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#2222089 - 09/23/19 03:26 PM Audit Confirmations
rguiltner Offline
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Joined: Mar 2007
Posts: 23
I'm curious how banks are confirming account balances with their account holders? We currently send audit confirmation notices to 10% of our account holders on an annual basis asking them to review their balance. Would like to hear what other banks are doing. Do you send them annually or less frequently? Is it completely outsourced or inhouse? Do you send it to 10% of your account holders...more...less?


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#2222094 - 09/23/19 03:44 PM Re: Audit Confirmations rguiltner
P*Q Offline

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Joined: May 2001
Posts: 8,458
We outsource this process to our internal audit firm and it's annual, around the time our financials are being audited.

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#2222114 - 09/23/19 04:55 PM Re: Audit Confirmations rguiltner
Sunshine Lady Offline
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We also outsource this on an annual basis.
Define Success on your own terms, achieve it by your own rules, and build a life you are proud of. Anne Sweeney

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#2222116 - 09/23/19 05:02 PM Re: Audit Confirmations Sunshine Lady
Carolina Blue Offline
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Joined: Jul 2005
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Lost in a regulatory fog
We outsource as well, but it's handled by our external audit firm. I used to work at bank that had an internal audit department and they performed the confirmations. I can't remember the sampling process but it was based on account type and account balance,

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#2222182 - 09/24/19 12:12 PM Re: Audit Confirmations rguiltner
osucpa Offline
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Posts: 1,400
We do not confirm account balances. Our external auditors might send confirmations with respect to their audit.

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#2222268 - 09/24/19 10:36 PM Re: Audit Confirmations osucpa
TomS Offline
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Joined: Jan 2004
Posts: 315
We used to do annual account confirmations in-house, then outsourced it to our external audit firm a few years ago. I don't believe their sample is based on a percentage, they typically confirm 150-200 deposit accounts and the same for loans.

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#2223087 - 10/04/19 06:39 PM Re: Audit Confirmations rguiltner
Rocky P Offline
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Joined: Jun 2003
Posts: 7,402
Former bank - Internal audit sent them out in conjunction with external audit for the annual financial audit.

External audit provided the guidelines and internal audit produced, balanced and mailed confirmations, with all mail going to external audit. IA basically did the grunt work, saving the $100+ per hour external charge. If I remember correctly, they used random on checking and savings, and dollar unit sampling on CD's and loans.
Integrity. With it, nothing else matters. Without it, nothing else matters.

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