2006-08-20 03:20:59 · 4 answers · asked by studentdude 1 in Business & Finance ➔ Taxes ➔ United States
I was a bank auditor for some time working for a CPA firm. The government (OCC, FDIC, or FRB) does have bank examiners that perform bank examinations at least every 18 months. But a bank must have an audit performed by an independent CPA at least annually.
The most critical part of the financial audit of a bank is evaluating the loan portfolio. The largest (dollar amount) of loans should be examined for valuation/collectibility - this is done by choosing all loans over a certain dollar amount. And there should be a random sample of all of the loan types chosen for audit. The allowance for doubtful accounts is given lots of scrutiny.
The investments of a bank can be confirmed with the safekeeping agent. A bank has no inventory, but a cash count is usually performed.
I have actually counted the cash in bank vaults and teller drawers many times. Not every bill is counted, but bundles of bills are test counted.
Also, we sent out positive and negative confirmations to bank customers asking them to verify their loan and/or deposit balances. I could go on, but . . .
2006-08-20 10:33:28 · answer #1 · answered by STEAKMO 5 · 0⤊ 0⤋
In addition to the types of audit intelbarn mentioned, there are compliance audits. These deal with procedures to comply with The various regulations that apply to banks. The include procedures to detect money laundering and prevent discrimination in lending practices. There are many types of regulations to comply with.
2006-08-20 08:50:28 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Are you talking about tax audits, external financial audits, or internal auditing?
If you clarify a little more I'll edit my answer to help you out.
2006-08-20 03:54:58 · answer #3 · answered by intelbarn 3 · 1⤊ 0⤋
concurrent audit, revenue audit, half yearly review and yearly statutory audit
2016-01-03 17:06:52 · answer #4 · answered by razi k 1 · 0⤊ 0⤋