Western Independent Banker - November/December 2008 - (Page 26)

• • • • • • • who reviews the audit (Sarbanes-Oxley Act requires rotation every five years) Meet with management and external auditors to review quarterly financial statements Review quarterly disclosures under Management’s Discussion and Analysis Review press releases related to financial information Arrange periodic meetings on a separate basis with management, internal auditors and external auditors Discuss with internal and external auditors how they view management’s approach to monitoring and controlling financial risk Review with internal and external auditors problems and corrective actions on the audits, particularly scope restrictions and any disagreements with management Review all external auditor adjustments deemed “immaterial” by management • Establish policies for hiring employees of the external auditing firm • Ensure an independent reporting structure to the audit committee for the in-house or outsourced internal auditor Miscellaneous Audit Committee Standards and Actions Again, individual bank charters specify different requirements, but the following characteristics generally apply throughout the industry: • Most audit committees meet at least four times per year • Each meeting should include a private session with the internal and external auditors without bank management present • Most audit committees utilize an annual risk assessment to develop the strategic internal audit plan • Ensure adequate resources are allocated to the internal audit function, • • • • regardless of whether it is in-house or outsourced Document the consideration of all audit reports and their respective responses Maintain a corrective action log for reference at each meeting to monitor progress with audit and examination criticisms Ensure the security of the bank’s information technology network Promote cross-institutional communication and support between the internal audit and the bank’s risk management functions Len Filppu i s director of marketing communications for AuditOne LLC, a San Jose , Calif.–ba sed inde pendent internal audit firm specializing in banks and their service providers throughout the United States. Filppu and AuditOne can be reached at 408-980-8099 or www. audit-one.com. Wherever You Go There We Are. With offices in California, Oregon, Washington, Idaho and Arizona, the trusted partnership of America’s largest bankers’ bank is always nearby. Further, TIB has the strength and expertise to help any sized institution. It’s no wonder that over 1,300 community banks from coast to coast have already chosen TIB as their correspondent. Member FDIC (888) 772-4842 www.mybankersbank.com Trusted. Partner. 26 379448_TIB.indd 1 www.wib.org Western Independent Banker 4/24/08 4:18:07 PM http://www.audit-one.com http://www.audit-one.com http://www.mybankersbank.com http://www.wib.org

Table of Contents Feed for the Digital Edition of Western Independent Banker - November/December 2008

Western Independent Banker - November/December 2008 Contents A Message from the President & CEO A Practical Approach to Director Evaluations Director Assessment: New Standards for a High Performing Director The Best of the West: Traits of High Performing Banks Best Practices Checklist for the Audit Committee The Real Performance Metric: It Takes a Balance of Profitability and Growth to Be Successful The Role of the Board in a Credit Crisis A Bank Director's Obligation to Be Aware of Regulatory Change Benefits Tied to Performance Receive Higher Approval Rating by�Board Members Increasing Shareholder Value: Key Profitability Drivers Board Portals Streamline Efficiency for 21st Century WIB Service Corporation Report WIB Calendar Welcome New Members Index to Advertisers advertiser.com

Western Independent Banker - November/December 2008

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