Bank branch audit checklist

Written by jason gillikin
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Bank branch audit checklist
Bank branches are subject to auditing along several major categories. (bank image by Pefkos from

Banking executives routinely authorise audits of bank branches to ensure that the branch office is performing according to expectations and to verify that local managers are not engaging in fraud. Although each bank audits its branches at different times and according to different criteria, some basic practices are standard audit procedure.

Cash Control

External auditors will insist on counting down the main vault, the ATM, any teller cash dispenser machines and each teller's cash drawer to ensure that they reconcile to the official totals recorded at the close of each business day. In addition, auditors will review cash receipts, teller over/short overrides and "cage transfers,"

the sale of cash from one teller to another or from a teller to the vault, to ensure that each has been properly accounted for and signed by at least two bank employees.

Negotiable Instrument Control

One or more branch employees typically maintains sole custody of the branch's supply of blank money orders and cashier's checks. Auditors will make sure that every blank copy is accounted for, and that each batch of blank instruments is secured and signed for by at least two branch employees.

Safety Review

External auditors will typically inspect the branch's security procedures. They will ensure that cameras and alarms work and are used when necessary, that employees are given access to keys, combinations and passwords according to bank policy, and that secure areas like the teller area are kept protected from walk-ins by customers.

Regulatory Compliance

Banks are governed under myriad regulations. Auditors will ensure that branch officers remain compliant. Common objects of scrutiny include new account paperwork, particularly with regard to the care taken in identifying the customer. Auditors may also review the branch's statistics over the recent past to see whether there are disparities in race or gender among credit applicants or whether the branch is too lenient in waiving bank policy regarding fees or account requirements.

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