Which of the following activities at a commercial bank is not an operations activity?
c) check clearing
Auditing is not considered as an operations activity at commercial bank. Besides Auditing , all of the options given( Security, check clearing and maintenance) are the operations activity at commercial bank. Auditing is not considered as an operations activity at commercial banks because it is not used to make decisions about how the bank will operate. However, auditing is important for ensuring the accuracy of financial statements and compliance with laws and regulations. Commercial banks rely on their internal audit departments to provide assurance that the bank is operating effectively and efficiently.
Auditing is critical in commercial banks to ensure the accuracy and completeness of financial statements. Auditors also help banks identify and prevent fraud. Commercial banks are subject to audits by both internal and external auditors. Internal auditors are employees of the bank and their primary purpose is to assess risks and compliance with laws and regulations. They also provide recommendations to improve internal controls. External auditors are independent from the bank and are typically hired by the board of directors. Their job is to express an opinion on the financial statements and assess the risk of material misstatement.
Banks rely on audits to provide assurance that their financial statements are accurate and complete. Audits also help banks identify potential risks and prevent fraud. Commercial banks are subject to audits by both internal and external auditors, which helps ensure the accuracy and completeness of their financial statements.