I am wondering how other community banks with an internal auditor handle the reporting of audits and loan reviews. The bank I came from was larger than the bank I work for now and had an audit committee and and loan review committee. We reviewed new consumer and mortgage loans on a quarterly basis and commercial loans were reviwed on annual/bi-annual basis based on the total dollar amount of the relationship.
Here I am reviewing the newconsumer and mortgage loans on a quarterly basis just as before, but commercial loans reviews are outsourced and I do not cooridnate those reviews. The internal audits (GL recons, wires, reg E, NACHA, etc) are submitted to the audit committee comprised of all external directores (3 people). The loan reviews are curretnly being discussed at the loan committee which includes 2 of the 3 external directors on the audit commitee and I am not present for the discussion.
How are other banks handling a loan review function that is performed in house? I don't have a problem with the loan reviwes being discussed at the loan committee. In fact, that is a good thing. However, the external directors are not given any of the reports in advance to review. Thanks for your input!
_________________________
My questions and opinoins are my own and not my employer's.