Auditing Electronic Funds Transfer
- overview of the electronic funds transfer function
- analysis of electronic funds transfer subprocesses
- internal audit objectives and procedures
- wire transfer
- Automated Clearing House (ACH)
- internet banking
- cash management
- remote deposit capture
- mobile deposit capture
- NACHA Rules
- “Same-Day” ACH processing — 3-phase implementation
- Unauthorized Entry Fees (UEF)
- ACH Network risk and enforcement
- impact of EMV
- expanded addenda records (proposed)
- compliance and operational topics (proposed)
Auditing the Deposit Function
- new accounts
- dormant accounts
- file maintenance
- overdrafts, uncollected funds and kiting suspect review
- cash letter adjustments
- item processing
- employee accounts
Auditing the Branch Operations Function
- surprise cash counts
- consigned items
- night depository
- hold mail
- safekeeping items
- regulatory disclosures
- security controls
- safe deposit boxes
- segregation of duties analysis
Transforming Internal Audit
Words and phrases like speed of change, transformation and agility have become almost common place. Therefore, internal audit needs to be on the leading edge of this change to deliver the highest level of value to its stakeholders.
- internal audit strategy considerations
- process advancements
- resource implications
- effective use of technology
The Three Lines of Defense and Internal Audit’s Role in Effective Risk Management
- explain and discuss each line of defense
- recognize who the players are in each line of defense
- compare and contrast the risks and focus of each line, including the dependencies
- overview of computer-assisted audit techniques (CAAT)
- adding value through data analytics
- practical techniques and implementation challenges
- continuous monitoring
Recent Trends in Financial Institution Fraud
- fraud statistics
- Suspicious Activity Report (SAR) filings
- ACFE’s 2018 report to the nations
- 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
Wednesday, August 7
| 9 a.m.
| 9:30 a.m.
|| Auditing Electronic Funds Transfer
| 10:30 a.m.
| 10:45 a.m.
|| Auditing Electronic Funds Transfer (cont.)
| 11:15 a.m.
|| Auditing the Deposit Function
| 1 p.m.
|| Auditing the Deposit Function (cont.)
| 1:30 p.m.
|| Auditing the Branch Operations Function
| 2:30 p.m.
| 2:45 p.m.
|| Transforming Internal Audit
Thursday, August 8
| 9 a.m.
| 9:05 a.m.
|| The Three Lines of Defense and Internal Audit’s Role in Effective Risk Management
| 10:30 a.m.
| 10:45 a.m.
|| Data Analytics
| 1 p.m.
|| Data Analytics (cont.)
| 2:30 p.m.
| 2:45 p.m.
|| Recent Trends in Financial Institution Fraud
Who Should Attend
internal auditors, compliance offi cers, senior management and any officer in the bank responsible for deposit operations, corporate goverance or electronic funds
About the Instructors
Matthew G. Davis, CIA, is a manager in Crowe LLP’s Financial Institution Risk Consulting practice. He is responsible for managing internal audit engagements, overseeing the design and testing of SOX and FDICIA control environments, facilitating enterprise risk management projects, leading data analysis projects and continuous data monitoring, as well as providing assistance and guidance to clients on a wide range of risk related issues. His thought leadership developments have ranged from topics relating to third-party risk management to recommendations regarding
the most recent COSO 2013 release. His client experience ranges from small de novo banks to large multibillion asset sized financial institutions. Before joining Crowe LLP, Matthew was a consultant at a Fortune 50 company designing controls in a complex IT environment.
Matthew holds a bachelor’s of science degree in management with a concentration in finance from Purdue University. He is a certified internal auditor and trained in Lean Six Sigma.
E. Michael Thomas, CPA, CIA, CBA, CFE, CRP, CFF, CRMA, is a partner in Crowe LLP’s Financial Institution Risk Consulting practice in the southeastern United States. He has more than 40 years of broad-based experience specializing in the financial services industry. Mike’s responsibilities include advising clients in areas such as risk management, fraud prevention and quality assurance assessments. In addition, he coordinates contract services for internal audit, loan review and compliance outsourcing at financial institutions, as well as working with clients to re-engineer 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 Inc., a $200 billion bank holding company.
Mike is a frequent lecturer on internal audit, risk management, fraud prevention and banking-related topics. He is a distinguished faculty member of the Institute of Internal Auditors, an adjunct
faculty member of the Association of Certified Fraud Examiners and has been an instructor for the Bank Administration Institute, the Financial Manager’s Society, the Credit Union National
Association, the American Bankers Association and the Georgia, Alabama, Louisiana, Tennessee and Florida bankers associations. Mike is a member of the Institute of Internal Auditors, the
Association of Certified Fraud Examiners, the American Institute of Certified Public Accountants (including the Georgia Society) and the Bank Administration Institute.
Mike holds a BBA degree in accounting from Columbus State University and is a graduate of the Bank Administration Institute’s School for Bank Administration (Internal Audit Management). He is a certified public accountant, certifi ed internal auditor, certified bank auditor, certified fraud examiner and certified risk professional. He also is certified in financial forensics and has a certification in Risk Management Assurance.
Crowe LLP is a public accounting, consulting and technology firm with offices around the world. Crowe uses its deep industry expertise to provide audit services to public and private entities. The firm and its subsidiaries also help clients make smart decisions that lead to lasting value with its tax, advisory, risk and performance services. Crowe is recognized by many organizations as one of the best places to work in the U.S. As an independent member of Crowe Global, one of the largest global accounting networks in the world, Crowe serves clients worldwide. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries worldwide.
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. Th is seminar incorporates practical audit strategies, best practices and case studies while also providing valuable reference materials.
Specialized Knowledge – 13.5 credits
Instructional delivery method: Group-Live
For More Information
Contact the MBA Education Department at 573-636-8151 or email.