Topics
Auditing Electronic Funds Transfer
This practical, “hands-on” discussion of effective practices in auditing the electronic funds transfer function includes the following topics.
- Overview of the Electronic Funds Transfer Function
- Analysis of Electronic Funds Transfer Sub-Processes
- Internal Audit Objectives and Procedures
- Wire Transfer
- Automated Clearing House (ACH)
- Internet Banking
- Cash Management
- Remote Deposit Capture
- Mobile Deposit Capture
- NACHA Rules
Auditing the Deposit Function
This practical, “hands-on” discussion of effective practices in auditing the deposits function includes the following topics.
- New Accounts
- Dormant Accounts
- File Maintenance
- Overdrafts, Uncollected Funds, and Kiting Suspect Review
- Cash Letter Adjustments
- Item Processing
- Employee Accounts
- Reconcilements
Auditing the Branch Operations Function
This practical, “hands-on” discussion of effective practices in auditing the branch operations function includes the following topics.
- Surprise Cash Counts
- Consigned Items
- Night Depository
- Hold Mail
- Safekeeping Items
- Regulatory Disclosures
- Security Controls
- Safe Deposit Boxes
- Segregation of Duties Analysis
- Reconciliations
Effectively Communicating Audit Results
To be effective, an internal auditor needs to positively communicate audit issues both verbally and in writing. This session includes the following topics.
- Top 10 Techniques for Verbal Presentations
- Audit Report Structure
- Elements of an Audit Finding
FDICIA/SOx Compliance
FDICIA (the FDIC Improvement Act of 1991, as amended) and SOx (the Sarbanes-Oxley Act of 2002), in part, requires banks with assets exceeding $1 billion and/or certain publicly traded companies to assert that an internal control methodology is in place to ensure the integrity of the annual audited financial statements. This session includes the following topics.
- Project Planning
- Roles and Responsibilities
- Identification and Testing of Key Controls
- Evaluation of Control Deficiencies
Auditing the Accounting Function
This practical, “hands-on” discussion of effective practices in auditing the accounting function includes the following topics.
- General Accounting
- Financial Reporting
- Regulatory Reporting
- Accounts Payable
- Fixed Assets
Recent Trends in Financial Institution Fraud
Financial institution fraud continues to grow at an alarming rate. This session discusses fraud trends, characteristics and schemes.
- Fraud Statistics
- Suspicious Activity Report Filings
- ACFE’s 2022 Report to the Nations
- Pandemic-Related Fraud Schemes
- Fraud Characteristics and Conditions
- Weakness in the System of Internal Control
- Lack of Effective Internal Audit
- Limited or No Review of Employee Accounts
- Lack of Board Involvement or Weak Audit Committee
- Poor Staff Morale or High Turnover
- Incomplete or Missing Documentation
- Inadequate Monitoring Systems
- Internal Fraud Red Flags
- Fraud Schemes
- Loan Fraud
- Fraudulent Electronic Funds Transfers
- Teller Cash
- Certificates of Deposit
- Identity Theft
- Fictitious General Ledger Entry
- Phishing Scams
- Cyber Threats
About the Instructors
Joe Garcia, CPA
Joe is a senior manager in the Crowe LLP’s financial institutions consulting practice with 12 years of internal audit experience and is part of the Chicago office. Joe focuses on financial institution clients and is responsible for managing internal audit engagements, including performing risk assessments; overseeing the scoping, planning and execution of fieldwork; and reporting of audit results. Joe also performs FDICIA/SOx-related activities such as key control identification and evaluation of control design and operating effectiveness. Joe spends a significant amount of time performing technical reviews for his clients over the allowance for loan losses, asset liability management areas and enterprise risk management areas.
E. Michael Thomas, CPA, CIA, CBA, CFE, CRP, CFF, CRMA
Mike is an internal audit/fraud prevention consultant specializing in the banking industry. Mike recently retired as a partner in Crowe LLP’s financial institution risk consulting practice in the southeastern U.S. He has more than 40 years of broad-based experience specializing in the banking industry. At Crowe LLP, Mike’s responsibilities included advising clients in areas such as risk management, fraud prevention and quality assurance assessments. In addition, he coordinated contract services for internal audit, information technology audit, loan review and compliance outsourcing at financial institutions, as well as working with clients to reengineer their internal audit, risk management and fraud prevention functions. Before joining Crowe LLP, Mike was an internal audit services director for PricewaterhouseCoopers LLP and served as vice president and audit group manager for SunTrust Banks (now Truist).
Darren Shuster
Darren is a senior manager in Crowe LLP’s financial institution risk consulting practice in the southeastern U.S. He is responsible for managing internal audit and risk consulting services in a wide range of industries and companies. As a senior manager, Darren has been responsible for engagement planning, client communications and coordination; identifying risks, controls and gaps; creating remediation plans; testing design and/or operating effectiveness of controls; performing inquiries and walkthroughs; learning client’s processes; managing resources at multiple levels; and building client relationships. Darren also leads Crowe’s efforts in implementing COSO and SOx 404 internal control design and documentation activities at financial institution clients and developing methodologies for performing these activities. He primarily specializes in financial institutions ranging from small community to multibillion dollar financial institutions. His primary expertise is in the area of mortgage banking and fraud risk assessments, as well as in FDICIA and SOx control design and implementation. Darren is a member of the Institute of Internal Auditors.
Continuing Education
The Missouri Bankers Association is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State Boards of Accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website nasbaregistry.org.
Program Objectives — The Missouri Bankers Association is pleased to offer a seminar specifically targeted for internal audit, compliance and risk personnel in your financial institution. The purpose of the conference is to share tools and techniques intended to help internal audit and related professionals respond to the constant changes and challenges in the banking industry. This seminar incorporates practical audit strategies, best practices and case studies while also providing valuable reference materials.
Specialized Knowledge — 13 credits Instructional
Delivery Method: Group-Live