The board of directors shall submit to the commissioner a report of the examining committee on forms provided by the commissioner. The report must reflect the results of a careful and thorough examination of the assets of the bank, including loans and discounts of every nature and the securities and collaterals belonging to the bank. The valuation of the assets of the bank must be compared with the records of the bank. The report must be made a part of the minutes of a regular meeting of the board of directors. The commissioner may refuse to accept the report if found to be not in accordance with acceptable accounting principles. Any of the following methods may be used to conduct the examination required by this section: 1. Examination by the board of directors or its examining committee. When this method is employed, the examination must be conducted and the report submitted in July of each year. 2. Examination on an annual basis by an independent certified public accountant or firms composed of such accountants, or auditors of the bank's holding company, if any. 3. Examination by an autonomous internal audit control system. The individual directing the internal audit control system shall submit to the board of directors each quarter an interim report as to the degree of compliance with the internal audit control system and shall express an opinion as to the adequacy of the internal controls. A complete report must be submitted annually to the board of directors.
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