The auditor and his assistants frequently make "spot" or "unannounced" examinations of the entire bank or of the various departments, and of the branches, if there are any. These examinations usually consist in the verification of the accuracy of assets and liabilities, in the count of all cash and securities, and in letter verification from customers in connection with those departments which deal directly with them. The auxiliary records of a department are always reconciled with the general ledger accounts controlling them and the detail shown on the auxiliary records is frequently scheduled by the auditor and checked out as the items mature or are liquidated. This procedure frequently involves a great deal of detail and requires a number of assistants.

Inspections Of Departments And Branches

Inspections are more directly the province of the comptroller, or of the president of the institution. They involve something more than examination into the accuracy of accounts and the character of the system of operation. They determine the correctness of methods, of loan policies, and of bank management in general.