Governance DocumentsThe following sections represent VistaBank’s policies as approved by their board of directors.We’re happy to answer any questions you may have about these policies.
Audit/Internal Controls Policy
The Bank will require sufficient independent confirmation of compliance with internal controls, accounting principles and policies, and adopted policies and procedures. Management recognizes that their goals and objectives for improvements in profitability and compliance with various laws and regulations may be impaired when necessary controls are either not in place or not operating effectively. Even the best controls are ineffective if those controls are circumvented by management. The Bank will maintain an adequate review system to promote adherence to policies and procedures for safe and sound operations.
DEFINITION AND PURPOSE
To comply with its fiduciary responsibility in protecting the assets of the Bank for its customers and shareholders, the Board of Directors feels that it is prudent to adopt a sound and extensive audit/internal control policy. This policy is designed to comply with regulatory encouragement of sufficient audit coverage to prevent unnecessary losses that may result from inadequate controls or inappropriate procedures. The purpose of this policy is to provide authority to the Board Audit Committee to oversee its fiduciary responsibilities and to delineate specific duties to internal and external auditors.
OBJECTIVES AND GOALS
The general objective of this policy is to require sufficient audit coverage, internal controls, and the use of generally accepted auditing principles to obtain an unqualified opinion on our financial statements.
The specific goals are:
- To require sufficient scope and timing of audits to control and possibly reduce the costs associated with external audit testing coverage
- To require the external auditor to submit an engagement letter with procedures sufficient to render an opinion on annual financial statements
- To ensure that corrective actions recommended by the internal and external auditors are implemented by bank management
The Bank recognizes that it is the responsibility of the entire board to protect all assets of the Bank. The Audit Committee is responsible for hiring qualified internal and external audit resources to provide sufficient audit coverage in all major risk areas of the Bank, to enforce adequate internal controls, to judge compliance with policies and procedures, and to enforce compliance
The Board of Directors and management of the Bank take responsibility for the financial statements of the Bank. It is the external auditors' responsibility to render an opinion on the financial statements based on their audit. The external auditors will be engaged by the Audit Committee of the Board of Directors. An engagement letter will be accepted and must be sufficient in scope to render an opinion on the financial statements of the Bank. Under the FDIC’s 12 CFR 363 guidelines section “Role of the Independent Public Accountant”, certain requirements for peer review are discussed. The Bank will choose an external auditor who participates in a peer review consistent with American Institute of Certified Public Accountants (AICPA) standards. The results of the peer review are to be filed with the FDIC and made available for public inspection. Prior to engaging an external auditor, the Bank will verify that the external audit firm has met the general qualifications, the terms of independence, and a review by a peer committee, per AICPA standards. Within the specified period of time from the engagement, dismissal, or resignation of its external auditor, the Bank will notify its primary regulator in writing of the event, including the reasons the change of external auditors was made. The Bank expects the external auditors to perform the audit in accordance with generally accepted auditing standards, which require that the external auditors plan and perform the audit in a manner that reasonably ensures that the financial statements are free of material misstatements.
Responsibilities of External Auditors
An outside, independent audit will be performed on an annual basis. After the audit is performed, the Bank’s directors expect the external auditors to issue a report containing their opinion of whether the financial statements fairly present in all material respects the financial position of the company. All findings of the outside independent audit will be reported directly by the external auditors to the Board of Directors Audit Committee, as appropriate.