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FEDERAL RESERVE BOARD ~ WASHINGTON October S, 1924. St. 4264. address official correspondence to the federal reserve board SUBJECT: Auditing Departments of Federal Reserve Banks. Dear S i r : An examination of the outlines covering the work p e r formed by the Auditing Departments of the Federal reserve banks recently received by t h i s Committee, indicates t h a t a considerable v a r i a t i o n e x i s t s in the auditing procedure of the Federal Reserve banks. I t would seem, however, in view of the simi- l a r i t y of work performed by the reserve banks, that the essent i a l functions of an auditing department in one Federal r e serve bank should not be materially d i f f e r e n t from those in another, and f o r t h i s reason i t has been decided t o appoint a committee of bank o f f i c e r s t o make a complete study of t h i s subject and submit a report there cn. The committee named is as follows: Mr» I>, R. Rounds, Chairman, General Auditor, Federal Reserve Bank of New York Mt, F* H. Holman, Auditor, Federal Reserve Bank of San Francisco Mr. J . S. Walden, J r . , Controller, Federal Reserve Bank of Richmond, The work of auditing i s of very great importance to the reserve banks and should at a l l times be carried on with a view to providing adequate protection with a minimum of expense. - 2 - Bach reserve bank i s e n t i t l e d to, and should have, t h e oenef i t of the experience of every other r e s e r v e bank, and the committee believes t h a t t h i s r e s u l t can best be accomplished by having a committee of e x p e r t s , who are thoroughly f a m i l i a r with a l l operations of Reserve banking, formulate a standard of a u d i t i n g procedure which may be used by each bank in i t s a u d i t i n g work. I t i s believed that i f the above-named committee submits a complete plan f o r a u d i t i n g which can be accepted by a l l reserve banks as the standard f o r t h e i r a u d i t i n g procedure, the r e s u l t w i l l not only be a s u b s t a n t i a l saving of expense but an improvement in a u d i t i n g methods as w e l l . Very t r u l y yours, Greo. R* James, Chairman, Committee on S a l a r i e s , Expenditures and E f f i c i e n c y . LETTER TO CKAIRMM AT EACH FEDERAL RESERVE 3ANK COPY TO GOVERNOR
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