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#985180 - 06/30/08 07:05 PM Internal Teller Cash Drawer Audit
fdbrad Offline
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When auditing a teller cash drawer, I have always thought the auditor should count the teller cash. I have now been told that the teller should count their own cash with the auditor observing the count and documenting the totals. I would like to know the procedures of other auditors.

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#985191 - 06/30/08 07:22 PM Re: Internal Teller Cash Drawer Audit fdbrad
Milby Offline
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Auditors audit. Teller observes. Kind of pointless otherwise.

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#985325 - 06/30/08 09:24 PM Re: Internal Teller Cash Drawer Audit Milby
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Ditto.
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#985800 - 07/01/08 04:50 PM Re: Internal Teller Cash Drawer Audit #Just Jay
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I count the cash, the teller observes.

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#985898 - 07/01/08 06:00 PM Re: Internal Teller Cash Drawer Audit Ms Auditor
TennesseeFlash Offline
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Ditto

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#986012 - 07/01/08 06:56 PM Re: Internal Teller Cash Drawer Audit TennesseeFlash
Dazed and Confused Offline
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I've seen banks that have the tellers count-down the drawer while the auditor observes. The tellers slow-down their pace a bit so the auditor can keep up with the count for the unbundled bills. As for the strapped bills, the auditors selected a sample and verified the straps (the percentage verified increased with the denomination). For some banks, the auditor observed the teller run the straps through a cash-counting machine.

It makes sense to me, as the teller is more efficient at handling money than most auditors, and the auditor observed the entire process and controlled the verification process.

If the auditor is not satisfied with something, he can always stop the teller and verify himself.


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#986090 - 07/01/08 08:02 PM Re: Internal Teller Cash Drawer Audit Dazed and Confused
Cornfed Turtle Offline
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My only issue with that would be that the workpapers should document the observation of cash being counted by a professional. The scope and objectives should be clear that the money was not counted; the process of counting was documented.

Our auditors document that the tellers are counting each others' drawers, but it's not the same as the auditors doing it themselves.

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#986119 - 07/01/08 08:16 PM Re: Internal Teller Cash Drawer Audit Cornfed Turtle
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Auditors count. Tellers observe. Why bother to do it otherwise?
They could have any number of "things" hidden in their drawer that an auditor wouldn't see if they didn't actually handle the drawer.

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#986313 - 07/01/08 10:25 PM Re: Internal Teller Cash Drawer Audit Ready to Retire
Curious Banker Offline
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For example, sometimes finding a "slush fund" in with the paperclips. This is where an extra quarter, dime, nickel, and a few pennies are kept to be tossed into (or held after removal) the cash drawer as needed to cover offages. I always count the cash drawer. If the drawer doesn't balance and I continue to be off after a second count, I have the teller or the Teller Supervisor recount the drawer to verify my offage.

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#986393 - 07/02/08 01:36 AM Re: Internal Teller Cash Drawer Audit Curious Banker
rlcarey Online
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I think I would revisit my audit risk assessment if the internal audit department is wasting time counting teller drawers - except in rare occasions - like the suspected breakdown in internal controls in a specific branch.
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#986411 - 07/02/08 02:38 AM Re: Internal Teller Cash Drawer Audit rlcarey
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Finally Spring and Curious Banker -- I agree with you. The auditor should inspect the teller area for cash items not under G/L control, cash kitties, etc. But the auditor could still observe the teller count-down the drawer and the same objective would still be met --- verification that the cash in the drawer is materially correct.

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#988211 - 07/05/08 05:04 AM Re: Internal Teller Cash Drawer Audit Dazed and Confused
Countess Kiwi Offline
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I started counting drawers quarterly as a new auditor, ended counting them during the branch audits on a surprise visit. I let them count each other the rest of the year/time frame. I have found some odd things in drawers, from slush funds to personal funds that they didn't want their husband to know they had (yes, it was kept in their teller drawer) to bundles of new money with a ticker tape that was off quite a bit because they may have forgotten to reduce the total they had. In order to balance the general ledger I had to verify all cash within the branch to feel comfortable saying the branch did in fact balance. Although it may not be high on the risk profile, I did find ways to improve processes by doing the manual count...cost effective? - maybe in the long run. A count of a branch (7-10 drawers plus vault), though, usually only took an hour or two to finish.
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