Post

Internal Audit School
Westin San Francisco Airport

New three-day format for 2013!

The demands placed on your institution’s internal auditor increases each year due to new technical requirements and evolving risk management theory. Whether you’re a new internal auditor, looking for a cost effective update on current internal auditing trends, or want to incorporate the latest in regulatory developments into your internal audit scopes, this program is the perfect venue.

In this three-day program we’ll review some of the basics of internal auditing in financial institutions, but will focus more on advanced techniques and the latest developments in regulatory trends, as well as using case studies and group projects to reinforce the concepts.  

Who Should Attend

New internal auditors and seasoned auditors looking for an update on current internal auditing trends, or ways to incorporate the latest in regulatory developments into your internal audit processes.

Program Objectives

  • Create an internal audit universe
  • Develop a basic internal audit plan
  • Complete steps necessary to develop a work program
  • Prepare basic audit committee communications
  • Plan and conduct basic interviews with personnel
  • Document and report follow-up on audit findings to audit committees
  • Identity and define risk areas within Branch Operations audit areas.
  • Explain the importance of audit areas and how to audit these areas.
  • Determine how findings should be presented to management.
  • Identify where to find basic FRB rules for operational activities and integrate them into their internal audit work programs
  • Perform basic audits of back office operations
  • Document and report follow-up on audit findings to audit committees
  • Describe various transactions related to Banks investment portfolio
  • Identify key internal controls related to investment process
  • Determine accounting, disclosure and other reporting requirements related to investment portfolio
  • Determine proper use of suspense and clearing accounts
  • Locate key sources of information and research regulatory guidance and requirements
  • Plan an audit of basic compliance functions
  • Create reports on compliance audits
  • Describe Internal Audit’s responsibility in relation to Integrated Audits (or FDICIA compliance)
  • Describe and apply key implementation concepts
  • Explain the proper relationship between the external auditor and Internal Audit
  • Define the role for IT audit in a financial institution
  • Describe information systems (IS) assurance practices among financial institutions
  • Explain IT audit practices and procedures
  • Describe emerging risk and regulatory trends, particularly related to payment fraud and mobile banking
  • Scope your institutions BSA audit
  • Explain how to evaluate your institutions BSA risk profile
  • Describe emerging regulatory expectations of customer due diligence / enhanced due diligence
  • Describe core methods for measuring interest rate risk
  • Define each of the  five categories required to satisfy independent review requirements
  • Explain emerging guidance related to interest rate risk management as well as funding / liquidity management
  • Describe some of the common pitfalls seen by external auditors in the recent years related to the ALLL
  • Highlight how the Bank’s Liquidity and Capital Ratios are used by the external auditor in planning their audits when assessing audit risk
  • Describe and share “best practices” with other participants in overseeing the necessary audits for their Bank
  • Describe areas where their role as an internal auditor can impact financial reporting and assist the external auditor in being more efficient and/or effective in the independent financial statement audit

Dates & Accommodations

Tuesday, May 7, 2013 through Thursday, May 9, 2013

The Westin San Francisco Airport
1 Old Bayshore Highway
Millbrae, CA 94030
(650) 692-3500

CBA has arranged a special rate of $165 per night.  Please call (888) 627-8404 by April 5, 2013 to take advantage of the room block rate or reserve online by clicking: California Bankers Association .  Room rate includes complimentary guest room internet, and reduced self parking rate.

For transportation to and from the hotel, click here for detailed information.

Tuition

Early-Bird Registration (register by April 12, 2013)
CBA Member: $1,500
Non-Member: $2,500

Regular Registration
CBA Member: $1,800
Non-Member: $2,800

Cancellation & Complaint Resolution Policy

Substitutions are allowed, at no additional cost. Written notice is required for all cancellations. If the request is received by Tuesday, April 16, 2013, the full registration fee will be refunded, minus a $250 processing fee. If the request is received by Tuesday, April 23, 50 percent will be refunded. No refunds will be granted after April 23. Registrations made after April 23 are not subject to refund.

Complaints regarding this program should be directed to John Lingvall, VP & Director of Education at (916) 438-4428.

Agenda

We will begin class at 8:30 each morning and conclude at 4:30 in the afternoon, except the last day of the school which will end at 3:30.  Breakfast will be provided at 7:30 and lunch at noon.

DAY ONE

Welcome & Kick-Off

  • Introductions
  • Participant issues & expectations for the program
  • Review of the agenda

Introduction to Internal Audit

  • Risk assessment theory and annual internal audit planning
  • Developing work programs
  • Audit evidence standards
  • Sampling methods
  • Case study – internal audit planning

Communication and Reporting

  • Audit committee communications
  • Interview techniques
  • Reporting structures – required elements
  • How to write effective reports
  • Evaluating management responses
  • Tracking and reporting audit follow-up
  • Case study – reporting

DAY TWO

Auditing Operations

  • Branch Operations
    • New accounts
    • Safe Deposit
    • Collateral Safekeeping
    • Cash
    • Key and combination controls
    • Suspense account and bank control accounts
    • Automated Teller Machines
    • Consigned items (travelers checks, gift cards, cashiers’ checks, money orders)
    • Security
    • Night Drop
    • Segregation of duties
  • Back Room Operations
    • Fed Line and Wire Transfer
    • Returns, NSF and Overdrafts
    • Automated Clearing House – RDFI and ODFI Functions
    • Remote Deposit Capture
    • Merchant Capture
    • Statements and reporting
    • Account maintenance
    • Access levels and software platforms
  • Loan Operations and Servicing
    • Loan Documentation
    • Boarding Controls
    • Collateral controls
    • Disbursements and construction draws
    • Maintenance transactions
    • Loan modifications and renewals
    • Insurance and titling
    • Payment processing
    • Statements
    • Imaging system controls

FDICIA and SOX404 Audits

  • Additional Internal Audit Planning Considerations
    • Financial statement assessment
    • Key Controls
    • Controls walkthroughs
    • Control testing plans
  • Reporting and Remediation
    • Reporting requirements
    • Definition of control findings and significance
    • Management response and action – Remediation
    • Re-testing
  • Working With Your External Auditor
    • Planning for financial auditor testing
    • Communications with your audit

Information Technology – New Technology and Trends in Auditing

  • Software
  • Hardware
  • Electronic Banking/Internet Access
  • Third party service providers
  • Emerging Technology

DAY THREE

Auditing Compliance

  • Basic Compliance Background
    • Sources of information
    • Key regulations
  • Planning Compliance Audits
    • Risk assessment
    • Sampling
    • Scope of internal audit
    • Evaluating required expertise
  • Performing Compliance Audits
    • Testing requirements
    • Reporting requirements
  • Case Study 

Trends in Auditing – Safety and Soundness

  • Credit
    • Valuation
    • Delinquency and Collections
    • Credit Risk Classification
    • Allowance for Loan Losses
    • Foreclosure
    • Special Assets and OREO
  • Interest Rate Risk
    • Terminology and key focus areas
    • Model Considerations
    • ALCO Reporting
  • Liquidity
    • Regulatory Requirements
    • Testing requirements
  • Capital
    • Regulatory Requirements
    • Testing requirement 
  • Corporate Governance
    • Board of Directors
    • Committees
    • Compensation
    • Shareholders
  • Anti-Money Laundering Programs (BSA/USA PATRIOT ACT/OFAC)
    • Recent trends in examinations – focus areas
    • Current money laundering techniques
  • Trust and Fiduciary
    • Custodial relationships
    • Fiduciary accounts
    • Benefit plans
    • Non-deposit investment products
    • Third party considerations

Auditing Accounting & Finance

  • Investments
    • Purchase and authorization
    • Collateral safekeeping
    • Maturities, calls
    • Sales
    • Reporting
  • Suspense and Clearing Accounts
    • Usage
    • Reconciliation
    • Certification
    • Tracing unresolved entries

Detecting Fraud

  • Examine case study examples of real live situation occurring today
  • Determine best practices for detecting and addressing fraud in your organization

Class Project Presentations

PROGRAM CLOSE

Faculty

This program will be led by a team of professional from Moss Adams LLP, the largest accounting and consulting firm headquartered in the western United States.

Daniel L. Huston, CPA, CFIRS, Partner, Moss Adams LLP
Dan has over 30 years experience working with Financial Institutions, holding a variety of operations and lending positions, with a significant focus on compliance with Federal regulation, product development and processing efficiency. Dan Joined Moss Adams in 1999 and directs the Firm’s Internal Audit and Regulatory Compliance services for Financial Institutions. Dan’s areas of expertise include credit underwriting and lending compliance, anti-money laundering program administration, and trust and fiduciary operations.

Steven Cornell, MBA, CIA, CAMS, Senior Manager, Moss Adams LLP
Steve has worked in the financial industry and internal audit arena for 12 years, holding positions in lending and operations, focusing the past six years in the internal audit and compliance field for financial institutions. Steve joined Moss Adams LLP in 2004 and devotes all of his time to consulting with financial institutions regarding operational and regulatory compliance matters, performing and managing operational audits and regulatory compliance reviews, and conducting loan examinations and anti-money laundering audits.

Paul Rainbow, CPA, CISA, CIA, CISSP, CTGA, GSLC, Manager, Moss Adams LLP
Paul is a member of the firm’s IT Auditing & Consulting Group. He has 12 years of local and national experience in accounting and information systems, with extensive audit and consulting experience in the area of IT controls specific to the Financial Institution industry. Paul’s expertise in technology consulting includes IT governance, IT planning, risk management, systems analysis, system implementation, security testing, policy development, audit program development, application controls, change management, and regulatory compliance.

Areti Moularas, Senior Manager, Moss Adams LLP
Areti is an Assurance Senior Manager with more than 7 years of public accounting experience and works primarily on financial institution clients, including credit unions and has experience with SEC registrants. Her experience includes audits of financial statements for banks, credit unions and mortgage lenders as well as audits of internal controls in accordance with the FDIC Improvement Act of 1991 and Section 404 of the Sarbanes Oxley Act.

Heidi Berenbrok, CPA, Senior Manager, Moss Adams LLP
Heidi has been in public accounting since 2000 and worked as an internal auditor for a financial institution prior to joining Moss Adams.  Her focus is serving financial institutions and she serves as the audit manager and engagement reviewer for several of our financial institution clients. She has spoken at a number of financial institution and credit union conferences. Her services to financial institutions have included financial statement audits, internal control evaluations, and loan file reviews.

Frequently Asked Questions

Will I receive CPE credits for the program?

Yes, you will. The school will be certified by the National Association of State Boards of Accountancy (NASBA) for 23 credits.

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