The internal audit process utilizes risk assessments in order to identify those functions and areas of bank operations that pose the most significant risks to strong and efficient bank performance. From that risk assessment, our internal auditors can develop a program specific to your bank including, obtaining an understanding of internal controls in place within the institution over key business processes and how the organization’s personnel function under existing controls and manage their assigned responsibilities. The adequacy of existing controls is evaluated through performance of internal audit procedures in the various operational areas of the institution.
Specifically, internal audit assumes the following responsibilities within our client institutions:
- Evaluate the internal control system to verify it is properly designed, functioning as planned and updated to meet changes in operations.
- Evaluate operational and administrative control procedures.
- Review compliance with the institution’s operating policy statements.
- Communicate to the Audit Committee and/or Board of Directors the frequency of the internal audit schedule and the results of audit work for their evaluation and approval.
- Perform special projects upon request of the Board of Directors and/or Audit Committee.
- Coordinate internal audit work with external auditors upon direction from the Board of Directors and/or Audit Committee.
As an alternative to a full-scope internal audit for financial institutions that have personnel specific to this area, our staff will train your employees and provide them with a shell internal audit policy and programs to utilize in auditing various areas. For any areas in which the personnel may not be independent, our staff may, upon request, perform these procedures. Continuous training and review of internal audit work papers prepared by your staff may also be performed.