First keystone bank essay

1 . Prepare a list of inner control methods that banks and other banking institutions have executed, or ought to implement, for ATM functions.

Financial institutions should implemented this internal control procedures. The first is Risk Assessment, meaning financial institutions’ management should identifies, evaluates, and deals with risks that may affect the organization. The second the first is Control Environment, this procedure need management with the institutions attitude toward, knowing of, and activities concerning the inner control composition to to be able to reduce the fraudulence and problem.

The third one is Control Activities, which means that institutions’ management ought to enact certain policies and procedures to achieve the management goals.

What’s more, they have to take necessary procedures to focus on the risks. The forth step is info and sales and marketing communications. Institutions ought to gather every necessary details to carry out internal controls. Providing, sharing and obtaining information is also extremely important, which is called connection. The last step is Monitoring. Which is an ongoing process to evaluate controls and determine if all the operations are since intended.

They changed when working conditions alter.

2 . What general conditions or elements influence the audit way or strategy applied to a bank customer’s ATM functions by their independent auditors?

The auditor should consider the nature, timing, and extent of further taxation procedures for making decision. The nature of an audit procedure consist of its purpose and its type. So the goal and the type of an taxation procedure will influence the audit approach. The purpose of audit procedure determines whether it is a risk assessment procedure, a test of controls, or a substantive treatment. The types of review procedures contain inspection of documentation, inspection of assets, statement, external confirmation, recalculation, reperformance, analytical treatment, scanning, and inquiry.

Time refers to the moment audit methods are performed or the period or info to which the audit evidence applies. The greater the risk of material misstatement, the much more likely it is the auditor may decide it really is more effective to execute substantive types of procedures nearer for the period end rather than at an earlier time. On the other hand carrying out audit techniques before the period end may possibly assist the auditor in identifying significant matters early on of the examine.

Extent identifies the quantity of a particular audit procedure to be preformed. The magnitude of examine procedure depends upon the common sense of the auditor after thinking about the tolerable misstatement, the examined risk of material misstatement, and the degree of guarantee the auditor plans to acquire.

3. Discover specific taxation procedures that will be applied to ATM operations. Which will, if virtually any, of these types of procedures might have triggered the discovery of the embezzlement scheme in the beginning Keystone’s Swarthmore branch? Explain.

Inspection of documentation, observation, recalculation, conditional procedures, checking, and request may be applied to ATM procedures.

I think this procedures can resulted in the discovery of the embezzlement system. The first one is usually inspection of documentation. Auditors can examine a client record and evaluate it while using exact cash they conserve and sign up for from the ATM. The second you are observation. Looking the procedure of using the ATM to make sure whether it is used with power. The third one is analytical techniques. Auditors can easily analyzing credible relationships among both economic and non-financial data from the ATM. The forth you are scanning. Doing a type of conditional procedure that involves reviewing accounting data to spot unusual things. For example , how much money that put in the ATM is usually not meet the money that truly take out by customers.

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