Internal Audit Services

 

Service Overview

The Internal Audit Services include the ongoing assessment of the system of internal controls and operating procedures of all functional areas of the financial institution.  The principal element of the assessment is to determine, through a risk-based approach, if there are sufficient controls and procedures in place to safeguard customer and financial institution assets from material loss through fraud or employee errors.  Significant control deficiencies noted are communicated to Management and the Audit Committee with specific suggestions or recommendations to reduce the risk and improve the internal control environment or other operational procedures.   

Provided below is a listing of functions within each area of the institution’s operations that may be subject to the Internal Audit procedures:   

  • Loan Operations
  • Deposit Operations
  • Teller/Branch Operations
  • Accounting Operations
  • Wire Transfer Operations
  • Treasury Operations
  • Investment Securities
  • Information Technology/Network Operations
  • Internet Banking Operations
  • Interest Rate Risk/ALCO Review
  • Trust Operations and Administration
  • Retail Sales of Non-Deposit Investment Products Services
  • Insurance Company Operations
  • Finance Company Operations
  • Secondary Marketing Operations
  • Correspondent Bank Operations
  • Regulation F Review
  • ARM Rate Adjustment Review
  • Payroll Operations

A report is issued to the Audit Committee of the Board of Directors and Senior Management at the conclusion of each review segment.  The report addresses each of the areas reviewed, disclosing any observations of significant internal control or operating procedure deficiencies, and also provides specific recommendations of action to be taken for each of the items noted.  Additionally, a follow up review of previous audit comments and Management’s responses to determine if corrective action has been taken and the results of such review will be reported to the Audit Committee and Senior Management.   

The Internal Audit and other review services are performed on either an outsourcing or partnership basis, that works best for the client.  The procedures include reporting, workpaper management, interaction with Bank Management and the Audit Committee of the Board of Directors.  Work is performed in accordance with the guidelines specified in the Interagency Policy Statement on Internal Audit and Internal Audit Outsourcing, and The Gramm-Leach-Bliley Act.   

Benefits to you?   

  • Early identification of potential high risk situations or control weaknesses
  • Improved operational efficiencies
  • Ability to focus on your core business

Risk Assessments

Campbell & Associates, Inc. can assist Management in completing a risk assessment of the organization. 

The risk assessment should be designed to focus on the business risk profile, reflecting specific concerns of Management and the Audit Committee, in order to determine the global risks of the organization, and to customize the internal audit approach to the particular risks and needs of the Bank.   

Benefits to you?   

  • Provides for an efficient and effective Internal Audit program
  • Satisfies regulatory requirements and expectations

FDICIA and Sarbanes Oxley Section 404 Assistance

Campbell & Associates, Inc. can assist management in developing a system to provide for the required elements of FDICIA and Sarbanes Oxley Section 404 related to the requirement to document and perform testing related to their own assessment of the adequacy of the internal control structure for all operational areas as well as controls over financial reporting. 


Audit Committee Training

Effective corporate governance and internal controls form the foundation for a bank’s system of risk management.  

To help the Board and Audit Committee members meet their responsibilities to set the tone regarding their corporation’s risk appetite, the professionals at Campbell & Associates, Inc. can provide guidance or formal training on the components of an effective risk management program. Oversight of an effective internal control process will provide a reasonable expectation directives will be followed.  

Benefits to you?  

  • Assists Board members with their understanding of their fiduciary responsibilities
  • Help the Board and Management guard against fraud and financial mismanagement
  • Control potential operational, legal, compliance, and reputation risks to the institution
  • Focus attention on high-risk and emerging-risk areas while ensuring effective preventive and detective controls over low-risk areas
 
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