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April 24
BSA/AML Compliance: Writing the SAR Narrative
Ken Golliher

April 29
HSA Basics
Whitney Johnson

April 29
Required Training for Loan Originators
Mary Beth Guard and Jack Holzknecht

May 13
Overdraft Practices in Today's Regulatory Environment
John Burnett

May 14
Reg E Claims - Allocating Liability Correctly
Andy Zavoina

May 15
Managing Electronic Information - From A to Zettabyte
Fred Menge



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#921064 - 03/12/08 01:48 PM Suspense Account Audit
Happy Online
100 Club

Registered: 01/16/02
Posts: 249
We are planning to add another audit to our schedule this year. A suspense account audit. Does anyone do this audit? Is it a worthwhile audit? Is it necessary? What scope do most of you use? I just got done with the BSA audit so this one should be easy, right?

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Audit
#921236 - 03/12/08 03:00 PM Re: Suspense Account Audit [Re: Happy]
Countess Kiwi Online
Diamond Poster

Registered: 06/27/02
Posts: 1813
Loc: Minnesota
ha ha.

Yes you should do one or incorporate it into other audits. What is actually sitting in those suspense accounts? I have seen some nasty stuff that should have been cleared out right away and it has sat in there for a while. Make sure there are controls to clean out those transactions and that fraud is not occuring.

Good luck
_________________________
Do what you can, with what you have, where you are.
~Theodore Roosevelt~

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#921262 - 03/12/08 03:08 PM Re: Suspense Account Audit [Re: Countess Kiwi]
RЯ AA_G Offline
10K Club

Registered: 07/21/04
Posts: 18919
We include it within the scope of our accounting audit.

I would look at items currently sitting in suspense, how long they have been sitting there for (should they have been cleared or written off by now), and who clears the items. I would also look at a sample items which have been cleared out of suspense to see by whom and if they were cleared appropriately.
_________________________
Tonight I'm going to recycle my beer bottles instead of throwing them out the car window.

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#921267 - 03/12/08 03:10 PM Re: Suspense Account Audit [Re: RЯ AA_G]
Happy Online
100 Club

Registered: 01/16/02
Posts: 249
What scope do you use? A month?

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#921336 - 03/12/08 03:45 PM Re: Suspense Account Audit [Re: Happy]
RЯ AA_G Offline
10K Club

Registered: 07/21/04
Posts: 18919
As in how often is the suspense account area audited or as in when doing the audit how much activity am I looking at?
_________________________
Tonight I'm going to recycle my beer bottles instead of throwing them out the car window.

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#921342 - 03/12/08 03:46 PM Re: Suspense Account Audit [Re: Happy]
RЯ AA_G Offline
10K Club

Registered: 07/21/04
Posts: 18919
As in how often is the suspense account area audited or as in when doing the audit how much activity am I looking at?
_________________________
Tonight I'm going to recycle my beer bottles instead of throwing them out the car window.

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#921386 - 03/12/08 04:05 PM Re: Suspense Account Audit [Re: RЯ AA_G]
Happy Online
100 Club

Registered: 01/16/02
Posts: 249
How much activity are you looking at?

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#921395 - 03/12/08 04:10 PM Re: Suspense Account Audit [Re: Happy]
RЯ AA_G Offline
10K Club

Registered: 07/21/04
Posts: 18919
Anything stale dated gets looked at - usually anything sitting in suspense for more than X amount of days - depending on what goes in and out it could be 30, 45, 60, etc. Depends on what your suspense accoutns are used for.

Then usually a year worth of activity - obviously not every item - but a random sample of a couple items from each month.
_________________________
Tonight I'm going to recycle my beer bottles instead of throwing them out the car window.

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#921411 - 03/12/08 04:22 PM Re: Suspense Account Audit [Re: RЯ AA_G]
Happy Online
100 Club

Registered: 01/16/02
Posts: 249
Thanks for the help. I will see what I find.

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#921483 - 03/12/08 04:58 PM Re: Suspense Account Audit [Re: Happy]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 48564
Loc: Galveston, TX
When you do the longer look, make sure you are looking for items that are rolled to new entries within your clearing timeframes. I have seen more than one "suspense account" kite in my lifetime.
_________________________
The opinions expressed are my own, take them or leave them.

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#921997 - 03/13/08 12:23 PM Re: Suspense Account Audit [Re: rlcarey]
Reed Offline
Diamond Poster

Registered: 09/01/05
Posts: 1238
Loc: West Coast
Would you elaborate on the suspence account kite? I was told once that I should be on the lookout for that but I'm not really sure how it would work and what I should be looking for.

Thanks

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#923691 - 03/15/08 09:26 AM Re: Suspense Account Audit [Re: Reed]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 48564
Loc: Galveston, TX
It could involve a couple of different schemes. One is to clear an entry in an account with other entires into the same account. This way the latest entry into the account is within the required clearing time. Another is when several different suspense or clearing accounts are involved and the money just goes from one to the another within the clearing deadlines.
_________________________
The opinions expressed are my own, take them or leave them.

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#923799 - 03/17/08 09:06 AM Re: Suspense Account Audit [Re: rlcarey]
Reed Offline
Diamond Poster

Registered: 09/01/05
Posts: 1238
Loc: West Coast
Interesting, thanks.

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#927251 - 03/20/08 03:19 PM Re: Suspense Account Audit [Re: Reed]
GregS Offline
100 Club

Registered: 01/03/05
Posts: 135
Loc: Sunny Florida
The tellers who held each others checks and counted them as cash moved up to accounting and figured it out. Suspense kites occasionally grow, too.
_________________________
We shall endeavor to persevere.

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#959890 - 05/15/08 06:02 PM Re: Suspense Account Audit [Re: rlcarey]
Compliance4ever Offline
Junior Member

Registered: 06/21/02
Posts: 39
Loc: Washington State
I have each branch do a monthly "suspense account" audit report which is turned in to me with each item detailed (date item went in, what the item is, how much, when the anticipated date out will be, etc). The accounts on the report include all suspense resource and suspense liability accounts at the branch level. Any item over 45 days must be written off to losses. The report must include a detailed general ledger printout for each account so that we can verify there aren't any "roll over" items. Also, this report must be done as of a different day each month, on a surprise basis, by someone other in the branch than the person or persons that make up the tickets to those particular accounts. This way, the branches do their own audit and I review and monitor.

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