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Enhanced internal control helps growing bank comply with regulatory requirements

Challenge/Opportunity

A growing bank with assets approaching $1 billion was nearing the threshold for having to comply with FDICIA regulatory requirements, including an audit of its internal control over financial reporting. As an SEC-registered emerging growth company, the bank qualified for a reprieve from complying with SOX 404 requirements, but only for a limited time.

Solution

BerryDunn advisors worked with our client to:

  • Educate bank staff on FDICIA requirements and the COSO Framework
  • Facilitate financial statement and fraud risk assessments
  • Conduct on-site meetings with each bank department, helping develop required system narratives
  • Identify the bank’s control objectives and key controls by financial statement assertion and document supporting evidence
  • Equip management with tools to help properly map the bank’s key controls to the COSO Framework
  • Develop FDICIA Key Control Matrices to summarize the bank’s key controls

Outcome

Backed by BerryDunn’s expertise, education, and tools, the bank enhanced its processes, procedures, and key control documentation for significant and high-risk financial reporting areas. The developed FDICIA Key Control Matrices will help the bank’s internal auditors test and make future updates to key controls, and mapping tools will provide the bank with audit evidence that supports the bank’s full compliance with FDICIA ICFR requirements and the COSO Framework. With the right controls, documentation, and testing plan in place, the bank is ready for a successful FDICIA ICFR audit.

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