Trust Department Audit Objectives

D

The primary objective of a trust department audit is to ensure that the trust department is operating efficiently and effectively and in compliance with applicable laws and regulations. To achieve this goal, the audit process typically focuses on three main areas:

1. Detecting and preventing irregularities: One of the key objectives of a trust department audit is to identify any errors or irregularities that may have occurred in the operation of the department. This includes fraud, embezzlement, errors, and other types of irregularities that could impact the department's performance and reputation.

2. Assessing adequacy of controls and procedures: The audit process also evaluates the adequacy of the trust department's accounting, operating, and administrative controls and procedures. This includes assessing the quality of the department's internal controls, policies, and procedures to ensure that they are effective in mitigating risks.

3. Evaluating the quality of account administration: The audit process also includes evaluating the quality of account administration. This includes reviewing account documentation, verifying the accuracy of account balances, and ensuring that account management is in compliance with applicable laws and regulations.

In summary, the objective/s of a trust department audit is to detect and prevent irregularities such as errors and fraud, assess adequacy of accounting, operating, and administrative controls and procedures, and determine the quantity of account administration. Therefore, option D "all of the above" is the correct answer.