I searched the forums on this topic and still have some questions......

How often do most banks audit their employee's accounts? Is there a legal requirement to do so or is it just a best practice? And who within the Bank is usually responsible for reviewing employee accounts? Thanks.

We do a sample of employees quarterly and we have about 160 employees. The audit department does the review and we are looking for unusual activity, following bank policies (code of ethics) and account setup for appropriate coding. I don't think it is a requirement. Although it won't catch all fraud, it may catch some.

If I remember correctly, there were a lot of variations in past discussions. It would depend on your bank size and what options you have available to you.

Internal audit did ours based on a random sample. I believe it was quarterly to coincide with savings statements production. I don't know what sample size they went after and if it was a few or a statistically sound sample. We had well over a thousand employees in the organization.

While we also sample employee deposit accounts, our focus is on ensuring all employee accounts - deposit and loans - are coded in our systems so that unusual employee activity can be monitored by a designated person. This would enclude OD and uncollected funds monitoring, and reviewing debit offsets to most employee credit transactions. The filters have been modified over time to not report common entries, but this process has shown to be much more effective than sampling in identifying persons of interest.

I reviewed a sample of all employee accounts, (checking savings, loans, etc) on a quarterly basis. We're about a $600 million bank with roughly 275 employees. Our external audits request a copy of our review during our annual audit. We have a CBS system so I am able to run a report with specific parameters using our Bancaudit software. It makes it much easier!