Can Workforce Services Audit A Bank Account

What's Involved With A Bank Audit?

bank-audit

Think audits are just for the beleaguered taxpayer?

Don't worry, private citizens don't go all the fun—both big and small companies from a variety of industries undergo regular audits, as well.

The banking sector is no stranger to the auditing process.

In fact, banking concern audits are routine and common procedures that impact financial institutions of all sizes.

If you're involved in the management of a bank and are preparing for an upcoming audit, it can help if you proceeds some clarity about what bank audits are and what to expect during the process.

What Is A Bank Audit?

A bank audit is a formal process in which the services, systems, financial statements, and/or procedures of a banking concern, credit union, or other financial establishment is reviewed and summarized in a report.

Every financial service company has a legal requirement to undergo audits regularly in order to comply with laws and regulations, as well equally manufacture standards.

What Do Bank Auditors Do?

Bank audits are performed by a kind of accounting specialist called a bank auditor.

There are two types of audits:

An employee of the financial institution can conduct an internal audit.
An independent auditor under the direct guidance of a certified public accountant (CPA) can conduct an external audit.

What Is The Purpose of a Banking company Audit?

Bank audits serve many purposes.

Here are a few common areas and metrics that a bank audit will evaluate within a financial institution:

Security and hazard direction, including operational, strategic, reputation, credit, compliance, and It and cyber risk
Liquidity and budgetary catamenia
Financial transactions, including bank wires and automated immigration house (ACH) networks
Fiscal and regulatory reports
Whether a fiscal institution is correctly following its ain policies and/or operating in compliance with legal and best-practise standards
Whether there is whatsoever evidence of law violations, coin laundering, fraud, and whatever other anomalies

Above all else, the main goal of an audit is to make sure a financial institution is operating in line and above board with all industry and local regulations.

How Long Does A Depository financial institution Audit Accept?

Bank auditors will typically spend about iii months investigating a bank's fiscal activities, run a risk direction processes, systems, and procedures to brand sure that all related information is complete, timely, and accurate.

What Happens Afterwards The Depository financial institution Audit Is Finished?

In one case auditors have had the chance to test and evaluate their findings, they can compile a study or audit opinion that outlines any feedback or cosmetic steps that a bank needs to take in club to remain in compliance.

If the inspect was done externally, the results will exist shared with stakeholders and creditors.

Equally y'all can see, banking concern audits are of import for ensuring the integrity of a fiscal institution and its practices.

Undergoing audits and responding to the feedback generated by audits protects not only a financial institution'due south direction, just also its shareholders, creditors, lenders, and clients.

While banking company audits tin certainly be stressful experiences, they can be made more than streamlined through the utilize of auditing software and related services.

Boosted Reading:

Internal Inspect vs. External Inspect: What Is The Departure?
How Banks Can All-time Set For Audits And Exams
What Should We Expect For In A Quality Depository financial institution Auditor?

Integrity specializes in GLBA compliance and provides back up for audits and exams. We have all-encompassing experience working with auditors from many firms, also as examiners from the OCC and FDIC. We as well follow guidelines outlined in your fiscal establishment's due diligence procedure. To learn more virtually preparing for your next audit, or remediating existing vulnerabilities, please download our gratis GLBA Compliance Checklist!

How to achieve GLBA compliance for your bank audits