I have been given the task to audit all of the loan files for completeness in a denovo bank. That being said, you know that we are still creating procedures and policies, etc. The Loan Administrator I am working for, I have worked with in the past, but never with her as my supervisor. We do not exactally think a like. I am having issues with getting her to see my point of view to make the audits go as smooth as possible. I feel like things that are important to me from my past experience are easily brushed aside by her. Does anyone have any suggestions on how to politely address this?

CaliRoo, without a set policy and appropriate procedures you are in a difficult position. Until those are complete I would concentrate on those items that would be violations of law. Are they close to completing the policy?

There is a loan policy, but no procedures for this review, yet. The things I am seeing aren't policy exceptions, but more like consistancy issues. This is actually a new audit that I started this week! We have auditors coming in August and I want everything to be as close to perfect as possible. I am too anal sometimes. The things I am running into is, "well, I didn't know that the officer needed to sign that form", but she is the one who created the checklist I am using that lists that the officer must sign it! I just know that the loan officers are going to be upset and I am most likely the one they will be glaring at.

Just audit to the policies that are established. If the policy says the LO must sign the form - then that is the way it is. I deal with this all the time and all I can say is: "what is, is". If you don't want me to cite policy violations and it is not a legal or regulatory requirement - change the policy.

What rlcarey said is exactly right. If it is in their policy they need to follow that.

When examiners come in, they will look at the same things you are looking at first and if they find that policy is not being followed, regardless if it is legal requirement or not, they will be scrutinizing everything else that much more. This is part of internal control and if IC doesn't look strong, the audit will be much more indepth. You might explain this to the administrator.