Reg GG Setting up a Review for Internal Audit

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Question:

Under Reg GG, how does Internal Audit go about setting up a review that will satisfy the regulators?

Answer:

I don't know that there is a specific process unique to Reg GG. Your audit program should look at whether a risk assessment has been conducted for Reg GG compliance, whether policies, procedures, and appropriate limits have been put in place, the extent of internal monitoring and reporting is happening, and whether appropriate training has been delivered. The audit should identify the control structure and test controls where appropriate to ensure the control is operating effectively. A report on the audit should be issued to management and the audit results reported independent of management to the Board Audit Committee.

First published on BankersOnline.com 4/30/12