Pub. 7 2018 Issue 1

The CommunityBanker 18 The Evolution of Internal Audit By Michelle Fowler, President and founder, Fowler & Company, LTD B anking has gone through profound changes and has become increasing- ly complex over the years. “Bank- er’s hours” and long golf lunches are long gone. But, has your internal audit department grown in complexity with your bank? Like banker’s hours, the days of just scheduling a few branch audits is no longer sufficient. Recent regulatory updates like OCC Bulletin 2016-47 – Revised Comptroller’s Handbook Book- let and Rescissions (for Internal and External Audit) made it increasingly clear that your internal audit department has become a hot topic not just for the OCC, but for all regulators. Although there have been some updates, much of the regulation related to Internal Audit has been around for years. However, not all audit shops were aligned with the regula- tions and were caught short when the regulators starting to ask more detailed questions. Just as the expectations for the bank increased so have those for the internal audit department. In my recent blog, I noted that Internal auditors are expected to be “experts” at ensuring that organizations reach their goals. They are called upon to assess ERM programs, to evaluate risk, prevent fraud, improve efficiency, and so much more. The stakes are high, and it’s