Does anyone have an audit program for the call report that they would be willing to share?

why not use the call report instructions?

We use call report instructions for our audit.

I want to hijack this thread and ask about frequency of call report reviews. We currently do an annual audit, but our outside CPA firm is recommending quarterly reviews before the call report is filed. Our CEO is wanting the Audit Committee to decide whether we should do quarterly reviews. Is there a requirement to do quarterly reviews? I want accurate information before our next Audit Committee meeting. Thanks for any assistance.

I have never reviewed the call report, except to the extent that I knew errors found elsewhere were going to cause an error in the report data.

If you don't have a review process in the accounting area, or if your people in that area are relatively new, a review may be useful. But as often as our examiners look at it, I don't see the need for it.

We just tick and tie all of the numbers.

We are a nonpublic bank over $500 so part 363 applies. As part of the internal control part of this reg, we have to review call report and insider transaction at the first of each year. While I could use the call report instructions and basically redo the call report for year end, I was hoping someone had a step by step written audit program that would say, ex. 1A2 should consist of.... Basically, I was looking for a condensed version of the call report instructions. Anyway, thanks for your reponses.

I review the Call Report quarterly prior to filing. I don't think that there are any specific requirements to do it annually or quarterly, however, it might be a good idea to contact your regulator and get thier opinion.

As for a program, I think that each institution would need to write their own program for items that should be included into each line item specifically. My bank might not be into the same dealings as your bank. That's why it's important that you start with the instructions - highlight the items that they talk about that would relate to specific transaction types, asset types, liability types, loan types, etc. that your bank is involved in and then you can better determine what to look for. I also use the general ledger as a major focal point - I tick & tie each item in the g/l to make sure it's properly reported and that all items are included in the Call Report in some spot.

It's also helpful for you to consult with your external auditor, since it's their primary responsibility to review the published financials. If you do your work correctly, you could cut down on the amount of testing that you're paying your external auditor to do. Most is ticking and tying from the GL, but you will have to ensure FAS standards are being followed too. It's not for the faint of heart.

This whole issue started from a conversation with our external auditors. They do perform a call report review; however, they feel that in the future the regulators are going to be looking a lot harder at this because of SOX. Under part 363 (which is basically a very short bits and piece version of SOX) Management must have an attestation of internal controls on certain issues. This also comes from AICPA’s AT 501. About five years ago I was the one that actually completed the call report – so I think I have a very good handle on how to complete one – I basically was just wanting a simple go by go condensed version of the call report instructions. Anyway, thanks for the suggestions.

So do you tick and tie a sample of numbers from each of the four quarters or just one?

Maybe hit one really heavy and the others a little lighter?

Any thoughts?

Sorry to bring this back up...but does anyone NOT audit the call report?

Or if you do, is there anyone that does something besides tick and tie all of the numbers? I feel like we are wasting our time.

I don't audit it.

When I audit the call report, I compare it to the general ledger and look for discrepancies, and compare it to the budget and look for large, unexpected variances.

I usually just tie the numbers and I do a small comparison back to the GL's. But, I don't audit it very often.

If you see few or no errors, audit frequency gaps can increase. This is also so heavily reviewed and scrutinized that it shouldn't take much audit time.

If you test it and do find problems, certainly expand the processes and review more as there could be serious consequences.