Let me preface this question by saying that I am not an auditor. My responsibilities are in security, fraud, and BSA compliance.

We are a $2 billion bank with close to 40 branches across 2 states. Currently, the bank conducts random branch audits at each branch at least every year. This audit includes counting teller, vault, and ATM cash along with completing an audit questionnaire with the branch manager.

These audits are conducted by our four regional branch administrators, they audit the branches in their region. My two assistants assist during the audit in the cash counting process but that is their only involvement.

I am curious as to what other banks do as far as branch audits. We have considered outsourcing the process to regional third party auditing firms to gain some independence to the audit.

Another thought was to have the regional administrators utilize staff from their region to assist in the annual audits.

In addition to the random branch audits, each branch manager does a surprise cash audit of teller and vault cash on a quarterly basis.

Any information as to how other banks are addressing this process would be appreciated.

I admit that my main motivation is to recover the hours that my two assistants spend on the road counting cash. Eight of our branches are a 10 hour round trip drive from our main office and several more are 6 hour round trips.

"These audits are conducted by our four regional branch administrators," are they independent from the branch process or does the branch report to them?

We do an independent review annually (when we had multiple locations)

At a large bank we did annual audits but I am told that now it is "risk based" at the large with 12 18 and 24 month reviews.

"In addition to the random branch audits, each branch manager does a surprise cash audit of teller and vault cash on a quarterly basis."

Part of best practices but can not be considered as part of an audit (management could be the suspect)



"Another thought was to have the regional administrators utilize staff from their region to assist in the annual audits."


At the large this was done when a problem was identified staff was sent to other branches for the count (it was a logistical nightmare with short staffing and vacations)

"I admit that my main motivation is to recover the hours that my two assistants spend on the road counting cash. Eight of our branches are a 10 hour round trip drive from our main office and several more are 6 hour round trips. "

Can you incorporate into an annual security review?

"We have considered outsourcing the process to regional third party auditing firms to gain some independence to the audit."

once priced out you may get sticker shock


Best of luck

We use a risk based approach. Locations in 2 states with about 40 branches total. Perform branch operation audits every 3 years, take a sample of branches.

I work for a $22 billion bank, and we audit our branches every year. We select a sample of branches throughout our footprint and send a team out on the road for about two weeks reviewing them. This year we are looking at 40 of our approx 400 branches. I was not involved in the planning process so I am not quite sure what the thoughts were with regard to the sampling methodology.

On top of what audit does, there are also branch operations employees that are solely responsible for reviewing branches. I am not quite sure how they make their selections, but I think each branch is on a 3 year rolling cycle, where every branch is reviewed at least once every 3 years but some more often based on risk and previous findings.