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#1270563 - 10/21/09 03:34 PM External Audit working with Internal Audit
Cornfed Turtle Offline
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Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Anyone have suggestions for blending internal audit with the financial statement audit? Have any of you been able to save some external audit fee expense with internal audit staff work?

In prior jobs, these have always been separate functions with internal audit providing almost no assistance other than, perhaps, risk assessment and the printing of the confirmations.

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#1270611 - 10/21/09 04:07 PM Re: External Audit working with Internal Audit Cornfed Turtle
Ready to Retire Offline
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Joined: Aug 2005
Posts: 2,313
Living in the land of Oz
I know that our external audit fess went down when I came on board as the internal auditor. This was, of course, after they started relying on my work instead of doing it themselves. Now they come in and take my audits and look at my sample and pick or two and re-audit those two. And for the last few years they haven't been doing that with the exception of my loan review. But they still only look at about 4 a year. I must mention that we outsource the loan review of our large commercial loans and they do look at that more closely.

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#1270647 - 10/21/09 04:31 PM Re: External Audit working with Internal Audit Cornfed Turtle
A_G Offline
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#1271497 - 10/22/09 03:28 PM Re: External Audit working with Internal Audit A_G
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
I work very closely with the external audit staff. I beleive this has helped keep our costs down. I coordinate the entire exam, work with bank staff to have them get all of their information to me. The external audit team usually comes to me when they are here for requests and I either point them in the right direction, or get the information from them. They comment each year how efficiently it runs to have one contact person they can go to. Now, since the same firm has been with us a few years now they do often just go talk to the individuals that they need to, but they still usually sit right outside my desk so that I'm available to help if needed. We've also been able to cut down their time in our bank from 2 weeks to 1 week (saves expenses) solely because they are automated. We upload all the documents through a secure site, etc. If your firm doesn't do that, you might want to research one that does. I think in the long run it's best for everyone! Hope that helps!

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