OCC Exit meeting

I'm new as an internal auditor. I'm a one man department. I report directly to the Audit Committee myself. Do I need to be included in the meeting OCC has with management when they're through with their exam?

As the auditor, you should always attend the examiner's exit meetings. You will hear things that don't get put into the final report. Things that you may want to look into. Internal Audit is also a component of the management CAMEL rating.

What is the protocol? Do the OCC examiners normally include the internal auditor in these meetings? Or do I just go on in the meeting?

It has been my experience that Audit is so interconnected with the exam, that most things, including the exit, are coordinated thru them and it's just a given that you will be there...at least that's the way I've always experienced it whether as Auditor or Compliance Officer.

You need to be at the exit meetings but sometimes it's difficult. There are always items that are discussed but not in the report that you must follow up on to ensure that they're addressed before the next examination. As the new IA now's the time to get into the meetings. Explain it to your boss before the meetings so you're not "dismissed" from sessions.

Don't just "show up". Talk to senior management and the audit committee chairman ahead of time and indicate that you feel that it is important that you be there and arrange to be there.

Thank you all for your help!

Definitely ask your management that you be there. As Randy noted, you can't invite yourself. They may want you there for some, all or none of the meeting, depending on the content. What is said by them may not be as important to others as it is to you and your function. That is why you want to know first hand what is said. But again, if you have your manager there they may not want you. (Reporting to the committee as was originally posted rules this out, in that instance.)

As CO I was always there and always took a lot of good notes. You'll be referring to these as you progress through clean up, periodic audits and when you get your next notice that they're coming back. Three things are certain, they always come back, they review their notes before they do and they don't like seeing the same error again.

Who coordinates the exam at your bank? As Risk Manager, I do that at our bank and I include audit. Perhaps you can just casually chat with that person. It might not have occurred to them.

Kaybee's comment brings up the point of exam management. Who is the point of contact, who coordinates the meetings, gathering/delivery of materials, etc. They should coordinate this.

We are so small, our President and VP/Cashier coordinates the exam. I spoke with the President and he admitted I should have been there. I was incorrect in thinking it was the exit meeting. However, it was a meeting covering BSA, CIP, RESPA. I do not do compliance exams but I told the President that some of my audits overlap with compliance and that I should still have attended. He agreed. The exit meeting will probably be this week. I will "remind" the President before.

What is your feeling about management not wanting the internal auditor to attend any bank meetings? Not that they forget to include me but that they don't feel I should attend. These would be any committee meetings or exit interviews. The audit committee chairman is usually invited, however.

hmmm, I can empathize. In my case it's called being a pion (sp?) I try not to take offence, besides, the less you know the less responsibility you have when the sh*t hits the fan.

Sounds good on the surface but in my case all the sudden why wasn't I monitoring? The OCC has even commented on it. I can't change management so I just try not to be annoyed and remind them that I wasn't included therefore didn't know what needed to be followed up on.

Unfortunately pixie, in most cases when the examiners find something and you as the internal auditor did not they are going to find your audit program lacking. I'm sure I annoy a lot of people at my bank and they think I am just prying but it has saved their butts and mine on several occasion.

managment passes along the bullet points, I'm just not "cool enough" to be in on the bigwig meetings yet. My point was just that different banks do things differently and you can find somthing positive in every chalanging situation.

We don't include auditors in many of our exit exams. Definately not CRA (data integrity exam or the full exam). Gad forbid there be one more layer in the process.

I just came back into banking from being an examiner at the Federal Reserve. If you have a pretty good relationship with the examiners, talk to them and see what their expectations are for your attendance. Their views can be a valuable source to take back to your management if they feel that it is important for you to be there. There is a misconception I have seen in the industry to not ask their regulators questions. That is not what they are wanting I can assure you. Just don't bombard them. Good luck and take notes!