Are physical branch audits required by the FDIC or OTS for all branches operated by a bank? Can a risk assessment be performed and only high risk branches are visited for an audit? If it is required, how frequently, and are there any sources someone could point me to? Thank you.

I've never seen guidance from any regulator telling me how often to conduct any audit other than BSA. I believe the FDIC expects a risk-based audit schedule.

There is not any required frequency that I am aware of, it all should be risk based. I know that our IA slates all branches to be done every two months, and I do know he does additional audits and followups on the ones with troubles.

No written requirement that I'm aware of. I audit all of my branches quartelry and once per year, our external auditor audits 2 branches.

Q: Does the branch audits include a review of branch security (lighting, alarms and the specifics of those items)?

I don't know of a requirement that each branch must have an audit. I also use a risk based approach. However, if you have a branch that's never been audited, it might be a good time to do a review. In my branch reviews, I do include a review over security controls.

You know I have worked for my bank for 8 years and I dont remember a single time in those 8 years that an auditor has set foot thru our doors. I do something for an internal audit control every month however our Regional Operations Manager has set foot in the door one time to audit what I send her. I have worked for banks where we had auditors at least once a year whether internal or FDIC.

Our branches are on an 18 month schedule- at which time the entire branch is looked at (security, compliance, etc). The branch managers are responsible for conducting their own audits on a monthly basis and send the checklists to us for review. They also perform monthly surprise cash counts. We do not count any cash during the 18th month audits.