Thread Options
#1533452 - 04/08/11 06:03 PM audit situations
osoalone Offline
100 Club
Joined: Dec 2003
Posts: 146
How do you address something that occurs outside of the audit you are currently performing that you feel should be addressed?

Return to Top
#1533472 - 04/08/11 06:23 PM Re: audit situations osoalone
edAudit Offline
Power Poster
Joined: Jul 2008
Posts: 4,761
You are here
It would depend upon the severity of the issue.

The scope of my current bank is usualy flexable enough to adress items that may not have been in the orignal scope.

Prior bank had a Misc section.
Opinions can be considered as coming from anywhere but my employer.


Return to Top
#1533484 - 04/08/11 06:37 PM Re: audit situations edAudit
jnelson Offline
Joined: Aug 2003
Posts: 58
I agree, our procedures allow us to make appropriate changes to the scope of the audit if recent changes have been made to the function. If it is something major outside of the scope of your current audit, then you may want to discuss the situation with your Audit Committee chairperson.

Return to Top
#1533511 - 04/08/11 07:14 PM Re: audit situations jnelson
A_G Online
10K Club
Joined: Jul 2004
Posts: 18,957
I agree with the suggestions that have already been posted.

Also, you may consider rotating something out of the current schedule and replacing it with the new item. In addition, hiring outside auditors/consultants is another option.

Again, it all depends on flexibility within your schedule. Just make sure any changes to the original schedule receive Audit Committee approval or you could be subject to criticism from the examiners.
Last edited by A_G; 04/08/11 07:15 PM.
With the lights out, it's less dangerous.

Return to Top
#1533571 - 04/08/11 08:10 PM Re: audit situations A_G
Skittles Offline
10K Club
Joined: Sep 2002
Posts: 13,963
Are you talking about something completely different - like you're auditing Deposit Operations and you come across an issues in Accounting?

What I do, if it's not too serious, is note it and review it during the audit of the area.
My Opinions Only

Return to Top
#1533686 - 04/09/11 01:24 PM Re: audit situations Skittles
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 78,572
Galveston, TX
I would issue a special report and not wait until the next scheduled audit if there was a significant weakness. The audit committee should be informed of any significant weaknesses noted by audit, whether scheduled or not, in a "very" timely manner.
The opinions expressed here should not be construed to be those of my employer:

Return to Top
#1533706 - 04/09/11 11:23 PM Re: audit situations rlcarey
osoalone Offline
100 Club
Joined: Dec 2003
Posts: 146
Yes, this is something that came up during the course of business in another area completely outside of the audit I was performing. rlcarey: thanks. I starting investigating while it was unfolding. Wasn't sure if that was the protocol or if I should have waited and questioned management after all was said and done. I will be preparing a special report to the audit committee to inform them of a procedure that should have been in place to prevent any losses.

Return to Top
#1533722 - 04/11/11 12:06 PM Re: audit situations osoalone
Countess Kiwi Offline
Diamond Poster
Joined: Jun 2002
Posts: 1,815
I had an areas of concern report for this type of situation. It was routed through normal channels similar to the audit report. This way everyone that needs to know will and that the issue can be addressed right away and not wait for the next audit. The area can then be reviewed in the next audit.
Do what you can, with what you have, where you are.
~Theodore Roosevelt~

Return to Top

Moderator:  Andy_Z