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Common use of Internal Audit Clause in Contracts

Internal Audit. (1) Within thirty (30) days, the Board shall review and revise the Bank’s internal audit program and ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (f) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (g) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit plan; (h) evaluate the Bank’s adherence to established policies, procedures and programs, including the Bank’s adherence to the consumer compliance, BSA/AML and third party management programs required to be developed under the terms of this Agreement; and (i) ensure an appropriate level of testing to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirements. (2) As part of this audit program, the Board shall evaluate the audit reports and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) The Board shall ensure that the Bank has processes, personnel (with respect to both the experience level and number of individuals employed), and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) The Board shall ensure that immediate actions are taken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such actions. (5) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy Comptroller.

Appears in 2 contracts

Samples: Banking Agreement (Pennsylvania Commerce Bancorp Inc), Banking Agreement

Internal Audit. (1) Within thirty ninety (3090) daysdays of the date of this Agreement, the Board shall review and revise the Bank’s internal audit program and ensure implementation of and Bank adherence to an develop a written independent, internal audit program that adequately identifies that: (i) comports with the Bank’s audit universe standards for Internal Audit Systems set forth in Section II.B of 12 C.F.R. Part 30, Appendix A, Interagency Guidelines Establishing Standards for Safety and includes a riskSoundness; (ii) is consistent with the guidance set forth in OCC Bulletin 2003-based evaluation of all financial 12, Interagency Policy Statement on the Internal Audit Function and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scopeIts Outsourcing (March 17, testing2003), and documentation shall be (iii) is sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's ’s operations; (fb) determine the Bank's level of compliance with all applicable laws, rules and regulationsrules, including consumer compliance and BSA/AML related laws and regulations; (gc) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (hd) evaluate adequately cover all areas; (e) establish a risk assessment process to accurately identify the scope and frequency of internal audits to ensure the program is appropriate for the Bank’s adherence to established policiessize, procedures complexity of activities, scope of operations, and programs, including the Bank’s adherence to the consumer compliance, BSA/AML and third party management programs required to be developed under the terms of this Agreementrisk profile; and (if) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (2) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Bank and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If Within ninety (90) days of the date of this Agreement, the Board shall ensure that the Bank maintains an audit tracking log that includes, at minimum, all outstanding audit findings, the proposed corrective action dates, the management member responsible for corrective actions, and the steps taken to address each corrective action. The description of the steps taken to address each corrective action must be updated no less than quarterly for each corrective action. No less than quarterly the Board’s designated committee is charged with responsibility for reviewing , or a Committee thereof, must review this audit tracking log to ensure that proper corrective actions are completed in a timely manner. Within ten (10) days of the review of the audit reportstracking log by Board, or a Committee thereof, a copy of the committee shall report its findings audit tracking log must be forwarded to the full BoardAssistant Deputy Comptroller. (3) The Board shall ensure that the Bank has processesaudit function is supported by an adequately staffed department or outside firm, personnel (with respect to both the experience level and number of the individuals employed), . Any internal auditors who are employees of the Bank must receive annual training on internal audit standards and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Articlepractices. (4) The Board shall ensure that the audit program is independent. The persons responsible for implementing the internal audit program described above shall report directly to the Board, or a Committee thereof, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be filed directly with the Chair of the Board of Directors, or another Director designated to receive such reports, and not through any intervening party. The Board, or a committee thereof, must meet at least quarterly with internal auditors to discuss findings and include discussion of the Board’s review of internal audit reports within meeting minutes. (5) The Board, or a Committee thereof, shall review and approve the audit scope and schedule at least annually. At least quarterly, the Board, or a Committee thereof, shall review the status of the audit schedule to ensure all audits have been completed in a timely manner. (6) All audit reports shall be in writing. The Board, or a Committee thereof, shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors the Board, or a Committee thereof, shall maintain a written record describing such those actions. The Board must also require that internal audit reports clearly state an overall conclusion, include a conclusion on the adequacy of internal controls in each review area, and clearly communicate corrective actions for each deficiency identified. (57) The audit staff shall have access to any records necessary for the proper conduct of its activities. The OCC shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. (8) Upon adoption, a copy development of the internal audit program required by paragraphs (1) through (7) of this Article, a copy shall be promptly submitted to the Assistant Deputy Comptroller for a prior written determination of no supervisory objection. At the next Board meeting following receipt of the Assistant Deputy Comptroller’s written determination of no supervisory objection to the internal audit program, the Board shall adopt and the Bank, subject to Board review and ongoing monitoring, shall implement and thereafter ensure adherence to the audit program.

Appears in 1 contract

Samples: Banking Agreement

Internal Audit. (1) Within thirty ninety (3090) days, the Board shall review adopt, implement, and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of covering all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scopeincluding but not limited to consumer compliance and mortgage banking, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's ’s operations; (fb) determine the Bank's ’s level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (gc) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (hd) evaluate the Bank’s adherence to established policies, procedures policies and programs, including the Bank’s adherence to the consumer compliance, BSA/AML and third party management programs required to be developed under the terms of this Agreementprocedures; and (ie) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (2) As part of this audit program, the Board shall shall: (a) develop and implement an effective risk assessment system; (b) ensure that the written audit plan and audit frequency correlate to the risk assessment; (c) review and approve the audit schedule to ensure an appropriate risk-based scope for internal audit activities; (d) ensure that management responses address all deficiencies identified by the audit and include a commitment to measurable corrective action; (e) ensure that all significant deficiencies are corrected and that management is held accountable for failure to correct audit deficiencies; (f) ensure that all audit reports are provided directly to the Board; (g) ensure that all audits are completed as scheduled; (h) ensure that internal audits include an audit program that clearly documents the audit scope (controls to be tested and sampling methodology) and provides an audit trail of work completed including supporting workpapers; and (i) evaluate the audit reports of any party providing services to the Bank, and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) The Board shall ensure that the Bank has processesaudit function is supported by an adequately staffed department or outside firm, personnel (with respect to both the experience level and number of the individuals employed), and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) The Board shall ensure that the audit program is independent. The persons responsible for implementing the internal audit program described above shall report directly to the Board, which shall have the sole power to direct their activities. (5) All audit reports shall be in writing. The Board shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such the deficiency, the projected corrective action, and the status of the corrective action. The audit staff shall evaluate in writing the effectiveness of the corrective action and recommend additional corrective actions, as necessary. (56) The audit staff shall have access to any records necessary for the proper conduct of its activities. The OCC shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. (7) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy Comptroller for review and determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall promptly implement and thereafter ensure Bank adherence to the internal audit program.

Appears in 1 contract

Samples: Banking Agreement

Internal Audit. (1) Within thirty ninety (3090) days, the Board shall review adopt, implement, and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank Association adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the BankAssociation's operations; (fb) determine the BankAssociation's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (gc) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (hd) evaluate the Bank’s Association's adherence to established policiespolicies and procedures, procedures and programs, including with particular emphasis directed to the Bank’s Association's adherence to the consumer complianceits loan policies concerning underwriting standards, BSA/AML problem loan identification and third party management programs required classification, transactions with affiliates, conflicts of interests, Troubled Debt Restructuring, and adherence to be developed under the terms of this AgreementOCC Bulletin 2006-46, Interagency Guidance on Commercial Real Estate (CRE) Concentration Management Practices; (e) adequately cover all areas; and (if) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (2) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Association, and shall assess the impact on the Bank Association of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) The Board shall ensure that the Bank Association has processes, personnel (with respect to both the experience level and number of individuals employed)personnel, and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) The Board shall ensure that the audit function is supported by an adequately staffed department or outside firm, with respect to both the experience level and number of the individuals employed. (5) The Board shall ensure that the audit program is independent. The persons responsible for implementing the internal audit program described above shall report directly to the Board, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be filed directly with the Board and not through any intervening party. (6) The Board, through its Audit Committee, shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such actionsthe deficiency, the projected corrective action, and the status of the corrective action. (57) The audit staff shall evaluate in writing the effectiveness of the corrective action and recommend additional corrective actions, as necessary. (8) The audit staff shall have access to any records necessary for the proper conduct of its activities. The OCC's examiners shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. (9) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy Comptroller.

Appears in 1 contract

Samples: Banking Compliance Agreement (Severn Bancorp Inc)

Internal Audit. (1) Within thirty (30one hundred and fifty y(150) days, the Board shall review adopt, implement, and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (fb) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (gc) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (hd) evaluate the Bank’s 's adherence to established policiespolicies and procedures, procedures and programs, including with particular emphasis directed to the Bank’s 's adherence to the consumer compliance, BSA/AML its loan policies concerning underwriting standards and third party management programs required to be developed under the terms of this Agreementproblem loan identification and classification; (e) adequately cover all areas; and (if) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (2) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Bank, and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) Within thirty (30) days, as part of this audit program, the Board shall define the role and responsibility of the Director of Internal Audit to be employed by the Bank, including the level of independence and authority being vested for the purpose of possessing authority to make meaningful changes to the audit process, and hire a full-time Director of Internal Audit to manage the relationship with any outside firm used and to ensure that workpapers and audit procedures are adequate. The Board shall provide that the Director of Internal Audit will report directly to the audit committee of the Bank. The Board shall ensure that the audit program is independent and that the Bank has processes, personnel (with respect to both the experience level and number of individuals employed)personnel, and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) All audit reports shall be in writing. The Board shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such those actions. (5) The audit staff shall have access to any records necessary for the proper conduct of its activities. National bank examiners shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. (6) If the Board becomes aware of one or more “material weaknesses” in the “internal control structure and procedures for financial reporting,” and if the weaknesses are not corrected within the quarter identified, the Board must notify the management of the holding company of the Bank of the existence of the “material weaknesses.” For purposes of this Article, “material weaknesses” and “internal control structure and procedures for financial reporting,” have the same meaning as the terms are used in Section 404 of the Xxxxxxxx-Xxxxx Act of 2002 and Statement on Auditing Standards No. 60 (“SAS 60”), respectively. (7) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy Comptroller.

Appears in 1 contract

Samples: Banking Agreement (Hudson Valley Holding Corp)

Internal Audit. (1) Within thirty sixty (3060) days, the Board shall review adopt, implement and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of establish a risk-based written audit plan, covering both financial and non-financial areas of the Bank, schedule that includes risk assessments to support the frequency and scope of reviews provides for all areas covered by the plan; audits on a regular basis; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; ; (fc) ensure adequate coverage in all areas, consistent with the degree of risk; (d) determine the Bank's level of compliance with all applicable laws, rules rules, and regulations; (e) in conjunction with the Bank's independent outside auditor, including consumer determine the Bank's level of compliance with standard accounting policies, including, but not limited to, GAAP and BSA/AML related laws FASB accounting standards; (f) evaluate the Bank's adherence to established policies and regulations; procedures, with particular emphasis directed to the Bank's adherence to its credit risk management policies; (g) assess and report the effectiveness ensure that all high-risk areas are fully audited on a regular basis, including transaction testing for adequacy of policies, procedures, internal controls, and management oversight relating to each area covered by the audit plan; ; (h) evaluate the Bank’s adherence to established policies, procedures and programs, including the Bank’s adherence available audit reports of any party providing services to the consumer compliance, BSA/AML Bank and third party management programs required to be developed under the terms of this Agreement; and (i) ensure an appropriate level of testing to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirements. (2) As part of this audit program, the Board shall evaluate the audit reports and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the ; and (i) establish an annual audit reports, the committee shall report its findings plan using risk based approach sufficient to the full Boardachieve these objectives. (3) The Board shall ensure that the Bank has processes, personnel (with respect to both the experience level and number of individuals employed), and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) The Board shall ensure that immediate actions are taken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such actions. (52) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy ComptrollerDirector. (3) The Board shall ensure that the audit function is supported by an adequately staffed department or outside firm, with respect to both the experience level and number of individuals employed. (4) The Board shall ensure that the audit program is independent. The persons responsible for implementing the internal audit program required by paragraph (1) shall report directly to the Board, or a committee thereof, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be reviewed and responded to by appropriate Bank management and, thereafter, filed with and approved by the Board, or a committee thereof. (5) All audit reports shall be in writing. The Board shall ensure that immediate actions are undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing those actions and the result of those actions. The audit reports and written record, as well as all supporting work papers of the audit staff, shall be readily available to OCC personnel upon request. (6) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the internal audit program.

Appears in 1 contract

Samples: Compliance Agreement (Metris Companies Inc)

Internal Audit. (1) The Internal Audit Executive (the “Auditor”) shall report directly to the Audit/Risk Committee of the Board, be evaluated by that group, although s/he may report administratively to the Chairman of the Board, President and Chief Executive Officer, and shall participate as an ex-officio member of the Disclosure Control Committee. (2) Within thirty ninety (3090) days, the Audit/Risk Committee of the Board shall review and revise take the Bank’s necessary steps to ensure the Bank has an internal audit program and ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s sufficient scope, testingfrequency, and documentation shall be sufficient staff to: (a) ensure the development detect irregularities, weak practices, violations of law and maintenance regulation, breaches of a risk-based audit planfiduciary duty, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency unsafe and scope of reviews for all areas covered by the planunsound banking practices; (b) ensure that assess and report the risk-based audit plan is annually approved by the Board or its designated committeeeffectiveness of policy, procedure, controls, and management relating to accounting and financial reporting; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, Bank establishes and only occurs with, the prior written approval of the Board or its designated committeemaintains adequate “internal controls over financial reporting; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan;accounting policy and procedures are functioning effectively and that necessary documentation and communication are occurring; and (e) detect irregularities review and weak practices in provide an opinion regarding whether regulatory reports beginning with the Bank's operations; quarter ending March 31, 2005 contain “material misstatements” within thirty (f30) determine the Bank's level days of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (g) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit plan; (h) evaluate the Bank’s adherence to established policies, procedures and programs, including the Bank’s adherence to the consumer compliance, BSA/AML and third party management programs required to be developed under the terms of this Agreement; and (i) ensure an appropriate level of testing to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirements. (2) As part of this audit program, the Board shall evaluate the audit reports and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Boardfiling. (3) The If the Audit/Risk Committee of the Board becomes aware of one or more “material weaknesses” in the “internal control structure and procedures for financial reporting,” and if the weaknesses are not corrected within the quarter identified, the Audit/Risk Committee of the Board shall ensure that notify management of Huntington Bancshares, Inc. of the Bank has processes, personnel (with respect to both existence of the experience level and number of individuals employed), and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article“material weaknesses. (4) The Upon completion of its annual audit of the Huntington Bancshares, Inc. financial statements, the Audit/Risk Committee of the Board shall ensure that immediate actions are taken obtain from the external auditor a list of all proposed adjustments to remedy deficiencies cited in audit reportsthe Bank’s books and records, and that auditors maintain a written record describing such actionswhether or not deemed material, along with an explanation of how the proposed adjustment was resolved. (5) Upon adoptionFor purposes of this Agreement, a copy “internal control structure and procedures for financial reporting” has the same meaning as that term is used in Section 404 of the internal audit program shall be promptly submitted to Xxxxxxxx-Xxxxx Act of 2002; “material weaknesses” has the Assistant Deputy Comptrollersame meaning as that term is used in Statement on Auditing Standards (“SAS”) No. 60 (AU 325.15); and “material misstatements has the same meaning as the term is used in the SEC’s Staff Accounting Bulletin No. 99 on Materiality (“SAB 99”).

Appears in 1 contract

Samples: Agreement Between Huntington National Bank and the Office of the Comptroller of the Currency (Huntington Bancshares Inc/Md)

Internal Audit. (1) The Internal Audit Executive (the “Auditor”) shall report directly to the Audit/Risk Committee of the Board, be evaluated by that group, although s/he may report administratively to the Chairman of the Board, President and Chief Executive Officer, and shall participate as an ex-officio member of the Disclosure Control Committee. (2) Within thirty ninety (3090) days, the Audit/Risk Committee of the Board shall review and revise take the Bank’s necessary steps to ensure the Bank has an internal audit program and ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s sufficient scope, testingfrequency, and documentation shall be sufficient staff to: (a) ensure the development detect irregularities, weak practices, violations of law and maintenance regulation, breaches of a risk-based audit planfiduciary duty, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency unsafe and scope of reviews for all areas covered by the planunsound banking practices; (b) ensure that assess and report the risk-based audit plan is annually approved by the Board or its designated committeeeffectiveness of policy, procedure, controls, and management relating to accounting and financial reporting; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, Bank establishes and only occurs with, the prior written approval of the Board or its designated committeemaintains adequate “internal controls over financial reporting; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan;accounting policy and procedures are functioning effectively and that necessary documentation and communication are occurring; and (e) detect irregularities review and weak practices in provide an opinion regarding whether regulatory reports beginning with the Bank's operations; quarter ending March 31, 2005 contain “material misstatements” within thirty (f30) determine the Bank's level days of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (g) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit plan; (h) evaluate the Bank’s adherence to established policies, procedures and programs, including the Bank’s adherence to the consumer compliance, BSA/AML and third party management programs required to be developed under the terms of this Agreement; and (i) ensure an appropriate level of testing to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirements. (2) As part of this audit program, the Board shall evaluate the audit reports and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Boardfiling. (3) The If the Audit/Risk Committee of the Board becomes aware of one or more “material weaknesses” in the “internal control structure and procedures for financial reporting,” and if the weaknesses are not corrected within the quarter identified, the Audit/Risk Committee of the Board shall ensure that notify management of Huntington Bancshares, Inc. of the Bank has processes, personnel (with respect to both existence of the experience level and number of individuals employed), and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article“material weaknesses. (4) The Upon completion of its annual audit of the Huntington Bancshares, Inc. financial statements, the Audit/Risk Committee of the Board shall ensure that immediate actions are taken obtain from the external auditor a list of all proposed adjustments to remedy deficiencies cited in audit reportsthe Bank’s books and records, and that auditors maintain a written record describing such actionswhether or not deemed material, along with an explanation of how the proposed adjustment was resolved. (5) Upon adoptionFor purposes of this Agreement, a copy “internal control structure and procedures for financial reporting” has the same meaning as that term is used in Section 404 of the internal audit program shall be promptly submitted to Sxxxxxxx-Xxxxx Act of 2002; “material weaknesses” has the Assistant Deputy Comptrollersame meaning as that term is used in Statement on Auditing Standards (“SAS”) No. 60 (AU 325.15); and “material misstatements has the same meaning as the term is used in the SEC’s Staff Accounting Bulletin No. 99 on Materiality (“SAB 99”).

Appears in 1 contract

Samples: Agreement Between Huntington National Bank and the Office of the Comptroller of the Currency (Huntington Preferred Capital Inc)

Internal Audit. (1) Within thirty (30) days, the The Board shall review and revise the Bank’s internal audit program and ensure implementation of and continued Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (fb) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (gc) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (hd) evaluate the Bank’s 's adherence to established policiespolicies and procedures, procedures and programs, including with particular emphasis directed to the Bank’s 's adherence to the consumer compliance, BSA/AML its loan policies concerning underwriting standards and third party management programs required to be developed under the terms of this Agreementproblem loan identification and classification; (e) adequately cover all areas; and (if) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (2) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Bank, and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) The Board shall ensure that the Bank has processes, personnel (with respect to both the experience level and number of individuals employed)personnel, and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) The Board shall ensure that the audit function is supported by an adequately staffed department or outside firm, with respect to both the experience level and number of the individuals employed. (5) The Board shall ensure that the audit program is independent. The persons responsible for implementing the internal audit program described above shall report directly to the Board, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be filed directly with the Board and not through any intervening party. (6) All audit reports shall be in writing. The Board shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such those actions. (57) Upon adoption, a copy The audit staff shall have access to any records necessary for the proper conduct of its activities. National bank examiners shall have access to all reports and work papers of the internal audit program staff and any other parties working on its behalf. (8) By April 30, 2008 and quarterly thereafter, copies of all completed audit reports shall be promptly submitted to the Assistant Deputy Comptroller.

Appears in 1 contract

Samples: Banking Agreement

Internal Audit. (1) Within thirty sixty (3060) days, the Board shall review adopt, implement and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of establish a risk-based written audit plan, covering both financial and non-financial areas of the Bank, schedule that includes risk assessments to support the frequency and scope of reviews provides for all areas covered by the planaudits on a regular basis; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (fc) ensure adequate coverage in all areas, consistent with the degree of risk; (d) determine the Bank's level of compliance with all applicable laws, rules and regulationsrules, including consumer compliance and BSA/AML related laws and regulations; (e) in conjunction with the Bank’s independent outside auditor, determine the Bank's level of compliance with standard accounting policies, including, but not limited to, GAAP and FASB accounting standards; (f) evaluate the Bank's adherence to established policies and procedures, with particular emphasis directed to the Bank's adherence to its credit risk management policies; (g) assess and report the effectiveness ensure that all high-risk areas are fully audited on a regular basis, including transaction testing for adequacy of policies, procedures, internal controls, and management oversight relating to each area covered by the audit plan; (h) evaluate the Bank’s adherence to established policies, procedures and programs, including the Bank’s adherence available audit reports of any party providing services to the consumer compliance, BSA/AML Bank and third party management programs required to be developed under the terms of this Agreement; and (i) ensure an appropriate level of testing to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirements. (2) As part of this audit program, the Board shall evaluate the audit reports and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the ; and (i) establish an annual audit reports, the committee shall report its findings plan using risk based approach sufficient to the full Boardachieve these objectives. (3) The Board shall ensure that the Bank has processes, personnel (with respect to both the experience level and number of individuals employed), and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) The Board shall ensure that immediate actions are taken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such actions. (52) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy ComptrollerDirector. (3) The Board shall ensure that the audit function is supported by an adequately staffed department or outside firm, with respect to both the experience level and number of individuals employed. (4) The Board shall ensure that the audit program is independent. The persons responsible for implementing the internal audit program required by paragraph (1) shall report directly to the Board, or a committee thereof, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be reviewed and responded to by appropriate Bank management and, thereafter, filed with and approved by the Board, or a committee thereof. (5) All audit reports shall be in writing. The Board shall ensure that immediate actions are undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing those actions and the result of those actions. The audit reports and written record, as well as all supporting work papers of the audit staff, shall be readily available to OCC personnel upon request. (6) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the internal audit program.

Appears in 1 contract

Samples: Agreement by and Between Direct Merchants Credit Card Bank, N. A. And the Office of the Comptroller of the Currency

Internal Audit. (1) Within thirty one-hundred and twenty (30120) days, the Board Board, or a designated committee of the Board, shall review adopt, implement, and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank adherence to an independent, independent internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s , addressing its scope, testing, and documentation shall be requirements sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (fb) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (gc) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (hd) evaluate the Bank’s 's adherence to established policiesrevised policies and procedures, procedures and programs, including with particular emphasis directed to the Bank’s 's adherence to the its loan, credit administration, BSA, consumer compliance, and information technology policies; (e) adequately cover all areas including but not limited to: information technology, BSA/AML , consumer regulations, financial reporting, and third party management programs required to be developed under the terms of this Agreementbanking operations; and (if) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areasachieve these objectives, including from which deviations in the BSA/AML area, testing that covers the adequacy Bank’s internal audits of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance more than 45 days will occur only with suspicious activity reporting requirementsBoard approval. (2) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Bank, and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) The Board shall ensure an appropriate level of testing to support the audit findings. (4) The Board shall ensure that the Bank has processesaudit function is supported by an adequately staffed department or outside firm, personnel (with respect to both the experience level and number of the individuals employed), and control systems to . (5) The Board shall ensure implementation of and adherence to that the audit program developed pursuant is independent. The persons responsible for implementing the internal audit program described above shall report directly to this Articlethe Board, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be filed directly with the Board and not through any intervening party, including any individual who is a director. (46) All audit reports shall be in writing and supported by adequate work papers. The Board shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain verify that appropriate actions have been taken and a written record describing such actionsthose actions is maintained. (57) Upon adoption, The Board must establish a copy formal audit tracking report that identifies exceptions and deficiencies in all areas of the internal audit program shall be promptly submitted to Bank, management’s response and follow-up, and time periods for correction for all exceptions identified by any Bank auditor or the Assistant Deputy Comptroller. (8) The audit staff shall have access to any records necessary for the proper conduct of its activities. National bank examiners shall have access to all reports and work papers of the audit staff and any other parties working on its behalf.

Appears in 1 contract

Samples: Banking Compliance Agreement

Internal Audit. (1) Within sixty (60) days of this Agreement, the Board shall establish an audit committee that complies with the requirements of 12 C.F.R. § 363.5. The audit committee shall meet at least quarterly. (2) The Board shall ensure that the audit function is supported by an adequately staffed department or outside firm, with respect to both the experience level and number of the individuals employed. (3) Within thirty (30) daysdays of this Agreement, the Board shall review and revise determine whether any changes are needed regarding the Bank’s internal audit program Internal Auditor, including the responsibilities, authority, structure, independence or skills of the Bank’s Internal Auditor. In particular, the Board shall ensure that the Internal Auditor operates independent of management and has sufficient training, authority, and skill to perform the assigned responsibilities. (4) Within thirty (30) days of this Agreement, the Board shall determine whether any changes are needed regarding the Internal Auditor’s supporting staff, including the responsibilities, authority, structure, independence, competencies, or capabilities of the Internal Auditor’s supporting staff. (5) Within sixty (60) days of this Agreement, the Board shall adopt, implement, and thereafter ensure implementation of and Bank adherence to an independent, independent and comprehensive internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient tothat: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments procedures to support the frequency and scope of reviews for all areas covered by the planassist in completing internal operations audits; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect detects irregularities and weak practices in the Bank's ’s operations; (fc) determine determines the Bank's ’s level of compliance with all applicable laws, rules and regulationsrules, including consumer compliance and BSA/AML related laws and regulations; (gd) assess assesses and report reports the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (he) evaluate evaluates the Bank’s adherence to established policiespolicies and procedures; (f) establishes a line of communication for audit reporting issues between the internal auditor, procedures audit committee, and programs, including the Bank’s adherence to the consumer compliance, BSA/AML board of directors; (g) ensures audit work papers and third party documentation of conclusions provide a meaningful audit trail and validation for findings and recommendations; (h) ensures timely management programs required to be developed under the terms of this Agreementresponses and corrective actions on identified weaknesses; and (i) ensure establishes an appropriate level of testing annual audit plan using a risk-based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (26) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Bank, and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (37) The Board shall ensure that the Bank has processes, personnel (with respect to both audit program is independent. The persons responsible for implementing the experience level and number of individuals employed), and control systems to ensure implementation of and adherence internal audit program described above shall report directly to the Board or the Board Audit Committee, which shall have the sole power to direct their activities. All reports prepared by the audit program developed pursuant to this Articlestaff shall be filed directly with the Board and/or Board Audit Committee (comprised of at least two (2) external directors) and not through any intervening party. (4) The Board shall ensure that immediate actions are taken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such actions. (5) 8) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy Comptroller.

Appears in 1 contract

Samples: Banking Compliance Agreement

Internal Audit. (1) Within thirty ninety (3090) daysdays after the effective date of this Agreement, the Board shall review and revise the Bank’s internal audit program to ensure sufficient risk based audit coverage by an adequately staffed department or outside firm, with respect to both experience level and ensure implementation number of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testingindividuals employed, and documentation shall be to ensure that audit scheduling, scope and testing are sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (fb) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance regulations and BSA/AML related laws and regulationsOCC guidance; (g) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit plan; (hc) evaluate the Bank’s 's adherence to established policies, procedures policies and programsprocedures, including the Bank’s 's adherence to the consumer compliance, BSA/AML its loan policies related to underwriting standards and third party management programs required to be developed under the terms of this Agreementproblem loan identification and classification; (d) ensure adequate audit coverage in all areas; and (ie) ensure an appropriate level of testing to support the audit findings in all areas, including in the BSA/AML area, testing that covers evaluate the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirements's internal control systems. (2) As part Within ninety (90) days after the effective date of this audit programAgreement, the Board shall evaluate establish, implement and thereafter ensure adherence to a process to: (a) track the auditor’s progress in completing the annual audit reports schedule developed to meet the objectives in paragraph (1); and (b) ensure the auditor maintains an appropriate audit trail, which documents the procedures performed and shall assess supports the impact on the Bank of any audit deficiencies cited conclusions contained in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) The Board shall ensure that the Bank has processes, personnel (with respect to both audit program is independent by requiring that the experience level person(s) responsible for implementing the internal audit program described above shall not be responsible for any operational area and number of individuals employed), and control systems to ensure implementation of and adherence that such person(s) reports directly to the Board, or a designated committee thereof, that shall have the sole power to direct their activities. All reports prepared by the audit program developed pursuant to this Articlestaff shall be filed directly with the Board or such designated committee and not through any intervening party. (4) The Board shall ensure that the auditor provides written reports detailing any exceptions, deficiencies or recommendations noted as a result of its review. The Board shall also ensure that immediate actions are taken undertaken to remedy deficiencies cited or to address other audit recommendations in audit these reports, and that auditors maintain the independent auditor maintains a written record describing such those actions. The Board, or a designated committee thereof, shall meet at least quarterly to review the auditor's reports and to verify timely follow-up on cited deficiencies and recommendations. (5) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy Comptroller. (6) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.

Appears in 1 contract

Samples: Banking Compliance Agreement

Internal Audit. (1) Within thirty one hundred twenty (30120) daysdays of the date of this Agreement, the Board shall review adopt, implement, and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies comports with the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas standards for Internal Audit Systems set forth in Section II.B of the Bank Interagency Guidelines Establishing Standards for inclusion in the Bank’s audit plan. The program’s scopeSafety and Soundness, testing, Appendix A to 12 C.F.R. Part 170 and documentation shall be is sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's ’s operations; (fb) determine the Bank's ’s level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (gc) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (hd) evaluate the Bank’s adherence to established policiespolicies and procedures, procedures and programs, including with particular emphasis directed to the Bank’s adherence to its loan policies concerning underwriting standards and problem loan identification and classification; (e) review and provide an opinion regarding whether regulatory reports beginning with the consumer compliance, BSA/AML and third party management programs required to be developed under quarter following execution of the terms Agreement contain “material misstatements” within thirty (30) days of filing; for purposes of this AgreementArticle, “material misstatements” has the same meaning as the term is used in the SEC’s Staff Accounting Bulletin No. 99 – Materiality (August 12, 1999); (f) adequately cover all areas; and (ig) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (2) The Board must ensure that changes to the audit schedule are based on changes in the risk profile of the department or area and is supported by the conclusions contained in a current, Board-approved risk assessment. (3) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Bank and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (34) The Board shall ensure that the Bank has processesaudit function is supported by an adequately staffed department or outside firm, personnel (with respect to both the experience level and number of the individuals employed), and control systems to . (5) The Board shall ensure implementation of and adherence to that the audit program developed pursuant is independent. The persons responsible for implementing the internal audit program described above shall report directly to this Articlethe Board, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be filed directly with the Board and not through any intervening party. (46) The Board shall ensure that services performed by those outside the institution are completed under a current engagement letter, or an equivalent, that details the agreed upon services, scope, timeframes, and costs of the arrangement. This agreement should be reviewed and approved by the Board or a committee thereof and should be updated annually. (7) All audit reports shall be in writing. The Board shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such those actions. (58) The Board must ensure that audit follow-up includes a review of the Bank’s actions to implement corrective actions. The internal auditor must verify corrective actions have been completed and test or sample the adequacy of those actions. Audit issues must only be considered closed or corrected once a subsequent internal audit verifies the desired internal controls have been implemented and are effective. (9) The audit staff shall have access to any records necessary for the proper conduct of its activities. Examiners shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. (10) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy ComptrollerComptroller within ten (10) days of Board approval. (11) The Board shall ensure that the Bank has processes, personnel, and control systems to ensure implementation of and adherence to the program developed pursuant to this Article.

Appears in 1 contract

Samples: Banking Compliance Agreement

Internal Audit. (1) Within thirty one hundred and fifty y (30150) days, the Board shall review adopt, implement, and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (fb) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (gc) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit planaccounting and financial reporting; (hd) evaluate the Bank’s 's adherence to established policiespolicies and procedures, procedures and programs, including with particular emphasis directed to the Bank’s 's adherence to the consumer compliance, BSA/AML its loan policies concerning underwriting standards and third party management programs required to be developed under the terms of this Agreementproblem loan identification and classification; (e) adequately cover all areas; and (if) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (2) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Bank, and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) Within thirty (30) days, as part of this audit program, the Board shall define the role and responsibility of the Director of Internal Audit to be employed by the Bank, including the level of independence and authority being vested for the purpose of possessing authority to make meaningful changes to the audit process, and hire a full-time Director of Internal Audit to manage the relationship with any outside firm used and to ensure that workpapers and audit procedures are adequate. The Board shall provide that the Director of Internal Audit will report directly to the audit committee of the Bank. The Board shall ensure that the audit program is independent and that the Bank has processes, personnel (with respect to both the experience level and number of individuals employed)personnel, and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) All audit reports shall be in writing. The Board shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such those actions. (5) The audit staff shall have access to any records necessary for the proper conduct of its activities. National bank examiners shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. (6) If the Board becomes aware of one or more “material weaknesses” in the “internal control structure and procedures for financial reporting,” and if the weaknesses are not corrected within the quarter identified, the Board must notify the management of the holding company of the Bank of the existence of the “material weaknesses.” For purposes of this Article, “material weaknesses” and “internal control structure and procedures for financial reporting,” have the same meaning as the terms are used in Section 404 of the Xxxxxxxx-Xxxxx Act of 2002 and Statement on Auditing Standards No. 60 (“SAS 60”), respectively. (7) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy Comptroller.

Appears in 1 contract

Samples: Banking Compliance Agreement

Internal Audit. (1) Within thirty sixty (3060) days, the Board shall review adopt, implement, and revise the Bank’s internal audit program and thereafter ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) test and audit internal controls to ensure the development ongoing compliance with sound risk management systems and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plancontrol processes; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (fc) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (g) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit plan; (hd) evaluate the Bank’s 's adherence to established policiespolicies and procedures, procedures and programs, including with particular emphasis directed to the Bank’s 's adherence to the consumer compliance, BSA/AML its loan policies concerning underwriting standards and third party management programs required to be developed under the terms of this Agreementproblem loan identification and classification; (e) ensure adequate audit coverage in all areas; and (if) ensure establish an appropriate level of testing annual audit plan using a risk based approach sufficient to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (2) As part of this audit program, the Board shall evaluate the audit reports of any party providing services to the Bank, and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (3) The Board shall ensure that the Bank has processes, personnel (with respect to both the experience level and number of individuals employed)personnel, and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) The Board shall ensure that the audit function is supported by an adequately staffed department or outside firm, with respect to both the experience level and number of the individuals employed. (5) The Board shall ensure that the audit program is independent. The persons responsible for implementing the internal audit program described above shall report directly to the Board, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be filed directly with the Board and not through any intervening party. (6) All audit reports shall be in writing. The Board shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such those actions. (57) The audit staff shall have access to any records necessary for the proper conduct of its activities. National bank examiners shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. (8) Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy ComptrollerComptroller for review and approval.

Appears in 1 contract

Samples: Banking Agreement

Internal Audit. (1) Within thirty forty-five (3045) days, the Board shall review and revise update the existing audit policy, incorporating a formal risk assessment of the Bank’s audit needs, and determining an adequate scope and frequency for internal audit program and ensure implementation of and Bank adherence to based on the risks inherent in the Bank’s operations, including the risks inherent in the Bank’s role as servicer for the Master Trust. The revised audit policy shall establish an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion complies with guidelines set forth in the BankOCC’s audit planHandbook on Internal and External Audit and related issuances. The program’s scope, testing, and documentation shall be sufficient tointernal audit program shall: (a) ensure describe the development organization and maintenance of a risk-based audit plan, covering both financial and non-financial areas function of the Bank’s audit function, that includes risk assessments to support the frequency including duties and scope of reviews for all areas covered by the planresponsibilities; (b) ensure that provide for a formal risk assessment process of the risk-based audit plan is annually approved by the Board or its designated committeeBank’s significant business activities and inherent risks; (c) ensure adequate audit coverage of all functional areas of Bank operations that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval are impacted as a result of the Board or its designated committeeBank’s role as originator of the extensions of credit and servicer for the Master Trust assets, including credit operations, marketing, account management, customer service and underwriting; (d) ensure that detail the Board or its designated committee maintains a process to track adherence to the approved development of an adequate audit planplan and audit cycle; (e) detect irregularities and weak practices in the Bank's operations; (f) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (g) assess and report evaluate the effectiveness of Bank's adherence to established policies, procedures, controls, and management oversight relating to each area covered by internal controls in all functional areas of the audit planBank; (h) evaluate provide a formal follow-up process to ensure that deficiencies and recommendations identified by internal audit are corrected and implemented in a timely manner, and that the Bank’s adherence to established policies, procedures corrective actions are documented; (i) require that the Board receive status reports regarding any outstanding deficiencies and programs, including the Bank’s adherence to the consumer compliance, BSA/AML and third party management programs required to be developed under the terms of this Agreementrecommendations identified by internal audit; and (ij) ensure an appropriate level of testing to support require that the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of Board formally review and update the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions ’s audit programs, policies, and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsprocedures, at a minimum, on an annual basis. (2) Within sixty (60) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to the revised audit policy. (3) In connection with development of the revised audit policy, the Board shall reassess the structure and reconfirm the role of the audit committee. To the extent the audit committee overlaps with the audit committee for the Bank’s parent, the Board shall ensure that the audit committee provides sufficient priority and attention to specific needs of the Bank so that the audit committee effectively functions as an audit committee on behalf of the Bank. (4) The Board shall ensure the engagement of audit staff qualified to assess, and who are experienced in, the risks posed by the Bank’s operations, including the risks in servicing the Master Trust assets, and vendor management. The Board shall ensure that the audit function is supported by an adequately staffed department or outside firm, with respect to both the experience level and number of individuals employed. (5) The Board shall ensure that the audit program is independent. The persons responsible for implementing the internal audit program described above shall report directly to the Board, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be filed directly with the Board and not through any intervening party. (6) The audit staff shall have access to any books and records necessary for the proper conduct of its activities. National bank examiners shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. (7) As part of this audit program, the Bank shall receive audit reports from all affiliated service providers and material nonaffiliated third-party service providers that review the service provider’s internal control environment and compliance program as it relates to the service(s) or product(s) being provided to the Bank. The Board shall evaluate the these audit reports and shall assess the impact on the Bank of any audit deficiencies cited in such reports, including which, if any, of the service provider’s operations violate applicable laws and regulations, or are inconsistent with the Bank’s policies and procedures. If The Bank’s audit program shall provide a formal follow-up process to ensure the Board’s designated committee is charged with responsibility for reviewing deficiencies identified in the audit reports, the committee shall report its findings reports relating to the full Boardservice(s) or product(s) provided to the Bank are corrected in a timely manner, and the corrective action is documented. (38) The Bank may rely on audit services provided by Xxxxxxx’x, Inc., or any other affiliate, in connection with the Bank’s audit program, only after the Board has determined that those audit services to be provided are adequate to meet the Bank’s audit needs, and comply with the requirements of this Article. The Board’s determination shall be adequately documented in the Bank’s revised audit policy. (9) The Board shall ensure that the Bank has processes, personnel (with respect to both the experience level and number of individuals employed)personnel, and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article. (4) The Board shall ensure that immediate actions are taken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such actions. (510) Upon adoption, a copy of the internal revised audit program policy shall be promptly submitted to the Assistant Deputy Comptroller.

Appears in 1 contract

Samples: Banking Agreement

Internal Audit. (1) The Internal Audit Executive (the “Auditor”) shall report directly to the Audit/Risk Committee of the Board, be evaluated by that group, although s/he may report administratively to the Chairman of the Board, President and Chief Executive Officer, and shall participate as an ex-officio member of the Disclosure Control Committee. (2) Within thirty ninety (3090) days, the Audit/Risk Committee of the Board shall review and revise take the Bank’s necessary steps to ensure the Bank has an internal audit program and ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s sufficient scope, testingfrequency, and documentation shall be sufficient staff to: (a) ensure the development detect irregularities, weak practices, violations of law and maintenance regulation, breaches of a risk-based audit planfiduciary duty, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency unsafe and scope of reviews for all areas covered by the planunsound banking practices; (b) ensure that assess and report the risk-based audit plan is annually approved by the Board or its designated committeeeffectiveness of policy, procedure, controls, and management relating to accounting and financial reporting; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, Bank establishes and only occurs with, the prior written approval of the Board or its designated committeemaintains adequate “internal controls over financial reporting; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan;accounting policy and procedures are functioning effectively and that necessary documentation and communication are occurring; and (e) detect irregularities review and weak practices in provide an opinion regarding whether regulatory reports beginning with the Bank's operations; quarter ending March 31, 2005 contain “material misstatements” within thirty (f30) determine the Bank's level days of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (g) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by the audit plan; (h) evaluate the Bank’s adherence to established policies, procedures and programs, including the Bank’s adherence to the consumer compliance, BSA/AML and third party management programs required to be developed under the terms of this Agreement; and (i) ensure an appropriate level of testing to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirements. (2) As part of this audit program, the Board shall evaluate the audit reports and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Boardfiling. (3) The If the Audit/Risk Committee of the Board becomes aware of one or more “material weaknesses” in the “internal control structure and procedures for financial reporting,” and if the weaknesses are not corrected within the quarter identified, the Audit/Risk Committee of the Board shall ensure that notify management of Huntington Bancshares, Inc. of the Bank has processes, personnel (with respect to both existence of the experience level and number of individuals employed), and control systems to ensure implementation of and adherence to the audit program developed pursuant to this Article“material weaknesses. (4) The Upon completion of its annual audit of the Huntington Bancshares, Inc. financial statements, the Audit/Risk Committee of the Board shall ensure that immediate actions are taken obtain from the external auditor a list of all proposed adjustments to remedy deficiencies cited in audit reportsthe Bank’s books and records, and that auditors maintain a written record describing such actionswhether or not deemed material, along with an explanation of how the proposed adjustment was resolved. (5) Upon adoptionFor purposes of this Agreement, a copy “internal control structure and procedures for financial reporting” has the same meaning as that term is used in Section 404 of the internal audit program shall be promptly submitted to Xxxxxxxx- Xxxxx Act of 2002; “material weaknesses” has the Assistant Deputy Comptrollersame meaning as that term is used in Statement on Auditing Standards (“SAS”) No. 60 (AU 325.15); and “material misstatements has the same meaning as the term is used in the SEC’s Staff Accounting Bulletin No. 99 on Materiality (“SAB 99”).

Appears in 1 contract

Samples: Banking Agreement

Internal Audit. (1) Within thirty sixty (3060) daysdays of the date of this Agreement, the Board shall designate a committee of at least three (3) directors with relevant banking experience, to review and revise monitor the Bank’s implementation and adherence to the independent, internal audit program required by paragraph two (2) of this Article. A majority of the members of this committee shall not be an employee or controlling shareholder of the Bank or any of its affiliates (as the term “affiliate” is defined in 12 U.S.C. § 371c(b)(1)), or a family member of any such person. The composition of this committee shall not be identical to the composition of the Compliance Committee required by Article II of this Agreement. In the event of a change of the membership, the name of any new member shall be immediately submitted in writing to the Assistant Deputy Comptroller. (2) Within ninety (90) days of the date of this Agreement, the Board shall adopt, and the Bank (subject to review and ongoing monitoring by the committee established pursuant to paragraph one (1) of this Article) shall implement and thereafter ensure implementation of and Bank adherence to an independent, internal audit program that adequately identifies the Bank’s audit universe and includes a risk-based evaluation of all financial and non-financial areas of the Bank for inclusion in the Bank’s audit plan. The program’s scope, testing, and documentation shall be sufficient to: (a) ensure the development and maintenance of a risk-based audit plan, covering both financial and non-financial areas of the Bank, that includes risk assessments to support the frequency and scope of reviews for all areas covered by the plan; (b) ensure that the risk-based audit plan is annually approved by the Board or its designated committee; (c) ensure that any deviation of sixty (60) days or more from the Board approved audit plan requires, and only occurs with, the prior written approval of the Board or its designated committee; (d) ensure that the Board or its designated committee maintains a process to track adherence to the approved audit plan; (e) detect irregularities and weak practices in the Bank's operations; (fb) determine the Bank's level of compliance with all applicable laws, rules and regulations, including consumer compliance and BSA/AML related laws and regulations; (gc) determine the Bank’s level of compliance with the requirements of this Agreement; (d) assess and report the effectiveness of policies, procedures, controls, and management oversight relating to each area covered by accounting and financial reporting; (e) evaluate the audit planBank's adherence to established policies and procedures, with particular emphasis directed to the Bank's adherence to its loan policies concerning underwriting standards and problem loan identification and classification; (f) review and provide an opinion regarding whether regulatory reports beginning with the quarter ending March 31, 2015, contain “material misstatements” within thirty (30) days of filing; for purposes of this Article, “material misstatements” has the same meaning as the term is used in the SEC’s Staff Accounting Bulletin No. 99 on Materiality (“SAB 99”); (g) adequately cover all areas; and (h) evaluate the Bank’s adherence establish an annual audit plan using a risk based approach (with a written risk assessment) sufficient to established policies, procedures and programs, including the Bank’s adherence to the consumer compliance, BSA/AML and third party management programs required to be developed under the terms of this Agreement; and (i) ensure an appropriate level of testing to support the audit findings in all areas, including in the BSA/AML area, testing that covers the adequacy of the Bank’s: (i) customer risk identification practices; (ii) systems for monitoring transactions and accounts for suspicious activity; and (iii) identification of suspicious activity and compliance with suspicious activity reporting requirementsachieve these objectives. (23) As part of this audit program, the Board or the committee established pursuant to paragraph one (1) of this Article, shall evaluate the audit reports of any party providing services to the Bank, and shall assess the impact on the Bank of any audit deficiencies cited in such reports. If the Board’s designated committee is charged with responsibility for reviewing the audit reports, the committee shall report its findings to the full Board. (34) The Board shall ensure that the Bank has processesaudit function is supported by an adequately staffed department or outside firm, personnel (with respect to both the experience level and number of the individuals employed), and control systems to . (5) The Board shall ensure implementation of and adherence to that the audit program developed pursuant is independent. The persons responsible for implementing the internal audit program required by this Article shall report directly to this Articlethe Board, which shall have the sole power to direct their activities. All reports prepared by the audit staff shall be filed in writing directly with the Board and not through any intervening party. (46) All audit reports shall be in writing. The Board shall ensure that immediate actions are taken undertaken to remedy deficiencies cited in audit reports, and that auditors maintain a written record describing such those actions. The Board shall also ensure that actions undertaken to remedy deficiencies cited in any audit report are subject to independent verification, which shall be documented in the Bank’s records. (57) The audit staff shall have access to any records necessary for the proper conduct of its activities. The examiners shall have access to all reports and work papers of the audit staff and any other parties working on its behalf. Upon adoption, a copy of the internal audit program shall be promptly submitted to the Assistant Deputy Comptroller.

Appears in 1 contract

Samples: Banking Agreement