SECTION 85:10-7-2. Scope of examination

(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.

[Source: Amended at 15 Ok Reg 2952, eff 7-15-98; Amended at 25 Ok Reg 1064, eff 5-25-08]