Internal Auditor Advice: Reviewing Employee Bank Statements

Question:

I am the internal auditor at our institution and am in charge of reviewing employee bank statements each month. Our employees do not receive their checks, deposit tickets, etc. back in their statements, so my review is limited to what is on paper. I would like some tips on what exactly to look for on these statements. I realize that excessive deposits in relation to their salary is key, but I thought you might have some additional suggestions.

Answer:

What we look for is more subjective than objective, like:

Rhythmic deposits and withdrawals that occur on the same day of the week or date of the month -- that don't coincide with paydays;
Even-numbered-dollar deposits (e.g., $40.00);
Similar employee names but different SSNs (e.g., James T. Smith 555-55-5555 and Jane T. Smith 566-66-6666);
Deposits made to employee accounts right after a branch/department audit; and
Deposits made to employee accounts right after a traumatic event (e.g., robbery, bomb threat or disaster).

First published on BankersOnline.com 3/19/01