The Office of the Comptroller of the Currency's Internal Auditing Needs Strengthening

GGD-80-8: Published: Nov 9, 1979. Publicly Released: Nov 9, 1979.

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The Office of the Comptroller of the Currency's (OCC) internal audit function was evaluated. The overall objective of internal auditing is to assist management in discharging its responsibilities by furnishing information, analysis, appraisals, and recommendations pertinent to the organization's execution of management policies and procedures.

The OCC Internal Audit Division has suffered from a lack of staff resources and limited coordination with other review efforts. With a small staff and in the absence of clear, current and written operating policies, informal operating practices have evolved. This, in turn, has resulted in an audit process needing more effective program planning, more consistent audit implementation, clearer reporting, and better followup on recommendations. A plan was recently approved which would reorganize and strengthen OCC internal audit activities; the plan needs to be strengthened further by clarifying Internal Audit's role and relationship with other review groups.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Comptroller of the Currency should: (1) provide Internal Audit with the additional staff resources necessary to effectively accomplish its organizational responsibility; (2) improve the technical skills of the Internal Audit staff, particularly in the area of computer auditing; (3) update the 1970 internal audit administrative circular to clarify Internal Audit's operational relationships, particularly with the external auditor and other internal review groups, and to reemphasize Internal Audit's broad scope of audit responsibilities, particularly the responsibility to perform economy and efficiency reviews and program evaluations of all important operational areas; (4) provide additional information in Internal Audit's annual program plan to make it conform with Office of Management and Budget guidance; (5) instruct the head of Internal Audit to immediately develop a written audit manual which includes standards, policies, and procedures for the development and use of written audit programs, the preparation of audit workpapers, and the establishment of consistent supervisory practices; (6) develop written reporting procedures which provide guidance on report form, processing and timing; and (7) develop written recommendation followup procedures to assure that internal and external audit recommendations are receiving appropriate attention.

    Agency Affected:


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