Case Study

Name

Institution

In brief, the case study depicts an account of Federal Deposit Insurance Corporation, which is liable for saving banks. In this context, their core responsibility is to ensure that banks comply with all federal regulations. In 2005, the FDIC started an audit in Southeast community bank that was founded in 1888. The bank consisted of fifteen branches within Southeast state. From the case study, the bank provides full range of services to the commercial and consumer market. Since its existence, the bank’s security staff and information technology has been small but, with dedicated team professionals, which impressed the audit team. With an attempt to investigate how the bank carried its duties, the audit firm depicted some inquisitive answers, which consequentially displayed their discontentment in their report. Typically, the audit firms were exasperated by the bank response that, information levels had never classified information and authorized protection levels. The bank was found guilty over for not compiling to federal regulations. This paper seeks to analyze the case study through answering the following questions.

1. Who should take the responsibility for this project?

The Southeast Community bank should take the responsibility for this project in ensuring that, the bank compile to federal regulations. Typically, the internal audits should diligently work together with the bank to offer guidance on auditing.

2. Is this one or two project?

From my opinion, this is one project that demands intervention of respective roles of bank and auditors. For the bank to achieve its respective goals there is need to involve people from different areas of expertise to ensure that the bank run smoothly.

3. Who should be involved in this projects

In this context, an audit manager should be involved in this project for the purpose of internal audit agenda of the bank. Audit manager works in hand with Audit Committee board of directors to govern the audit guidelines in addition, coordinates actions of bank’s external auditors. Duties and responsibilities include reviewing accounting procedures and conducting independent audits of bank activities and records. Similarly, an audit manager conduct, supervises, and report bank’s internal controls over financial reporting. In doing this, he recommends remedial action for suggestive improvement, which eventually assists to explore causes of errors and irregularities.

4. Would you engage external resources? Why or why not?

In this case, I would engage external resources to effectively carry out responsibilities in accordance with bank polices and applicable laws. This is because; the proportional of both internal and external management is essential for increasing productivity.

5. How would you gain consensus?

In this case, I would gain consensus by substantially involving external managers who in turn would provide an opportunity for creating a broad-based management. In doing this, the bank would place emphasize on developing qualified resources to monitor external manager.

What involvement should the board of Directors have?

The board of directors is appointed by shareholders to govern and monitor the bank maneuver. Board of directors should be involved in selecting the top executive officers, and consequentially review their performance. Additionally, board of directors should invent broad strategies and goals for the bank through setting priorities. They should effectively manage risk to limit the bank from exposure of any kind including financial, reputation, and legal, which h eventually maintains a balance between venture and watchfulness (Zopounidis, 2002).

References

Zopounidis, C. (2002). New Trends in banking Management. New York: Springer Publisher

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