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#698085 - 03/07/07 07:14 PM Internal Audit vis-a-vis External Audits
ESK Offline
New Poster
Joined: Dec 2006
Posts: 24
Washington
I'm the sole internal auditor at my bank in a newly created position/function and I'm trying to get a feel for the parameters I need to set up in my working relationships with management, external auditors, etc.

I'm curious as to how involved some of you get on external audits -- whether you simply coordinate scheduling, take full reponsibility for all aspects of external audit, or something in between.

Also, with management, how much do you accommodate them with respect to audits? Do you simply pass on everything to them or do you get directly involved with audit preparation, etc.

Your candor is greatly appreciated.

Thanks.

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Audit
#698138 - 03/07/07 08:22 PM Re: Internal Audit vis-a-vis External Audits ESK
Auditjg Offline
Member
Auditjg
Joined: Sep 2004
Posts: 67
For our bank, I coordinate external audit and regulatory exams. I am the go-to person for anything the auditors might need. If they have questions, they come to me and if I can't answer, I send them to the right place - or I contact management. This is just how our bank has done it. It speeds up the external audit process and is very efficient according to our external auditors. When we get our prep package, I hold a meeting with everyone I need to get information from and we delegate who will get what. But as far as questions from the auditors, they always contact me. Sometimes they will contact Sr. Mgmt, but 95% of the time, they coordinate with me. Regulators are a little different and I coordinate their prep package as well, however, when they are here, they don't come to me as often. They usually know who they want to talk to.

As far as reports, you as the auditor should get a copy of all reports, be in the exit conference, and get a copy of any managment responses. You don't do anything with mgmt response, preparation of the audit report, etc. You should just be in the know! Hope that helps.

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#698144 - 03/07/07 08:27 PM Re: Internal Audit vis-a-vis External Audits ESK
MN Banker Offline
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Joined: Aug 2006
Posts: 980
Congratulations on your new position!

I am also the sole internal auditor, and I am very involved on external audits. I am our external auditors main contact person in the bank. They go through me to schedule audits, and I in turn go to applicable management to make sure that fits in their schedule. The external auditors also send me all of the planning information, which I then either gather myself or work with management to gather. Typically if I get management involved I tell them what I need from them and their deadline to get it to me.

During the audit, I will direct them to the person they need to talk to about a certain issue. I also make sure that they are getting everything they need and make sure they are not having any other problems.

After the audit, all applicable management and myself are involved in the exit meeting. It's typically management's responsibility to correct findings, but I follow-up to make sure it's getting done and to assist as needed.

I don't necessarily take "full responsibility" for all aspects of external audit. Management is responsible for their own areas, and I really just get everything organized, make sure things are progressing as they should, and stay on top of management to correct any issues.

Does that answer your question?? Let me know if you have any more!

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#698197 - 03/07/07 09:24 PM Re: Internal Audit vis-a-vis External Audits MN Banker
Cornfed Turtle Offline
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Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
MN Banker made a good point in there (actually one of several!)- - - the best part of being involved is that the exceptions come through you. You are tracking the internal audit exceptions and you can utilize the same system for follow-up to make sure the corrections are made. It will help you down the road to have been involved in the organization. (The external auditors like it too!)

And congrats!

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#698209 - 03/07/07 09:35 PM Re: Internal Audit vis-a-vis External Audits MN Banker
ESK Offline
New Poster
Joined: Dec 2006
Posts: 24
Washington
Thanks for your reponses, Jen and MN. I see a commonality in that the internal auditor is the conduit for the relationship between external auditors and management. I appreciate your honest feedback.

Steve

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#715289 - 04/12/07 02:25 PM Re: Internal Audit vis-a-vis External Audits ESK
SCM007 Offline
New Poster
Joined: Apr 2007
Posts: 19
Hi. I've been given the role of audit coordinator within our bank. We are not a community bank, but a wholesale & savings bank. I am to be the contact or go-to person between management, internal auditors, external auditors, etc. I am to keep track of exceptions, receive the document request list and gather information, be sure eveyrthing is being done on time. I believe the role is expected to grow and I'll be more knowledgable in the area of audit. Can anyone recommend a trainig manual or membership program where I could gain more knowledge? I'm fairly new to the industry (six months), currently responsible for the back office operations, and now audit coordinator in addition. I'll appreceiate any input, suggestions and/or direction.

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#715317 - 04/12/07 02:57 PM Re: Internal Audit vis-a-vis External Audits SCM007
Ready to Retire Offline
Diamond Poster
Joined: Aug 2005
Posts: 2,313
Living in the land of Oz
Try ICBA's Internal Auditor training. That is where I got my training and it is excellant.

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#715369 - 04/12/07 03:49 PM Re: Internal Audit vis-a-vis External Audits Ready to Retire
SCM007 Offline
New Poster
Joined: Apr 2007
Posts: 19
I looked at that website, however, do you think it would be beneficial even though we aren't a community bank?

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#715394 - 04/12/07 04:06 PM Re: Internal Audit vis-a-vis External Audits SCM007
blue Offline
Platinum Poster
Joined: Jul 2005
Posts: 793
The IIA offers Tools and Techniques for the beginning auditor. If you want an intro to bank accounting try BAI's Bank Accounting Boot Camp.
What sort of training are you looking for? Bank accounting or auditing in general?

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#715395 - 04/12/07 04:08 PM Re: Internal Audit vis-a-vis External Audits SCM007
blue Offline
Platinum Poster
Joined: Jul 2005
Posts: 793
The IIA offers Tools and Techniques for the beginning auditor. If you want an intro to bank accounting try BAI's Bank Accounting Boot Camp.
What sort of training are you looking for? Bank accounting or auditing in general?

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#715917 - 04/13/07 01:04 PM Re: Internal Audit vis-a-vis External Audits blue
SCM007 Offline
New Poster
Joined: Apr 2007
Posts: 19
Probably auditing in general.

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