Okla. Admin. Code § 85:10-5-2

Current through Vol. 42, No. 6, December 2, 2024

Section 85:10-5-2 - Internal control program

(a) The internal control program set forth in this subchapter must be administered by the control officer or auditor with a record maintained as to the date upon which each recommended procedure was performed and a notation as to any exceptions disclosed.

(b) The control officer or auditor must be accountable directly to the board of directors or committee thereof.

(c) The adoption of a sound internal control program is a primary responsibility of the bank's board of directors. The board cannot delegate this duty. The board shall appoint a control officer or auditor to administer such a program, but the ultimate accountability for the degree of effectiveness with which the program functions is the board's responsibility. Neither supervisory examination nor insurance, or a combination thereof, can take the place of an internal control program.

(d) In order to obtain the maximum protection economically feasible it is necessary that all concerned be continually aware of the fundamental principles with respect to sound internal checks and controls and internal auditing. An objective in any bank or trust company control program is to discourage fraud, not necessarily to discover its existence. A program of safeguards must be implemented to meet this primary objective.

(e) The internal control program should contain the institution's policy for annual examination by the board of directors and, further, should contain a provision for annual review as to adequacy and compliance.

(f) The failure of a bank or trust company to meet the requirements of this subchapter does not by itself establish or diminish any private right of action otherwise available under other state or federal law against a bank or trust company.

(g) Any bank that complies fully with Title 12 Part 363 of the Code of Federal Regulations will be deemed to have complied with the provisions of this subchapter.

Okla. Admin. Code § 85:10-5-2

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

Amended by Oklahoma Register, Volume 37, Issue 24, September 1, 2020, eff. 9/11/2020