Final answer:
Audit findings for trust activities should be reported to the bank's audit committee, not just the trust committee. This ensures that the bank's overall financial health is considered. The statement from the reference, linking Trustee systems to a royal governor in Savannah, is unrelated and false.
Step-by-step explanation:
The statement that trust activities are highly specialized and complex is correct; however, it is false that audit findings should only be reported to the trust committee instead of the bank's audit committee. Both trust activities and regular banking operations are part of the larger financial framework of a bank.
Therefore, it's essential that the bank's audit committee, which oversees the entire audit process of the bank's operations, receives these reports. This ensures that the committee is fully informed of all aspects of the bank's financial health, including those related to trusts. Moreover, the bank audit committee typically has the authority and oversight to review all operational areas of the bank, not just non-trust-related aspects.
To address the reference provided, the statement, "The Trustee system was advised by a royal governor who lived in Savannah," is false. This confuses the topic of trust activities within financial institutions with historical governance systems, which are two distinct subjects.