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#1603488 - 09/14/11 04:26 PM Annual Audits Required?
complygirl Offline
Platinum Poster
Joined: Oct 2004
Posts: 822
We are a national bank. What areas require an annual audit?

I believe banks are expected to take a risk based approach to this and base their audit schedule on their overall compliance risk assessment. However I was wondering if there are specific areas that are required to be reviewed at least annually?

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#1603596 - 09/14/11 06:19 PM Re: Annual Audits Required? complygirl
DerrickAuditor Offline
Joined: Mar 2008
Posts: 91
As mentioned, your internal audit plan should be based on risk assessments. For us, high risk areas are audited annually, moderate risk areas are audited every 2 years and low risk areas are audited every 3 years.

However, there are certain areas that examiners, external auditors, or your Board/Audit Committee may expect to be performed annually, regardless of your risk assessments.

Areas we audit annually regardless or risk assessment to make our examiners (FDIC) happy include: ACH (for NACHA compliance), BSA, Flood, Reg O, Fair Lending, SAFE Act, GLBA & Reg P, Trust.

To keep our external auditors happy (different external auditors have different expectations): 401(k), key accounting areas, investments, loan & deposit confirmations.

To keep my audit committee happy (varies by bank): Allowance for loan losses, employee accounts, expense reports, payroll & benefits.

To my knowledge, the only areas that MUST be audited annually is ACH (by December 1st) and SAFE Act.

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#1603946 - 09/15/11 01:48 PM Re: Annual Audits Required? DerrickAuditor
Blessed Offline
Diamond Poster
Joined: Oct 2007
Posts: 2,389
BSA must be audited every 12-18 months (depending on you Bank's Risk Assessment & prior Audit and Exam findings).
Ecclesiastes 10:2 (NIV)

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