Full text of Mimeograph Letters and Statements of the Board : Letter From Secretary Morrill re Procedure Followed and Reports Submitted by Auditing Department, Number X-7390, Volume 38, Page 110

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110
FEDERAL RESERVE BOARD
WASHINGTON
ADDRESS OFFICIAL CORRESPONDENCE T O
T H E FEDERAL RESERVE BOARD

X-7390
March 30, 1933.

SUBJECT:

Dear

Procedure Followed and Reports Submitted
by Auditing Department.

Sir:

At the present time c e r t a i n Federal r e s e r v e hanks send the
Board copies of r e p o r t s of general a u d i t s of the banks which are
made from time to time "by t h e i r a u d i t i n g s t a f f s .

Prior to March

26, 1925, when c i r c u l a r X-4306 was sent to the Federal r e s e r v e
a g e n t s , d i s c o n t i n u i n g report forms X-794 and X-794A, i t appears to
have been the custom of

the Federal reserve agents t o submit with

t h e s e report forms copies of audit reports rendered by the banks'
a u d i t i n g departments.

While i t i s not the d e s i r e of the Board

that the d i s c o n t i n u e d report forms be r e s t o r e d , or that copies of
a l l reports of the a u d i t i n g departments be furnished the Board, i t
w i l l be appreciated i f you w i l l transmit t o the Board copies of a l l
reports of general a u d i t s that are made "by the a u d i t i n g departments,
i n c l u d i n g the t e x t u a l part t h e r e o f .

I f , i n p r e s e n t i n g such reports

to the Board of D i r e c t o r s , you make any w r i t t e n comment, a copy of
such comment should be included with the report submitted t o the
Board.
In t h i s connection, the Board f i l l be glad to r e c e i v e a




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statement s e t t i n g f o r t h i n some d e t a i l the manner i n which your a u d i t i n g department i s conducted, the nature of i t s review of the work of
each department of the "bank, i t s program as to general a u d i t s , the
i n t e n s i v e n e s s of i t s e f f o r t s t o a s c e r t a i n i r r e g u l a r i t i e s and develop
improvements of a c o n s t r u c t i v e nature, the extent to ™hich i t goes i n
submitting recommendations, and what arrangements have been made f o r
t h e i r systematic c o n s i d e r a t i o n by the o f f i c e r s and d i r e c t o r s of the
bank.
Very t r u l y yours,

Chester M o r r i l l ,
Secretary.

TO CHAIRMEN OF ALL F . E. BASES.