A branch audit is an examination of a branch office of a company to ensure that its financial statements are accurate and comply with applicable laws and regulations. The audit can be conducted by the companys auditor or by an external auditor. The ultimate objective of a branch audit is to manage reputational risk and empower the company to concentrate on actions that can be changed.

Branch audits can be conducted on a surprise basis, and auditors typically arrive before any branch staff to establish relationships with supervisors and conduct a risk assessment. The risk assessment evaluates the likelihood and impact of an event occurring and helps determine which offices should be audited and how often.

In addition to financial statements, branch audits can also review changes made to the branch and flag issues introduced by those changes, such as unexpected naming or other issues.

There are enterprise software solutions available to efficiently plan, schedule, conduct, resolve, and report on branch inspections in accordance with regulatory guidelines. These solutions can help streamline the audit process and improve audit cycle time.

Before conducting a bank branch audit, auditors should keep in mind the critical nature of the process in ensuring the accuracy and security of a banks financial statements.