Risk Management and Internal Audit Case Studies

“The FDIC Compliance Examination Process”

The Client Situation: 
The management of a regional New England bank required assistance in implementing a
FDICIA reporting process.

The GAP Approach: 
The GAP Team was retained to:

  • assess risk areas and business complexity
  • evaluate the compliance management system
  • provide a technology solution for the risk management process

The Benefits: 
GAP was able to:

  • identify and train a network of internal “risk champions” from various business
  • document the workflow, risk structure and level of risks
  • evaluate existing controls and identify gaps
  • train key staff in risk related issues
  • deliver a complete risk “heat map” showing absolute risks, offsetting controls
    and improvements
  • leave behind a fully functional risk management and FDICIA documentation

“How Many Financial Restatements Are Too Many?”

The Client Situation:
A publicly traded company was recently under SEC regulatory scrutiny regarding sales practices and possible accounting violations that were responsible for several restatements of financial statements in one fiscal year.

The GAP Approach:
The GAP Team conducted an investigative audit to:

  • review the domestic and international financial and accounting practices of the company
  • specifically review the rebate/buyer incentive programs and inventory accounting practices
  • investigate the extent of management’s knowledge of the practices and possible violations

The Benefits:
Under a complex, time-sensitive integrity risk management engagement, the team was able to:

  • summarize the pertinent worldwide financial activities and practices
  • discover and report employee abuses of sales rebate programs
  • provide detailed findings with evidence regarding the state of management’s knowledge

The team was able to set the course of remedial action to be taken, including revised internal controls.

Enterprise Risk Management:“Sarbanes-Oxley 404 Compliance” 

The Client Situation: 
A New York subsidiary of an international bank required assistance in its Sarbanes-Oxley
404 compliance effort.

The GAP Approach:
The GAP Team was retained to:

  • provide specialized expertise in the implementation of section 404
  • guide the implementation of new control processes where necessary

The Benefits: 
GAP was able to:

  • integrate with the client’s existing team seamlessly
  • provide flexible levels of support and service as needed to meet the client’s
    internal deadlines
  • work with high risk areas of the bank to implement new control procedures
    where necessary
  • provide specialist expertise for the unique business of the bank
  • provide access to emerging best practices for compliance with the Act to the
    internal Project Manager