In tough economic times internal audits take on new importance
Recently the American Institute of Certified Public Accountants (AICPA) and the Public Company Accounting Oversight Board (PCAOB) sent out alerts urging business leaders to avoid cutting back on their internal control efforts in response to these tough economic times.
Internal bank audits are even more essential now because of possible pressures to make things look good and the temptations for fraud, the accounting boards suggested. If you need support for your internal audit team because of cutbacks or if you are looking to outsource the entire process, we have banking-industry experts who can help.
Customized internal audit services and solutions
Prior to joining the firm, they served financial institutions in a number of capacities. Now they are on the Plante Moran internal audit team that serves hundreds of banks. They will draw on that experience and listen closely to you so they can help you develop an internal audit program designed to meet the specific needs of your bank.
Our general approach will be to help you develop an internal audit process that manages your risk while making sure that your processes and procedures comply with regulatory demands, including the Sarbanes-Oxley Act and the new COSO requirements.
A risk assessment sets the tone
We will begin by conducting a formal risk assessment of your bank. This process considers various factors including regulatory expectations, growth, changes in the types of products offered, direction from management and your audit committee, audit results from the prior year, and industry changes.
Our internal audit services methodology focuses on processes and procedures as well as transactional-based testing. Understanding and evaluating the design of the processes and procedures is essential to provide an evaluation of the control environment. In addition, a balance of transactional-based testing is necessary to validate that the processes and procedures are functioning effectively.
Our regulatory-compliant, risk-based solutions to your internal bank audit needs will provide in-depth, fact-based results directed towards improving your internal control environment concurrent with maximizing operational efficiency and effectiveness.
Report with suggestions for improvement
You will appreciate our bank audit experience when it comes to our reports. We will compare your processes and procedures to “best practices,” and where we find areas of weakness we will suggest ways to improve.
Each internal audit includes the appropriate planning, execution, and reporting along with professional standards-based work papers and supporting documentation.