Bank Analysis School September 2023 - Presentations & Resources

Internal Use Only

Internal Audit

Adequate monitoring of the institution's internal control system

Independence and objectivity

Qualified personnel

Adequate testing and review of information systems

Adequate documentation of tests and findings of any corrective actions

Verification and review of management's actions to address material weaknesses

Review by the Audit Committee or Board of Directors of the internal audit systems' effectiveness

Source: FDIC Part 364 – Minimum standards for an internal audit program

Internal Use Only

Audit Committee

Independence from management (all members, if over $500MM in assets)

One financial expert (if over $500MM in assets)

Are members actively engaged in oversight duties and effectively overseeing internal controls?

Board or Audit Committee minutes should reflect decisions regarding audits, such as external audit engagement terms (including any decision to forgo an external audit), the type of audits to be performed, or why an audit of a particular area is not necessary.