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#1393984 - 05/20/10 03:51 PM audit function is growing
auditfirst Offline
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auditfirst
Joined: May 2010
Posts: 6
kentucky
We are a $200 million bank. We just purchased 8 branches (up from 3) and will be a $500+ million dollar bank. Currently, I am the only auditor. I work part time, and on a sporadic basis. I was hired 5 years ago for approx 80 hours a quarter. Obviously, with our growth and planned future growth, internal audit needs to change.

Currently, I prepare a risk assessment and schedule audits based on a 1,2,or 3 year cycle.

We outsource compliance, loan review, and information security. In speaking with the CFO, we need to develop an audit plan that mirrors our size.
What suggestions do you have? Is anyone willing to share their schedule and what kind of things I should look at? When I started, I basically took old audit reports from the outsourced internal audit and modified procedures along the way.

For a bank this size, what amount of hours should audit have (given the audits mentioned that are outsourced). Some of the audit areas I cannot see that would take much more time than it does now, regardless of size.

Sorry for the length of post and thanks for your help!

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#1394370 - 05/20/10 10:35 PM Re: audit function is growing auditfirst
Jokerman Offline
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Joined: Nov 2003
Posts: 12,846
If you have no duties related to credit quality/compliance/IT audit, then I would think one FTE would probably be ok for the things I would expect audit to review. [I would question whether you're still going to get the best bank for your buck by outsourcing those functions, though.]

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#1394819 - 05/21/10 07:28 PM Re: audit function is growing Jokerman
auditfirst Offline
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auditfirst
Joined: May 2010
Posts: 6
kentucky
[I would question whether you're still going to get the best bank for your buck by outsourcing those functions, though.]

Which functions...the ones I do audit or the ones that I don't?

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#1397346 - 05/27/10 06:57 PM Re: audit function is growing auditfirst
Jokerman Offline
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Joined: Nov 2003
Posts: 12,846
I'm referring to the functions related to credit quality and compliance. IT audit generally makes sense for community banks to outsource, in my opinion.

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#1398277 - 06/01/10 08:03 PM Re: audit function is growing auditfirst
risk08 Offline
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Joined: Jun 2008
Posts: 16
I am at a $500MM dollar bank. Of course we have grown and added staff with the growth, but I wanted to let you know that we have 3 full time auditors and 3 compliance staff in addition to myself (Risk Officer). I think an audit program was purchased years ago and they developed the annual audit schedule by the audits that pertained to our bank. There are only 2-3 audits that are outsourced. Hope this helps!

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#1398284 - 06/01/10 08:10 PM Re: audit function is growing risk08
BlueEyedGirl Offline
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BlueEyedGirl
Joined: May 2006
Posts: 50
somewhere between here and the...
We are a $1B holding company (2 banks and 1 investment advisory firm). There are two of us in IA and one compliance officer, all full-time. We also outsource BSA, IT, loan quality reviews, and loan/deposit compliance audits. We perform our audits based on a risk-assessment and the audits are on a 1, 2, or 3-year cycle depending on the risk assessment. We also perform non-risk based audits such as employee account reviews (quarterly) and SOX control testing.

The regulators have been recommending some additional duties. If we decide to follow their recommendations, we may need one more additional FTE. If not, our two-person department is adequate for now.

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