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#1338324 - 02/05/10 03:03 PM Travelers Cheques Audit
Springtime Offline
Junior Member
Joined: Mar 2009
Posts: 46
MO
Other than verifying/confirming the actual travelers cheques to the inventory log and inventory statement, is there anything else that should be looked at during a travelers cheque audit? Should there be a concern if the seal on some of the packets have been broken? Should dual control be used when auditing? Thanks for your help.

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Audit
#1339010 - 02/05/10 08:52 PM Re: Travelers Cheques Audit Springtime
OkieDokie Offline
Junior Member
Joined: Jan 2007
Posts: 45
Oklahoma
Dual control should be used, and if packets' seals are broken, I normally verify all checks are present in the packet and then sign over a piece of tape to re-seal. We have some packets that have been consigned to our bank for over 10 years, through the counting/verifying process they tend to get somewhat brittle and seals break.

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#1339014 - 02/05/10 08:54 PM Re: Travelers Cheques Audit Springtime
biz Offline
Diamond Poster
Joined: Nov 2005
Posts: 1,032
Midwest
I would say yes-if the seal is broken are you now counting each packet . . .what a pain. TC are just like cash. If you would use dual control to count a teller drawer or the vault, then yep, same thing.

In my audit I ran into each branch had there own stash. And the accounting department had no idea of what each branch had. I had a problem with that. I also had a problem that the same person in each of these branches was the same person submitting the report, balancing them monthly and checking new orders in.

Yep, I'm picky about that dual control thing.

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#1339183 - 02/05/10 11:45 PM Re: Travelers Cheques Audit biz
Herkunft Offline
New Poster
Joined: Dec 2009
Posts: 11
Canada
I would also pay attention to the following:
1. TC's should be stored overnight in vault under double key, just like cash
2. reconcile TC balances to general ledger accounts (on-hand, purchased/sold)
3. issue dates of TC's are not extremely old. In one bank, branches had TC's on stock outstaning for many years. This means the funds remained tied up idle, which may be costly.
4. Tellers should count TC inventory and reconcile to GL on their own on a regular basis (internal control)
Last edited by Herkunft; 02/05/10 11:46 PM.
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#1339445 - 02/08/10 04:34 PM Re: Travelers Cheques Audit Herkunft
Herkunft Offline
New Poster
Joined: Dec 2009
Posts: 11
Canada
and one more:
5. check accuracy and timeliness of booking fees charged for TC sale/purchase transactions.
Last edited by Herkunft; 02/08/10 04:36 PM.
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#1339743 - 02/08/10 09:08 PM Re: Travelers Cheques Audit Herkunft
Ready to Retire Offline
Diamond Poster
Joined: Aug 2005
Posts: 2,313
Living in the land of Oz
Each of our branches has their own supply which they receive directly from the supplier. So I also reconcile the outstanding checks in the branch to the inventory sheet sent by the supplier-serial numbers, dollar amounts, total inventory etc.

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