Auditing
How We Help
M.K. Madden assists community banks in meeting ongoing regulatory needs and provides compliance and auditing services on a project-by-project basis. We strive to seamlessly become part of your team, providing not only high-quality services, but also proactive advice and a creative approach to problem solving.
At M.K. Madden, we work with you to optimize your bank’s risk management procedures, increase profitability and encourage value creation to give your bank the competitive edge it needs to succeed. Adding value to all of our community bank audit engagements is a team that will provide insight on how different operational aspects of your organization affect its risk profile and overall financial health.
The types of audit services M.K. Madden provides include:
Bank management is responsible for the overall objectives and strategy of their bank, including the enforcement of bank policies and best practices. Directors’ Examinations can be an effective and efficient tool for banks to target specific procedures to be performed. This exam helps Board of Directors (BOD) stay abreast of the condition to help manage liability. The exam is subject to state law minimum requirements, but may be tailored to focus attention on specific areas of concern or higher risk.
M. K. Madden can help ensure your bank is in compliance by helping you meet the minimum standards required for a director’s examination. The scope of the examination consists primarily of a review of the bank’s general internal controls and the verification of certain bank assets and liabilities necessary to satisfy the requirements of the FDIC and Kansas Office of the State Bank Commissioner.
M.K. Madden’s internal audit/agreed-upon procedures methodology, framework and tools helps to ensure consistency in approach, execution and quality—and most importantly—your satisfaction with our services.
The Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Audit is intended to assess the effectiveness of the financial institution’s BSA/AML compliance program and the financial institution’s compliance with the regulatory requirements pertaining to the Bank Secrecy Act, including a review of the financial institution’s risk management practices.
Examination procedures apply risk-based testing to determine the effectiveness of policies, procedures and processes, as well as transaction testing to evaluate the controls in place and risk management processes related to BSA/AML, the USA Patriot Act, Customer Identification Program and Office of Foreign Assets Control (OFAC) compliance.
M.K. Madden can help you comply with requirements for an independent review of your compliance program commensurate with your bank’s specific risks. Our audit takes a comprehensive approach, taking into account guidance provided by federal and state regulators. This audit is required every 12 to 18 months.
The purpose of this review is to determine if the bank’s policies, procedures and processes have any disparate impact and identify unfair treatment or overt discrimination. This review provides an assessment to ensure there are no discriminatory practices in residential real estate-related transactions.
M.K. Madden’s loan review services can help banks assess risk, tighten credit administration practices and improve profitability. Our team can help assess the repayment risk of selected borrowers, reduce loan/lease losses and credit related problems, improve compliance with internal standards and develop recommendations to help reach your goals.
The NACHA Operating Rules require all participating depository financial institutions to conduct a risk-based ACH Rules Compliance audit each year. M.K. Madden’s services are designed to assist in identifying areas of potential risk and assess internal controls, including adequate management, information and reporting systems to monitor and mitigate these risks. M.K. Madden utilizes the EPCOR audit workbook procedures to complete the audit.
M.K. Madden’s information technology review and audit incorporates industry best practices to evaluate your bank’s controls, risk management and internal processes. We’ll help you understand the unique risks your organization faces, including cybersecurity threats. Then we’ll help you develop mitigation strategies tailored to your technology environment.
Interest Rate Risk is the risk to earnings or capital that arises from changing interest rates and the resulting impact on a bank’s balance sheet.
M.K. Madden conducts an IRR review that will serve as a means to independently assess the adequacy of the bank’s measurement system.
M.K. Madden provides SAFE Act audit services for the independent testing of our clients’ compliance with the requirement of the 12 CFR Part 1007, “SAFE Mortgage Licensing Act – Federal Registration of Residential Mortgage Loan Originators (Regulation G). This examination must be completed independently on an annual basis for covered financial institutions engaged in residential mortgage lending.
M.K. Madden will conduct a review of your mortgage licensing program using federal consumer compliance regulations. The audit will focus on management oversight, policies and procedures, staff training and transaction testing. Our goal is to keep your financial institution safe and sound by testing for your compliance with the SAFE Act and other related regulations and making suggestions to improve your processes.
M.K. Madden will evaluate the effectiveness of the bank’s processes for ensuring compliance with applicable laws and regulations including Acts under Fair Lending Laws and Regulations, Consumer Compliance Lending Issues, Consumer Compliance Depository Issues, Unfair and Deceptive Practices, Privacy and Consumer Information, Retail Sales, Other Consumer Compliance Issues and Community Reinvestment Act.
A profit plan is an overall forecast of the income statement for the period based on management’s decisions, intentions, and their estimation of economic conditions. It addresses such things as the anticipated level and volatility of interest rates, local economic conditions, funding strategies, asset mix, pricing, growth objectives, etc.
Included in the profit plan is a budget. The adequacy of the budgeting and forecasting processes and corresponding management and board reporting are key considerations when assessing earnings. The budget outlines the anticipated income and expenses required to achieve the goals and objectives in the bank’s strategic plan. The budget should be sufficiently detailed to guide oversight and ongoing management of the bank.
Leverage our team's banking industry experience to minimize operational risks and improve internal controls in your community bank.
At M.K. Madden we place great value on building long-term relationships as a firm and as individuals who are committed to providing outstanding financial services.
Operating in one of the most scrutinized sectors in the nation, community banks’ management teams and boards are pressured to ensure the financial health and integrity of their institution at all times. M.K. Madden helps community banks navigate a gamut of accounting and auditing requirements, while addressing their evolving risk landscape.
Community Banks are unique. That is why we customize the audit process to meet your banks needs and provide the highest standards for delivering audit services through strong planning and coordination.
Through relationships with regulatory agencies, auditing firms and other banks, M.K. Madden provides perspective on best practices in the industry while staying ahead of the curve with regard to impending changes in regulations.
The role of the internal audit has been evolving from that of a compliance and fraud watchdog to that of a full-fledged partner in an institution’s overall risk management process.
Our services are delivered with one goal in mind…..enhancing the value of your institution. With deep industry experience within the banking industry, we provide proven services that are cost effective and designed to fit the needs of your institution.
