Traditional Audit Services
The most recent regulatory guidance recommends that community banks comply with the provisions of The Sarbanes-Oxley Act, regardless of whether the bank is public or not. With respect to independence, a public accounting firm that audits a bank’s financial statements would not be permitted to provide certain non-audit services, such as internal audit services. Because it is common practice to use the same accounting firm for both internal and external audit functions, many community banks are affected. Our firm is experienced in deciding how to divide these audit functions to be in compliance with Sarbanes-Oxley.
We find that many times banks have generic policies that do not necessarily fulfill the intended purpose. In a heavily regulated industry, the policies need to acknowledge applicable laws and regulations, and be updated frequently to carry on in the dynamic environment of banking. We would review your institution’s policies and provide insight and suggestions to either update or customize the policies to meet the needs of your bank.
Intended results can be acheived with proper planning. Many times a bank’s strategic plan will have performance goals, but not have the steps needed to achieve those goals. In order for a long-term objective to be accomplished, there needs to be an action plan. We can assist the Board and management in preparing an action plan with both a timeline and assignment of accountability.
Independent Review of Interest Rate Risk Monitoring
Interest rate risk is a legitimate concern. We can assist management in assessing the interest rate risk profile and offer cost-effective solutions to manage interest rate risk. Some institutions are paying high costs for an overly sophisticated model, while others are relying on a sometimes overly-simplified analysis. As a bank’s balance sheet becomes more complex, more complex monitoring is needed. We are qualified to assist your bank in monitoring interest rate risk or performing an independent review of the interest rate risk monitoring system.