Can someone tell me what the audit frequency is for banks to conduct internal trust audits? I think it is either every 12 or 18 months, but I am having trouble finding it. Thanks!

The FDIC's Statement of Principles of Trust Department Management require an annual audit of trust department activities. I am not aware of similar specific requirements from the Fed or OCC (haven't really looked that hard, though). What I have seen from the other regulators is that audit should be (of course) appropriate for the size and complexity of the department...based on risk assessment, etc. Sorry I couldn't provide more.

Hmmm... I thought they were supposed to be conducted at least once each calendar year??!?!?!?! Now I am confused.

OCC Requirements-Reg 9.9 states-At least once during each calendar year, a national bank shall arrange for a suitable audit (by internal or external auditors) of all significant fiduciary activities, under the direction of its fiduciary audit committee, unless the bank adopts a continuous audit system in accordance with teh paragraph b of this section.

Federal Reserve - Industry Audit Guide - Fed recognizes continuous audit as well as one shot annual audit -Fed SR 83-17 states that exceptions to an annual audit should be documented

OTS - 12CFR 550.7 at least once during each calendar year an association's trust department shall be audited (either internally or externally)

The size of the trust department, complexity of business, degree of internal controls, organizational structure, and previously identified problems will affect the frequency and the level of testing.

Last poster hit it right on...be sure you include specific language in your audit report "in compliance with 12 CFR 9, law, and sound fiduciary principles" and make sure the Board of Directors specifically adopts this as a resolution and it is written in the Board minutes. OCC criticized my predecessor for not doing this and I have made sure this gets done every year.