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#149077 - 01/13/04 01:09 PM shifting away from our main responsibilities.
Joe Offline
Member
Joe
Joined: Aug 2003
Posts: 74
Overseas
Gentlemen
Did you notice that the work of the audit department expanded a great deal. The focus is not on the regular audits any more. The audit review and approve procedures, investigate frauds, review and approve new products, start staff awareness programs, involve in various committees etc.

I would like your comments on the above. Do you think we are shifting away from our main responsibilities?

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#149078 - 01/13/04 01:34 PM Re: shifting away from our main responsibilities.
Rocky P Offline
Power Poster
Joined: Jun 2003
Posts: 7,259
Florida
Joe, it would be nice if someone would define main responsibility of any department now-days, especially in smaller banks where everyone wears multiple hats.

Products, processing, boundaries, regulations and controls have changed. As an auditor many years ago, we counted cash at every branch audit. Now, internal controls takes care of it. We now review the controls to ensure they are in effect and effective.

Consider yourself lucky that you are on committees. That in itself raises the awareness of the importance of audit and the controls. It also ensures that the needs are implemented in the development of products and systems instead of after the fact patchwork.

On the fraud and training issues, who would be better than an auditor? Auditors are the only people in the bank paid to mind everyone else’s business. If there is a fraud, auditors can cross departmental lines to determine the breakdown and implement procedures to prevent re-occurrence. As auditors generally review all aspects of banks, senior auditors usually have a birds-eye perspective of departmental interrelationships only afforded to executive management.

Are auditors lucky for the change? It sure beats counting cash and ticking on a 10-column pad.
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#149079 - 01/13/04 04:43 PM Re: shifting away from our main responsibilities.
Last Mango Offline
Gold Star
Joined: Mar 2001
Posts: 293
Too Far From the Beach
Joe,

I'll get back to you with an answer as soon as I am out of the Management Committee and Compliance Committee meetings (No, I do not have any voting authority and I am there for advisement only - so I say.), provide regulatory info on satisfaction fees to a manager, help decode a mortgage document for the same manager, compile a list of hot exam topics for management, tell a clerk that I have no idea why her computer will not print landscape, advise management on a perfection of security question, check with my assistant to see where she stands with her Freddie Mac loan review and finally finish an audit report today.

What do you mean auditing has changed?
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If you keep living straight from the heart, you will know when to stop and to start.

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#149080 - 01/13/04 05:54 PM Re: shifting away from our main responsibilities.
Red Offline
Gold Star
Red
Joined: Dec 2002
Posts: 345
New England
Joe-

Just a good natured comment, there are lady auditors out there as well.

I agree that responsibilities of audit depts have expanded, perhaps shifted away, but I believe the tasks are somewhat related. Disaster Recovery fell into our audit dept, as did Record Retention, SAS70 reviews, Vendor Management, BSA, etc.

Fortunately or Unfortunately, our audit function was outsourced. Leaving enough work, without true audits, for two full time individuals. We have since converted to Risk Management and joined Legal and Compliance under one roof.

If it doesn't have a home, or nobody wants to own it, it becomes audit (or risk mgmt).
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Its risky business, but someone has to do it.

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#149081 - 01/15/04 07:52 PM Re: shifting away from our main responsibilities.
DawgFan Offline
Diamond Poster
DawgFan
Joined: Jul 2002
Posts: 1,678
United States
Quote:

Gentlemen
Did you notice that the work of the audit department expanded a great deal. The focus is not on the regular audits any more. The audit review and approve procedures, investigate frauds, review and approve new products, start staff awareness programs, involve in various committees etc.





I think that, if you have a management structure that wants audit included in review of policies/procedures and products, on committees, educating employees, etc., that's a good thing. Why put a policy, procedure, or product in place that has obvious problems and wait for an audit to find it sometime down the road? That's not risk management. Having an independent set of eyes look at it and point out weaknesses prior to roll out is a good thing. We aren't "shifting away from our main responsibilities", we are increasing our "main responsibilities".
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Opinions expressed are solely my own.

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#149082 - 01/16/04 10:20 PM Re: shifting away from our main responsibilities.
imabanker Offline
Member
imabanker
Joined: Apr 2003
Posts: 55
KY
I basically really love the variety in my job. I enjoy the different assignments that come along with audit. I would really hate this job if all I did all day was sit in my office and review paperwork. The part of my job description that always amazes me is the line that says "and other duties as assigned by the president." Why does that one little line always make me want to start drinking?
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