Audit Services

The Fullinwider Firm, LLC is committed to providing quality audit services to the financial institutions industry. With many years of providing audit services with two national accounting firms, Mr. Fullinwider brings that expertise and experience directly to work with your financial institution one on one. Additionally, the effective use of the audit technologies provides ensure engagements are conducted in a secured, efficient and effective manner.

Board of Directors Responsibilities

The responsibilities of the board of directors in determining the best approach for obtaining reasonable assurance the financial institution’s financial statements and regulatory reports are reliable and that the financial institution’s auditing program in adequate. The Fullinwider Firm, LLC can assist the board of directors with an in depth understanding of the alternatives so the board of directors and management can make an informed decision.

Financial Statement Audits

Audited financial statements provided the highest level of assurance in the auditing industry by the issuance of an opinion on the financial statements taken as a whole. It provides validation to the board of directors and shareholders that the financial statements prepared by management are materially accurate. Additional benefits include gaining an understanding of the internal controls in place and concluding if the significant controls are functioning as intended. Financial statement audits are required for financial institutions in excess of $500 million in total assets and certain banks with de novo status. The shareholder and board of directors may also find having an audit beneficial in anticipation of major events such as when a change of executive management is anticipated or occurs or in connection with the implementation up objectives within in strategic plan such as an acquisition.

Directors' Examinations

Directors’ Examinations continue to be a common alternative for financial institutions to meet their external audit requirements outlined in the Federal Financial Examination Council’s (FFIEC) policy statement “Interagency Policy Statement on External Auditing Programs of Banks and Savings Associations”. As the name suggest, these engagement were originally designed in the banking industry as an option for the financial institution’s board of directors to perform audit procedures as a way to validate the general ledger and certain operational processes. Regulators encourage that management engage an independent accountant to perform Directors’ Examinations. Certain states have required minimum audit procedures as a state law or regulation while others states may have no such requirement and the scope of the Directors’ Examination can be determined by agreement with the financial institution and the independent auditor. Directors’ Examination reports list findings as a result of the procedures performed and are provided to management and the board of directors. Management and the board of directors have the responsibility to evaluate findings that merit follow up and or resolution by management.

Trust Department Examinations

Trust Department Examinations are conducted in the same manner as Directors’ Examinations. However, since trust department assets are not included on the financial institution’s general ledger but rather on the trust departments separate general ledger a separate and unique set of procedures is performed that encompass accounting and physical securities controls, account activity controls, operational controls and administrative compliance. As with the Directors’ Examinations certain states have state required procedures while others do not and engagements can be designed by agreement between the financial institution and the independent auditor.

Employee Benefit Plans

Employee benefit plans that have over 100 employees eligible to participate are generally subject to an audit of the plan’s financial statements. The Department of Labor allows plans that have assets held by financial institution or insurance company to limit the scope of the audit in the area of investments. The audit becomes a part of the IRS Form 5500 filing and is filed electronically by the extended due date of the fifteenth day of the tenth month following the plan year. This is October 15th for calendar year in plans.

Mergers & Acquisitions

Liberty Acquisition Accounting

Generally Accepted Accounting Principles (GAAP) require financial institutions that meet the definition of a business combination under ASC 805 Business Combinations to account for the transaction through acquisition accounting. Acquisition Accounting requires the assets acquired and liabilities assumed to be recorded at the fair value on the date of acquisition. The Fullinwider Firm, LLC has consulted with financial institutions on a pre-acquisition basis and perform audits on financial statement post-acquisition. This experience can be beneficial to financial institution acquirer in the understanding of a proposed transaction and the confidence that the conclusions will withstand the rigors of audit procedures conducted in a financial statement audit.

Due Diligence

Due Diligence provides the acquirer an opportunity to investigate the target institution within a short period of time. Financial institutions benefit by the use of someone with a deep understanding of financial institution industry issues. Understanding potential risk within the loan portfolio as well as other aspects of financial and operational areas are important to avoid surprises later on. The Fullinwider Firm, LLC can provide assistance in this process with a vast knowledge of financial institution valuation, accounting and operational matters.

Regulatory Applications

Obtaining financial institution regulatory approval for proposed transactions on the Federal and state level is a key component of the acquisition process. The Fullinwider Firm, LLC has a unique understanding of the application process through the years of experience working with financial institution transactions. This benefits the acquiring financial institution by ensuring the regulatory approval process is completed on schedule in an efficient manner.

Risk Management

If you are starting an internal audit function from scratch with internal personnel or outsourcing certain complex areas of the audit plan, The Fullinwider Firm, LLC has years of experience in assisting financial institutions achieve their internal audit objectives…

Internal Audit

Internal audit provides the board of directors with an objective assessment of key areas risk to the financial institution. The size and complexity of the financial institution can drive the coverage and extent of internal audit procedures. Whether it is an in depth review or the testing ongoing key controls, internal audit provides a level of direct understanding that holds management accountable to the board of directors. If you are starting an internal audit function from scratch with internal personnel, outsourcing certain complex areas of the audit plan or looking for way to expand the current auditors abilities through one on one coaching, The Fullinwider Firm, LLC has years of experience in assisting financial institutions achieve their internal audit objectives. Additionally, computer assisted auditing techniques are used to analyze and mine data for trends and hot spots of high risk.

Bank Secrecy Act (BSA) Audits

Financial institutions are required to audit BSA compliance on an annual basis. These audit are required to be performed by an individual that is independent of the BSA process. The Fullinwider Firm, LLC provides financial institutions a quality outsourced alternative opposed to training additional staff to only perform the audit.

Automated Clearing House (ACH) Audits

The National Automated Clearing House Association (NACHA) has an audit requirement contained in the NACHA Operating Rules and Guidelines. Financial institutions are required to have the audit procedures listed in the Appendix Eight of the Rules annually by December 31st. The Fullinwider Firm, LLC has extensive experience with these audits and can provide practical and technical advice to the financial institution’s management and process owners.

Enterprise Risk Management

Enterprise Risk Management is a concept developed by The Committee of Sponsoring Organizations of the Treadway Commission (COSO). The underlying concept of Enterprise Risk Management is that every financial institution exists to provide value to shareholders. All financial institutions face uncertainty and the challenge is to determine how much uncertainty is acceptable as the financial institution strives to grow. To achieve this object Enterprise Risk Management provides a framework to:

Align risk appetite and strategy
Improving decisions to minimize risk
Limiting surprises and losses
Identifying risk pervasive in the organization
Capturing opportunities
Improving capital decisions

The Fullinwider Firm, LLC provides implementation assistance, day to day coaching and project management to ensure a consistent, effective and efficient approach is employed.

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816-781-6939

info@thefullinwiderfirm.com