How often must internal audits of the trust department be performed?

To my knowledge there is no requirement for the Internal Audit Department to audit a Trust Department. I believe most laws deal with agreed upon procedures or an audit.

I think I found the answer in 12 CFR 9 - at least once during each calendar year. Thanks!

We audit ours annually and the procedures are a combination of FDIC and the state banking code.

The FDIC Trust Examination Manual, Section 1 - Management; Part B, Statement of Principles of Trust Department Management; Paragraph 3, Line 3 states:

"The Board of Directors, by proper resolution included in its minutes, should: Provide for an adequate audit (by internal or external auditors or a combination thereof) of all fiduciary activities, annually. Trust committee minutes should record the findings of the audit, including actions taken as a result of the audit."

:-)

Watch out for state laws. In Kansas, if you outsource to an external audit firm, the requirement is annually. If you do it internally, there's a list of items that have to be audited quarterly.

Didn't like the way I gained that little piece of knowledge...