Question

In reviewing the audit program, the examiner should find all of the following minimum functions being performed with exception of:

a. Spot-check and tracing of transactions for accuracy and validity.
b. Balace and proof of subsidiary lefgers to general controls.
c. Verification commission and fee calculations.
d. Review employee performance evaluations.

Answer 1

In an audit program, one would expect to find minimum functions like spot-checking transactions, balancing ledgers, and verifying commissions, but not the review of employee performance evaluations, as this falls under human resource management.

Step-by-step explanation:

When reviewing the audit program, an examiner should expect to find certain minimum functions being performed. These functions typically include:

• Spot-checking and tracing of transactions for accuracy and validity.
• Balance and proof of subsidiary ledgers to general controls.
• Verification of commission and fee calculations.

However, the function that is not typically expected as a minimum requirement in an audit program is review employee performance evaluations. Employee performance evaluations are generally considered to be part of human resources management rather than a core function of financial audits. Audit programs are more focused on the verification of financial records and ensuring the accuracy of financial reports.

Answer 2

The auditor in bank supervision is responsible for functions such as spot-checks, ledger balancing, and commission verification, but not for reviewing employee performance evaluations, which is a human resources function.

Step-by-step explanation:

In the context of an audit program, the examiner should ensure that functions such as spot-check and tracing of transactions for accuracy and validity, balance and proof of subsidiary ledgers to general controls, and verification of commission and fee calculations are conducted. However, the review of employee performance evaluations does not fall under the minimum functions for audit program assessments in the framework of bank supervision. This task is typically part of human resources management rather than financial audits.

The role of the examiner is to guarantee accurate accounting and regulatory compliance of financial institutions. The Office of the Comptroller of the Currency and similar agencies ensure banks maintain positive net worth and appropriate risk levels, with bank examiners performing on-site reviews of national banks and monitoring foreign banks with U.S. branches, as well as savings and loan institutions.