Thread Options
#1661703 - 02/07/12 08:34 PM CD Maturity audit?
KTW327 Offline
100 Club
KTW327
Joined: Mar 2011
Posts: 183
In the trees
Does anyone audit a list of CD info? I am being sent a report that has the certificate number, amount, rate, term, open date, and maturity date. I am supposed to reivew it, but I don't know what to look for. Does anyone review a report similar to this, and if so, what are you looking for?

Thanks!

Return to Top
Audit
#1663988 - 02/13/12 02:18 PM Re: CD Maturity audit? KTW327
wblewis935 Offline
Member
Joined: Feb 2011
Posts: 53
The only thing that I have ever used a report similar to that for is to create a maturity schedule. I don't know what you would be looking for just to "review" it, though.

Return to Top
#1664112 - 02/13/12 04:37 PM Re: CD Maturity audit? KTW327
BrendaC Offline
Power Poster
BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
The bookkeeping supervisor used to get a trial balance of time deposits, but I think it went automatically to the archive file.

You could also use the list to periodically est Reg DD notices, APYs, etc. I don't know why you would need one on a regular basis. I would pull as needed. Maybe it's one of those "we've also done it" issues.

One thing you want to do is track non-auto-renew CDs to see what happens after maturity. Hopefully, you have a separate report to identify these that have not been redeemed by account owners.
_________________________
Life without Jesus is like an unsharpened pencil - it has no point.

Return to Top
#1664126 - 02/13/12 04:41 PM Re: CD Maturity audit? BrendaC
A_G Offline
10K Club
Joined: Jul 2004
Posts: 18,958
One CD test I do is get all CDs with rates that fall under X% (that's seems to generate a larger population due to rates lately) and above X% and investigate any that fall outside those parameters.
_________________________
With the lights out, it's less dangerous.

Return to Top
#1669746 - 02/24/12 09:16 PM Re: CD Maturity audit? KTW327
KTW327 Offline
100 Club
KTW327
Joined: Mar 2011
Posts: 183
In the trees
What are you investigating if the rates do fall out of those parameters? Is this a sign of something bad?

I think this might be a function of "we have always done this" and unfortunately the previous auditor is not here to shed any light. I do review the rates to make sure they make sense for the time period (2007/2008 were much higher rates).

What should I be looking for on the CDs that did not have auto renewals? That they were taken care of?

And thank you all for answering my questions!

Return to Top
#1670782 - 02/28/12 08:13 PM Re: CD Maturity audit? KTW327
Hobbes Offline
100 Club
Hobbes
Joined: Sep 2007
Posts: 126
On a sled
Rates that fall out of the parameters could be something bad, or could just be an error. Was the rate entered incorrectly when it was created, or did someone go in and change the rate? Are there a lot of errors, or just a few? Random personnel responsible, or always the same one? These are just a few I could think of. The answers will let you know if you need to investigate more, and if you have a problem on your hands.

As for non-automatic renewels, I've never dealt with these. But I would suggest looking at the procedures to determine what is supposed to be done. Is an official check cut with the proceeds mailed to the depositor? Do the funds stay on deposit at 0% interest? What if the funds are never claimed? Are they escheated?

Good Luck!
_________________________
There's never enough time to do all the nothing you want.

Return to Top

Moderator:  Andy_Z