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#1944073 - 07/22/14 03:33 PM Director's Loan Audit
CBG Offline
Junior Member
Joined: May 2006
Posts: 44
We are a small community bank and have a Director's Loan Audit Committee of 3 Directors that review a sample of new loans each quarter and report back to the full Board of Directors. My question, who does this type of audit at your Bank? Are all loan audits completed by the Internal Auditor? Is this type of audit outsourced? How often is it done and reported to the Board? I would appreciate any information. Thanks.

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#1944095 - 07/22/14 03:58 PM Re: Director's Loan Audit CBG
osucpa Offline
Diamond Poster
Joined: May 2011
Posts: 1,402
Your comment is pretty general. We are a community bank at 1.5 billion in assets. Internal Audit performs all audit work. All audits are performed on a risk based approach. We would cover this type of audit in a Loan Operations audit. The audit would be performed every 12 to 24 months. Please explain what this Director's audit is trying to accomplish?

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#1944408 - 07/23/14 12:26 PM Re: Director's Loan Audit CBG
KYAuditor Offline
100 Club
Joined: Jan 2003
Posts: 138
We are also a small community bank. It appears that what you are referring to is similar to our loan review. It is completed quarterly and encompasses a sampling of new loans along with regular review of larger credits, and delinquent and watch list credits. I (internal audit)perform loan review each quarter and report to the audit committee. In addition, I perform an internal audit for loan administration based on our internal risk assessment, the results of which are also reported to the audit committee.
Just my 2 cents worth--for what its worth!!

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