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#2189826 - 08/20/18 09:12 PM Access to prior audit report
GoneToTexas Offline
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Texas
We've requested quotes from several firms to perform our BSA audit. One of the firms has asked to see our last audit. I've never been asked for that before - is that common? Of course we would provide it to whichever firm we select. Is there any reason to decline this access prior to awarding the engagement?

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#2189834 - 08/20/18 09:59 PM Re: Access to prior audit report GoneToTexas
rlcarey Online
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I would not be handing out past audit reports prior to an engagement letter being signed. There is no confidentiality agreement at this point. I was on the consulting side of the industry for 15 years - I can't see what difference it would make to put together a proposal. If they want to know if you have problem areas, that is a question they should just ask. I did. I would check them off the list right away, as they don't seem to have a very good handle on what they are doing.
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#2189846 - 08/21/18 11:41 AM Re: Access to prior audit report GoneToTexas
Adam Witmer Offline
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I'm with Randy on this one, though I guess the difference it would make in putting together a proposal would be to try to get an understanding of how many issues a bank had or didn't have. I know first hand that banks with many issues take more time to review than those that run a tight ship. That said, a simple questionnaire can be just as effective - if not more valuable in scoping and pricing a proposal. In addition, I've done plenty of audits where the previous audit report was clean, but there were issues that hadn't been previously identified.

I too would not be handing out past audit reports before a signed engagement. A simple questionnaire should provide them with everything they need to scope and price your proposal.
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#2189853 - 08/21/18 12:24 PM Re: Access to prior audit report GoneToTexas
osucpa Offline
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We never share prior to an engagement letter being signed. At that point it is part of the request list.

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#2189854 - 08/21/18 12:30 PM Re: Access to prior audit report GoneToTexas
rlcarey Online
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Galveston, TX
Plus, any proposal that you receive is likely to include a clause similar to this:

Any changes due to the necessity to expand field work (e.g., if significant issues are found) will be immediately brought to the attention of management and prior management approval will be required to exceed the presented budget.

Like any quote received by a vendor, it is only as good as the information that you provide to the vendor and what the vendor does with that information based on past experiences.
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#2189860 - 08/21/18 12:53 PM Re: Access to prior audit report GoneToTexas
edAudit Offline
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You are here
There also could be mention to specific Regulatory actions which would require Confidentially supervisory Information agreements. Our regulator includes MRA/MRIA information as CSI.
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#2189884 - 08/21/18 02:06 PM Re: Access to prior audit report GoneToTexas
GoneToTexas Offline
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Texas
This helps a great deal. Thank you for your insight.

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#2189926 - 08/21/18 04:30 PM Re: Access to prior audit report GoneToTexas
P*Q Offline

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Based on that question alone, I would eliminate the firm requesting that immediately. They know better.

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#2189986 - 08/21/18 07:35 PM Re: Access to prior audit report P*Q
Adam Witmer Offline
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Originally Posted By P*Q
Based on that question alone, I would eliminate the firm requesting that immediately. They know better.

Or, apparently don't... which is probably worse.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2190103 - 08/22/18 04:20 PM Re: Access to prior audit report GoneToTexas
P*Q Offline

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True Adam, true. I should have said "should".....

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