We had this type of finding during our last exam. The auditors looked at the copies of the holds-they saw the errors, and never even got to the point of verifying what the system did- as they stated it didn't matter, the notice handed to the customer was wrong. We launched a bank wide Reg CC trainng - which included Operations, branches and the system experts.
Things have become much better as a result.
Some days, it is all a mystery to me.