Final answer:
An examiner reviewing an institution's policies and procedures considers control activities, control environment, and accounting processes to evaluate risk management and legal compliance. Auditing processes are usually handled by auditors rather than being part of internal policies.
Step-by-step explanation:
When an examiner is reviewing an institution's policies and procedures, there are several key points they must consider to ensure that the institution is managing risks effectively and is in compliance with relevant laws and regulations. Some of these points include:
- Control Activities: These are the policies and procedures that ensure management directives are carried out. They help to enforce necessary checks and balances within an institution.
- Control Environment: This is the set of standards, structures, and processes that provide the basis for carrying out internal control across the organization. It includes the governance and ethical values of the institution.
- Accounting Processes: Understanding the accounting practices and procedures of an institution is fundamental to assess financial reporting and compliance with fiscal procedures.
An examiner might also consider other factors such as risk assessment and information systems; however, auditing processes are generally considered the responsibility of internal or external auditors rather than policies and procedures of the institution itself. Therefore, responses a, b, and c are typically the ones an examiner would focus on regarding an institution's policies and procedures.