To help banks comply with new laws and regulations requiring institutions to prove what type of internal control systems are in place, Deloitte & Touche introduced a software service package, which contains modules to design and customize assessment practices.
A team of Deloitte & Touche personnel will use the proprietary software to lead bank managers through a series of questions to establish criteria for making sure attendant responsibilities are being met, documenting the control structure, assessing its effectiveness, and meeting all legal requirements.
Section 112 of the Federal Deposit Insurance Corporation Improvement Act, effective at the end of the year, stipulates that all banks with assets of $500 million or more must issue a report on internal controls within 90 days of the conclusion of the fiscal year.
Management must acknowledge responsibility for an institution's financial statements, as well as the controls over financial reporting.
It also must assess the effectiveness of both the internal control structure and procedures for financial reporting and compliance with applicable laws and regulations.
This package is the first in a series the firm will market to meet the demand for stronger internal control systems.
In addition to accounting, Deloitte & Touche provides consulting services in the auditing, tax, and management areas.