It is my understanding that once we sign the money over to the firm they are responsible for this money, if it is missing or stolen or whatever, they are responsible for proving that it is either in the machine or has been issued by the machine, otherwise they have to provide the cash to the bank. Am I missing something? I am so very new to this industry that I could be missing something.
This is the scenario we deal with: the 3rd party visits the atm, pulls a current balance from the machine, then contacts the bank to let them know the balance in the machine, the bank determines how much money will be put into the machine in order to keep the atm below it's cash limit. When the 3rd party arrives at the bank, employees of the bank and an employee of the 3rd party jointly verify the money, then the bank releases the money to the third party and the third party signs a receipt accepting the money. The third party continues to the atm and replenishes the atm, returning the necessary paperwork to the bank so that the appropriate balancing procedures can be taken for the atm.
This 3rd party servicer services all of our off site atms, they chose the order and the time they are going to service each atm, but generally do service them on the same day of the week. I am just trying to figure out my responsibility as an internal auditor for this scenario.
I appreciate any and all input to this situation.