Non-Audit Services

Elliott Davis Decosimo has depth and experience in operations of community banks and the knowledge to provide a number of services to financial institutions. A significant portion of our financial institutions client base includes clients for which we provide the following non-audit services:

Outsourced Internal Audit

A sound control environment must include an effective internal audit function. Our team assists each internal audit client by first completing a comprehensive risk assessment. We then tailor each bank’s audit program and procedures to address the specific risks identified in the assessment.

External Loan Reviews

As with internal audit, an independent credit review process is an essential element in monitoring the overall risk in an institution’s loan portfolio and may be accomplished by a third party. Our team can assist the organization in determining the most appropriate scope and approach to address this need, given the particulars of its credit operation.

Regulatory Compliance Audits

Board members and management of financial institutions bear significant responsibility to ensure that their institution is in compliance with the large volume of federal and state regulations and acts that are required in today’s regulatory environment. Our regulatory compliance professionals can assist you with effectively managing your risk by staying on top of these requirements. Many members of our regulatory compliance team have worked in financial institutions before joining the firm, so they understand the unique regulatory challenges that financial institutions are faced with. The regulatory compliance services we offer include:

  • Assessment of compliance audit function;
  • Assessment of compliance program;
  • Compliance exam preparation;
  • Compliance risk assessments;
  • Ongoing compliance monitoring;
  • Outsourced or co-sourced compliance audits:
    • Automated Clearing House (“ACH”)
    • Bank Secrecy Act (“BSA”)/Anti-Money Laundering (“AML”)
    • Deposit, Lending and other regulations and acts
    • Lending Regulations & Acts
  • Regulatory reporting

Bank Secrecy Act (BSA) / Anti-Money Laundering (AML) Model Validation

More and more, we are seeing in the industry a call from the regulatory community to have key models validated in line with the Supervisory Guidance on Model Risk Management that was issued by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board in 2011. We have responded by adding specific BSA resources to our team of professionals who are knowledgeable in reviewing the various aspects of a BSA model. Our model validation services include a review and validation of the model design, model implementation, data and system sources and feeds, process design and model documentation.

Interest Rate Risk and Liquidity Testing

Our team can provide the required independent review of your interest rate risk and liquidity management process, including validating the interest rate risk and liquidity model through testing of data inputs and outputs, in addition to providing model calculations. We also review the bank’s system of internal controls surrounding the interest rate risk and liquidity function.

Allowance for Loan Loss Validation

Bank regulators are focused on model validations, particularly for the allowance for loan losses. Our experience with numerous in-house models and purchased models makes our team uniquely qualified to validate a bank’s ALLL model.

Information System Audits and Information Security Reviews

Our CISA and CISSP certified professionals provide information systems audits, information security reviews, assistance relating to control system requirements of SOX, procedures conducted as part of an outsourced internal audit and SSAE 16 reports. Information systems audits and security reviews are performed in accordance with FFIEC guidance.

SSAE 16 (SAS 70) Reports

The increased focus on a company’s internal control structure mandated by Sarbanes-Oxley has increased the need and importance of SSAE 16 (SAS 70) reports for servicing organizations. Our professionals help service organizations review their transaction processing and prepare appropriate control structure reports on those processes.

Trust Reviews

Our professionals can assist you with both meeting regulatory agency compliance requirements, and in creating a sound and effective control environment surrounding trust departments. These goals are achieved through walk-throughs and review of processes and controls, as well as detailed account testing.