First Keystone Bank Case 3.4
02-01-2015
1. Internal Controls:
Audit should be performed weekly/monthly by an outside auditors or account. Someone unconnected to the records/balance sheets
A segregation of duties, never allow one person to complete a transaction from start to finish
Rotate personnel, this should be done randomly and for a lengthy period of time to make it effective
Require vacation to be taken yearly by personnel and for at least one-two weeks, therefore putting someone else in the position for the time being
Pre-numbered documents, this creates an audit trail

2. During the external auditors questionnaire/interview of the supervisor/client the auditor would have asked who performed the resupplying of the ATM and locked vault, also who maintained the ATM’s ledger control sheets. When the auditor was notified that Moronese and Barksdale were in control of those procedures this would have raised a red flag. These activities should not be done from start to finish by the same people. Therefore the auditor would do further investigating of ledgers, balance sheets, and banking system. This would lead to the discovery that the two had been editing the ledger.
3. Specific audit procedures that may be applied to ATM operations could include the verification that the amount of currency that was reported on balance sheets and in bank systems matches the report printed directly from ATM. Also make sure the amount of currency in the ATM reconciles with bank system.