Hello everyone, first time poster here I hope you can answer my question. I will be switching from Cashier function to Internal Auditor soon at a very small (75M) bank. I think they plan on still having me perform functions such as signing Cashiers Checks, Open/Close bank, Officer on Saturdays, and also backing up on some Cashier duties (Call Report, Bond Portfolio, Payroll) Is this OK? Or should I be completely independent from all bank functions? Thanks so much for your input.

There's a difference between in theory and in reality in smaller institutions. In theory you should be COMPLETELY independent of all operation functions at the bank, but in practice this may not be, well, practical for your size bank. That being said, I would stay away from operations as much as possible. (remember anything you audit shouldn't be your own work!) However, performing opening/closing duties I dont see as much a problem.

In a perfect world you are independent and do not have any other responsibilites. It will be difficult to audit the areas you have mentioned that you will still be performing and your access level to the bank systems is more than is needed for auditing. In a small bank, it may be more difficult to do this. I would question the need for you to complete transactions and sign bank checks, but will your external auditors be reviewing the other areas you mentioned or will they be outsourced in some fashion?

Has your institution been told they need an internal auditor? If so, what functions do they want audited?

Yes, examiners have been telling the bank for a couple years to assign an internal auditor. As I haven't really started, and have had no training yet (will be attending ICBA Internal Audit class in May) I'm not sure of the areas, or if it is all the usual areas. I think IT will not be assigned to me.

I am an auditor at a small bank. I open/close and am officer in charge on Saturdays. I do not sign official checks. I run proof sometimes. I do payroll in addition to other duties. The tickets I write up have to be reviewed and initialed by another officer. I simply don't audit the areas in which I am part of operations. We have our outside audit firm review and report on these areas. You can also get someone from another department do the audits in the areas in which you do operations.

Work closely with your external audit firm, and get their recommendatons on this. Your EIC can be of assistance also if your bank has a good relations ship with him/her. They can tell you how other small banks handle this problem.

Thanks, that helps. You say you are the officer on Saturdays, but you don't sign Cashiers Checks. Is there someone else with higher check signing authority there on Saturday too? That was my concern, as the officers have the authority to sign the larger checks, and if I'm there but can't sign a check we can't service our customers! I appreciate everyone's input and advice.

I am the only officer at the Main Bank on the Saturdays that I work. Tellers can sign Cashier's Checks up to a $$ level then an officer must sign. I have signed mabye 3 Cashier's Checks in the last 5 years. I only sign Cashier's Checks involved in customer transactions that go through a teller. I do not sign Cashier's Checks that are used for bank internal use. As long as you aren't for example the only offcier with check signing authority during the week and you are signing all of them.

i want 2 komw importance of intnal contrpl system and how it helps the orgnization.