My external auditor is recommending that I review our employee's accounts. I have approximately 350 employees. Does anyone have any ideas how I can accomplish this?

I am currently faced with the same situation. I am trying to get employee statements cut on a certain date and they come to me to review before disbursing, to review for unusual or suspicious activity. Then you get into "what is considered to be unusual or suspicious".

Randomly select some employees and keep records of those reviewed and conclusions.

Could actually distribute to branches to hand out rather than mail to save on postage.

My initial process is to review a system generated report that list all accounts by branch that an employee has signatory authority over, not including bank owned accounts, that provides information such as number of credits, number of debits and current balance and averages. I target those accounts that have indication of kiting or unusual # of credits. Other accounts may be reviewed at random.

To show the effectiveness of this method, two employees at one branch that were terminated for less than reputable reasons were targeted by this report. One was insider abuse, the others husband was involved in a drug ring.

I used to have each employees statement print an extra copy that came directly to me for review. Now that we have 350 employees, the time to review every account each month became too time consuming. Now I review employees accounts as I do the branch audit. The employees aren't aware of this change. I pull all the activity for the 2 months prior to the branch audit including cds, loans, service fees waived, etc. I am finding this system more manageable.

For 6 years I was compliance officer for a $3 billion bank with well over 500 employees. We used a system similar to that described by LilBitMo. Our focus was on the number of deposits made during a statement cycle. All accounts that exceeded the magic number was reviewed, all executive officer (VP and above) accounts were reviewed at least annually and other accounts were reviewed on a random basis.

It was amazing the number of employees (soon to be ex-employees) we found engaged in cash kiting between their accounts and local grocery stores. They would hit the NSF's, go to lunch, purchase a couple of dollars in merchandise at a local grocery store, write a check for $100. and then deposit the cash before the cut off time. This would happen in some cases almost daily. When they were confronted and all the checks finally cleared many times they had little or no last pay check.