Our cash audits of the vault, ATM, and individual tellers are done by the teller supervisor. An officer is present for the vault audit but not for the ATM or individual teller audits. The teller supervisor is audited by a seperate officer. Is this acceptable? We are a small bank without an internal auditor but we do have an external audit performed every 18 months on Cash and Cash Items.

Risk based, you should have an audit schedule/policies/procedures that your audit committee approves. It sounds like a lack of dual control, but I guess I am assuming the teller supervisor has conrol over ATM & individual teller drawers when necessary. If in doubt, discuss with your audit committee.

We are a very small bank as well, I am the internal auditor & compliance officer, Anytime I audit a cash area there is always someone else present. Vaults- officer, ATM- officer- teller drawers- that teller or their supervisor is present and watches the count. I think not having a second individual is just asking for problems, at least where cash is concerned.

And from my standpoint, I'm happy to have a second individual there- it protects anyone from pointing a finger at me if I find an issue/shortage.

So, if we had the teller supervisor and an officer present during the ATM and Teller audits we would cover the dual control aspect of the audit right?

I think it is a better practice than to leave one individual alone during a cash count of assets someone else is responsible for, yes.

It's important that the teller supervisor not be allowed to audit their own work... so if the teller supervisor routinely works out of the tellers drawers for breaks (hopefully not the case) and/or fills the ATM, I would think the Officer would need to complete the audit/cash count and the supervisor could witness it. It is awfully easy to mess up a cash audit, with fraudulent intent if the right circumstances are combined. It's scary!

I see. Thanks Mack!

You're very welcome, good luck!!

Mack, do you have any Audit Workpapers for this area that you would be willing to share with me? It would help me out a ton!

We allow our teller supervisor to perform the audit of the teller drawers. Another officer will peform the audit on the teller supervisor drawer. Two officers will peform the audit of the vault and ATM.

We do not allow the teller superviosr to be the "officer" for the the vault or ATM. She doesn't fill the ATMs but does the cash ready for them so that is why we don't allow them to be present.

I think that is what we are leaning towards ahk. Thanks!