Keeping pace with internal audit

Description

Abstract: The role of the internal audit has been evolving from that of a compliance and fraud watchdog to that of a full-fledged partner in an institution’s overall risk management process. Thus, all community banks should review their internal audit programs to ensure that they’re meeting their risk management needs. Among the topics discussed are the OCC’s 2014 Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches; Integration of Regulations. Although community banks aren’t required to follow the guidelines, they represent best practices for well-managed banks and are likely to shape examiners’ expectations. A sidebar discusses published guidance on managing outsourcing risks.