Oklahoma Administrative Code › Title 85 - State Banking Department › Chapter 10 - Supervision, Regulation, and Administration of Banks, Trust Companies, and the Oklahoma Banking Code › Subchapter 7 - Director's Examinations › Section 85:10-7-2 - Scope of examination

Current through Vol. 41, No. 20, July 1, 2024
(a)
Standards of acceptability.
An examination of a state bank or
				trust company, to be acceptable, must be made in accordance with the minimum
				examination procedures. The Commissioner has the responsibility to determine
				whether an examination is acceptable. He also has the authority to reject any
				examination which does not conform in all respects with prescribed
				requirements. If, at any time, it is found that those performing the audit or
				examination as set out in
				85:10-7-1(a) and
				(b) have not followed recognized rules,
				ethics, or conduct, or have not met the minimum standards of the Department, or
				made any misstatement of facts or circumstances or any misrepresentation of any
				kind knowingly made, it will not only cause the examination to be rejected but
				will also form a basis for the temporary or permanent disqualification of the
				individual(s) from conducting similar examinations.
(b)
Reporting.
A report shall be
				prepared and submitted to the board of directors, describing the scope of
				examination and setting forth the finding and recommendations as a result of
				the examination. Any open or unreconciled item at the time the report is
				submitted shall be disclosed and commented upon in the report.
(c)
Report content.
The report
				shall include the date of examination; a statement indicating that at least the
				minimum requirements outlined in this Subchapter were met; a statement that the
				test of independence specified in
				85:10-7-1(b)
				has been met; a statement that the internal control program adopted by the bank
				or trust company is being complied with to the best of the individual's(s')
				knowledge; or set forth in the report any exceptions and any other comments or
				statements which the individual(s) may wish to make. The report shall also
				include the management letter summarizing the findings of the directors
				examination.
(d)
Report order
				and balance.
The reports should follow as closely as possible the order
				contained in this Subchapter and include the balance of the general ledger
				accounts as of the examination date under the specific account
				heading.
(e)
Definition.
Contained in this Subchapter, the words "tests" and
				"selected" are used without specific definition. For each situation in which
				such terminology is used, indicate in some appropriate manner the extent and/or
				basis of the tests.
(f)
Employees.
Include in the report the extent to, and the purpose
				for, which employees of the bank under examination were used.
(g)
Defalcations.
Any
				defalcations should be reported immediately to the Department.
(h)
Deadline to file.
The board
				of directors must file a copy of the report with the Department within one
				hundred twenty (120) days from the date of completion of the
				examination.
Amended at 15 Ok Reg
				  2952, eff 7-15-98; Amended at 25 Ok Reg 1064, eff
				  5-25-08