Risk Management Manual of Examination Policies - FDIC

REPORT OF EXAMINATION INSTRUCTIONS Section 16.1
INTERNATIONAL WORKPAPER
AUDIT AND INTERNAL CONTROLS – AUDIT
This workpaper and the following one are designed to focus attention on the safeguards implemented by the
institution through the audit function and internal controls. The questionnaire is designed for use in an institution
with a relatively sophisticated trading operation. Therefore, the examiner must weigh carefully the recommendation
of certain control or audit features which are cost ineffective. Nevertheless, the institution should implement
protective devices such as separation of duties, test checking of transactions, and firmly established operating
procedures to prevent irregularities or departure from accepted norms. In essence, the traditional rules of practice
used in preventing undue exposure in domestic departments apply equally to the foreign exchange function.
Concerns with the institution's international audit and internal control procedures may be brought forward to the
ECC or RMA page, depending upon their significance.
Report of Examination Instructions (12-04) 16.1-88 DSC Risk Management Manual of Examination Policies
Federal Deposit Insurance Corporation