Internal Audit Services
Benefits to You
- Early identification of potential high risk situations or control weaknesses
- Improved operational efficiencies
- Ability to focus on your core business
Service Overview
The Internal Audit Services include the ongoing assessment of the system of internal controls and
operating procedures of all functional areas of the financial institution.
The principal element of the assessment is to determine, through a risk-based approach, if there are
sufficient controls and procedures in place to safeguard customer and financial institution assets
from material loss through fraud or employee errors.
Significant control deficiencies noted are
communicated to Management and the Audit Committee with specific suggestions or recommendations
to reduce the risk and improve the internal control environment or other operational procedures.
Provided below is a listing of functions within each area of the institution’s operations that may be
subject to the Internal Audit procedures:
- Loan Operations
- Deposit Operations
- Teller/Branch Operations
- Accounting Operations
- Wire Transfer Operations
- Treasury Operations
- Investment Securities
- Information Technology/Network Operations
- Internet Banking Operations
- Interest Rate Risk/ALCO Review
- Trust Operations and Administration
- Retail Sales of Non-Deposit Investment Products Services
- Insurance Company Operations
- Finance Company Operations
- Secondary Marketing Operations
- Correspondent Bank Operations
- Regulation F Review
- ARM Rate Adjustment Review
- Payroll Operations
A report is issued to the Audit Committee of the Board of Directors and Senior Management at
the conclusion of each review segment.
The report addresses each of the areas reviewed, disclosing any
observations of significant internal control or operating procedure deficiencies, and also provides
specific recommendations of action to be taken for each of the items noted.
Additionally, a follow up
review of previous audit comments and Management’s responses to determine if corrective action has been
taken and the results of such review will be reported to the Audit Committee and Senior Management.
The Internal Audit and other review services are performed on either an outsourcing or partnership basis,
that works best for the client.
The procedures include reporting, workpaper management, interaction with
Bank Management and the Audit Committee of the Board of Directors.
Work is performed in accordance with
the guidelines specified in the Interagency Policy Statement on Internal Audit and Internal Audit
Outsourcing, and The Gramm-Leach-Bliley Act.
Benefits to You
- Provides for an efficient and effective Internal Audit program
- Satisfies regulatory requirements and expectations
Risk Assessments
Campbell & Associates, Inc. can assist Management in completing a risk assessment of
the organization.
The risk assessment should be designed to focus on the business risk profile,
reflecting specific concerns of Management and the Audit Committee, in order to determine the global
risks of the organization, and to customize the internal audit approach to the particular risks and needs
of the Bank.
FDICIA and Sarbanes Oxley Section 404 Assistance
Campbell & Associates, Inc. can assist management in developing a system to provide for the required
elements of FDICIA and Sarbanes Oxley Section 404 related to the requirement to document and perform
testing related to their own assessment of the adequacy of the internal control structure for all
operational areas as well as controls over financial reporting.
Benefits to You
- Assists Board members with their understanding of their fiduciary responsibilities
- Help the Board and Management guard against fraud and financial mismanagement
- Control potential operational, legal, compliance, and reputation risks to the institution
- Focus attention on high-risk and emerging-risk areas while ensuring effective preventive and
detective controls over low-risk areas
Audit Committee Training
Effective corporate governance and internal controls form the foundation for a bank’s system of
risk management.
To help the Board and Audit Committee members meet their responsibilities to set the
tone regarding their corporation’s risk appetite, the professionals at Campbell & Associates, Inc.
can provide guidance or formal training on the components of an effective risk management program.
Oversight of an effective internal control process will provide a reasonable expectation directives
will be followed.
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