Internal Audit Assistance and Assessment
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Internal Audit Assistance and Assessment

Representative Engagements

Internal audit is an institution’s third — and most independent and objective — line of defense in the internal control framework. In this critical role, the IA must be proactive in identifying and responding to new risks, while providing assurance that existing risks are sufficiently mitigated. The most effective IA teams demonstrate an unrelenting commitment to quality and continuous improvement. Staffing an IA team with the skilled and insightful resources necessary to monitor existing and emerging risks, regulatory developments, and supervisory expectations is a challenging and complicated endeavor.

 

Promontory offers a broad perspective on maintaining an independent, highly relevant, and effective IA function. Our professionals draw on their varied experience as former chairs of audit committees, leaders of IA departments, and senior regulatory officials. We offer a broad range of IA services, all guided by the principle of transferring knowledge, so that our expertise becomes embedded in the client’s IA activities. We help IA teams assess and strengthen IA stature and deliver audit activities that enhance and protect organizational value and provide effective challenge to management — thereby satisfying the heightened expectations of the audit committee, bank supervisors, and other key stakeholders.

Our IA practice provides the following core services:

  • Subject-matter expertise in specialized areas of regulatory compliance, including governance, risk management, model review, regulatory reporting, and anti-money-laundering and sanctions controls
  • IA quality assessments covering all aspects of the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing (either in supporting robust self-assessments or in performing an external independent assessment)
  • Gap assessments versus heightened bank supervisory expectations, particularly in the areas of independence, objectivity, stature, and the effectiveness of challenge provided to management
  • Process reviews involving the evaluation of control design, operating effectiveness, and sustainability
  • Validation of process and control improvements made in response to regulatory criticisms or adverse events
  • Co-sourcing of IA work
  • Expertise on audit-committee effectiveness and reporting

Representative Engagements

  • For a U.S. global systemically important bank, Promontory performed a global review of the AML IA program and operating model, including governance, organization and staffing, the audit universe, risk-assessment methodology, and audit reporting.
  • For a large European financial institution, Promontory provided an assessment of the IA function and an action plan for implementing recommended improvements. Promontory also conducted a benchmarking study of the IA function’s organizational structure, operating model, and internal activities, as compared with the client’s European and U.S. peer group.
  • For a large U.S. financial institution, Promontory conducted a review of the IA function, with the goal of identifying recommendations for enhancements, so that the federal bank regulators would consider the function “strong.” The evaluation covered all functional aspects of IA, including organizational structure, roles and responsibilities, audit plans, risk assessments, and reporting.
  • For a large U.S.-based financial institution, Promontory reviewed the IA function for consumer and small-business banking. As part of the review, Promontory evaluated the adequacy of the mandate of consumer audit for coverage of inherent risks, the audit risk assessment’s methodology and application, audit planning, and triggers for reassessing audit risk.

 

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