Our Credit Limits Audit Work Program is a comprehensive guide designed for auditors to systematically assess and ensure the adequacy of credit limits within a financial institution. Utilizing this program, an auditor can expect to achieve several key outcomes. Firstly, the program facilitates verification that credit limits are properly approved, ensuring adherence to internal policies and regulatory standards. Auditors will also confirm that the terms stated in subsidiary records are consistent with documented agreements—a crucial step for maintaining accuracy in financial reporting. Moreover, the work program outlines detailed audit procedures encompassing administration, planning, fieldwork and reporting stages.

Each phase includes specific steps such as discussing the audit scope with company personnel, reviewing loan examination reports for previously noted deficiencies, creating process maps and evaluating current practices against best practices. In essence, auditors utilizing this tool can expect a structured approach to evaluate credit risk management processes actively — ranging from recordkeeping and documentation to managing portfolio quality under varying economic conditions. 

Sample audit steps include:

• Conduct interviews with key individuals to gain an understanding of the process.
• Create process maps to visualize information flow and identify key points of control and risk.
• Review relevant written departmental policies and procedures/goals and objectives.
• Evaluate current practices against known best practices.