Regulatory Alerts2005-02-15
OFI Bulletin 01-2005 Audit and Auditor Requirements and New Examination Procedures
The Office of Financial Institutions issued this bulletin to clarify internal and external audit obligations for state-chartered banks and thrifts while outlining updated examiner procedures. Institutions must maintain a dedicated internal audit function overseen by an Audit Committee, secure annual external audits tailored to their asset size, and ensure their CPA firm adheres to AICPA independence rules when providing outsourced internal audit services. Examiners will now conduct expanded reviews of executive expense documentation, business entertainment reimbursements, credit card account statements, and CPA peer review reports to verify operational compliance and audit trail integrity.
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