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#1997415 - 02/20/15 09:40 PM Outsourcing audit function
GoneToTexas Offline
100 Club
Joined: Jul 2007
Posts: 130
There has been some discussion in my bank about outsourcing the audit function for both compliance and safety & soundness. We are approaching $1 billion in assets.

I'm curious as to how many banks have taken this avenue, and why. What has your experience been? If you knew then what you know now, would you make the same decision?

Thanks for your input.

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General Discussion
#1997470 - 02/22/15 01:41 PM Re: Outsourcing audit function GoneToTexas
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 79,293
Galveston, TX
Many smaller institutions outsource both internal and compliance audits and find it cost effective versus trying to find, retain and train staff internally to perform the functions and also keep that staff independent from the areas being audited.

At $1B, this avenue is still probably just as cost effective in some areas, however you still will need someone on board to manage your FDICIA internal control assessment process. While some firms claim they can handle this for you, even I who has been doing this type of work for years, would not be comfortable relying on the entire process being outsourced.
The opinions expressed here should not be construed to be those of my employer:

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#1998107 - 02/25/15 03:33 PM Re: Outsourcing audit function GoneToTexas
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
We are at $600 million and we outsource both compliance and S&S audits. We done this for years. We also do our own internal risk assessment on a strict schedule that includes every department and department manager and also includes board reporting.
Just working here until I get my letter from Hogwarts.

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#1998211 - 02/25/15 08:02 PM Re: Outsourcing audit function GoneToTexas
osucpa Offline
Diamond Poster
Joined: May 2011
Posts: 1,400
I agree with rlcarey on the FDICIA control monitoring and testing.

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