Financial Statement Audit

Shatswell MacLeod provides a comprehensive audit of the financial statements of our client banks with minimal disruption to the institution's normal operation. We are results oriented. We keep the institution abreast of important regulatory and industry changes. We focus on all important matters in discussion with management and the bank's Audit Committee until the bank, and we, are satisfied with the results

Our audit is conducted in accordance with GAAS and includes gaining an understanding of the bank's internal accounting controls as per SAS No. 55, as amended and SAS No. 94.

Our audit process includes:

• A review of the loan portfolio with regard to the adequacy of the allowance for loan losses
• A review of credit files for completeness and thoroughness on a test basis
• Reconcilement of all loan and deposit applications to the general ledger
• Validation of interest calculations and accruals for deposit and loan applications on a test basis
• Confirmation of account data with customers of the institution using standard auditing practices for sampling
• A review of the institution's investment portfolio including verification of selected information
• Issuance of a management letter that will include any reportable conditions in the institution's internal controls and other comments

Taxation

We prepare federal and state tax returns for our client banks. We also provide comprehensive and detailed tax planning services throughout the year. Our taxation experts keep institutions informed about all changes in the Internal Revenue Code and make recommendations as to how the bank can best reduce its tax liability.