Regulatory Alerts2025-12-31
Banking Code of 1965 - Section 1407 Audit Requirements
The Commonwealth of Pennsylvania Department of Banking and Securities issues this guidance to clarify compliance with Section 1407 of the Banking Code following amendments to federal audit thresholds. Financial institutions must either conduct an annual financial audit by a Certified Public Accountant or utilize a Department-approved internal audit control system with a summary report. The document details the organizational, administrative, and coverage requirements for internal audit programs, including specific mandates for information systems, fiduciary activities, and outsourcing arrangements.
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