modern administration tool of banking institutions which evaluates internal procedures, indicate weaknesses in the functioning of the banks, provides consultation, thus, contributing significantly to the reduction of entrepreneurial and operational hazard. The internal audit of banks is of the at the most importance not only for the banks themselves, but also for the depositors and society at large in general.The banks constitute a determining factor of prosperity and development of society through the functions that they have. One of the most basic of their functions is the redistribution of wealth in society. The volume and complexity of transactions is particularly large with the result that the margin of error to be particularly high. For thisreason, it is important for complete transparency to exist in their mode of operation, and for integrity and responsibility in the management of money to be secured.The lack of an organized policy of risk management and the non-existence of a healthy system of internal audit could turn out to be painful and destructive for any economic organization. The internal audit with the implementation of modern models of control, constitutes a determining factor for the restriction of bank fraud and the unobstructed functioning of banking institutions. Simultaneously, bank fraud origination either within or outside the bank, causes serious repercussions both for the organization and the economy of the country. This study aims at broadening the internal control system in the domestic banks. The data collection was carried out, through questionnaires, which were send to 101 bank employees from the four biggest Greek banks.