Nearly One-Third of Banking Audit Committees Now Require Both Financial and Information Technology Experts

A flash poll conducted by Baker Tilly Virchow Krause, LLP (Baker Tilly) indicates nearly one-third of banking institutions’ audit committee charters require both a financial expert and information technology expert.

“Once a banking institution reaches the $500 million threshold, the Office of the Comptroller of the Currency requires banking audit committees to establish a charter,” Timothy Kosiek, CPA, Baker Tilly partner and firm leader of the depository and lending practice, said. “Although there are many components within the charter, the main purpose is to establish the scope and objectives of the committee and its members.”

“Having a financial expert on the audit committee is a requirement, however, there is a growing expectation that audit committees also include a technology expert,” Christopher Groven, CPA, manager in Baker Tilly’s financial services practice group, said. “This emerging trend not only addresses the bank’s financial reporting requirements, but also the concern of the security over customer data and additional information that is maintained and used by the bank.”

Baker Tilly recently held an educational webinar, Banking audit committee 101: Understanding and executing your fiduciary duty, to assist depository and lending industry professionals to understand the roles and responsibilities of banking audit committees and gain knowledge about best practice for communicating with external and internal auditors.

The webinar presenters discussed:

The roles and responsibilities of an audit committee
Tactics for effective oversight of internal controls within an organization
Best practices for communicating with external and internal auditor functions

A recording of the webinar is available at bakertilly.com/insights/banking-audit-committee-101-understanding-and-executing-your-fiduciary-duty/.