Situation

The audit and compliance teams were stretched thin and were spending too much time training outside help to pick up the slack. In addition, this was causing inaccuracies in final reporting and a lot of rework to correct mistakes.

Team Engagement Strategy

A frontline team of employees was engaged and equipped with Rapid Action, a team-based toolkit for solving process improvement challenges, to improve the loan audit process and reduce auditing errors to zero.

Rapid Action Project Charter

How can we design a more efficient and systematic way to sample and audit loans in order to increase audit volume, lower external auditor expenses and lower sampling error rates to improve quality?

Sample Solutions Implemented:

1. Determined the root cause of sampling errors, which was discovered to be the inaccurate entry of ineligible loans into the sampling queue, which slowed the process and bogged things down.
2. Developed KPIs for Quality Control to create baselines for audit volume and timely tracking reports for monthly selections.
3. Automated parts of the QC process via new technologies.
4. Developed a single sampling query to replace 15 reports with 1.