Title of Report [omit “Audit of”]

July 2008 Report No. AUD-08-011 DSC’s Examination Assessment of Interest Rate Risk AUDIT REPORT Report No. AUD-08-011 July 2008 DSC’s Examination Assessment of Interest Rate Risk Federal Deposit Insurance Corporation Audit Results Why We Did The Audit For the 38 sampled risk management examinations we reviewed, FDIC examiners generally complied with applicable policies and procedures for assessing and addressing an institution’s The audit objectives were to internal control, review, and audit coverage of the interest rate risk management process. (1) determine whether the FDIC’s Generally, as depicted in the figure below, we found: examinations comply with applicable policies and procedures for assessing • Pre-Examination Planning memoranda listed the red flags identified by the FDIC’s Interest and addressing an institution’s Rate Risk Standard Analysis software application; and internal control, review, and audit • Reports of Examination and supporting working papers showed that examiners either coverage of the interest rate risk obtained for consideration a copy of the institution’s independent review report or management process; and identified a contravention of the IRR SOP. (2) evaluate the corrective actions pursued when significant weaknesses Regarding the pursuit of corrective actions, we found ...