Procedure within GENERAL AUDIT SOFTWARE?:
Open the CASA Master file within GENERAL AUDIT SOFTWARE.
SAVING ACCOUNT WITH CHEQUE BOOK AND INCORRECT MIN BALANCE REQUIRED TO BE MAINTAINED — Perform data — Direct extraction on the CASA Master by applying the command?:
[@list(product code, “SB GEN”) .AND. cheque-book issued flag = “Y” .AND. @nomatch(customer type code, “STAFF”, ‘EX STAFF”, “PENSIONER”)
.AND. minimum balance required <> 1000].
This report will provide a list all saving accounts (other than NRE), who are not STAFF, EX-STAFF, PENSIONER, having a cheque-book facility and where minimum balance required to be maintained in the account as per the system is other than
Rs.1000. Rs.1000 is defined by the bank policy.
SAVING ACCOUNT WITHOUT CHEQUE-BOOK AND INCORRECT MIN BALANCE REQUIRED TO BE MAINTAINED — Perform data — Direct extraction on the CASA Master by applying the command?:
[@list(product code, “SB GEN”) .AND. chequebook issued flag = “N” .AND. @ nomatch(customer type code, “STAFF”, ‘EX STAFF”, “PENSIONER”) .AND. minimum balance required <> 500].
This report will provide a list all saving accounts (other than NRE), who are not STAFF, EX-STAFF, PENSIONER, having no cheque book facility and where minimum balance required to be maintained in the account as per the system is other than Rs.500. Rs.500 is defined by the bank policy.
CURRENT ACCOUNT WITH CHEQUE BOOK AND INCORRECT MIN BALANCE REQUIRED TO BE MAINTAINED — Perform data — Direct ex-traction on the CASA Master by applying the command?:
[@list(product code, “CURRENT”) .AND. chequebook issued flag = “Y” .AND. minimum balance required <> 5000].
This report will provide a list of all current accounts, having a cheque-book facility and where minimum balance required to be maintained in the account as per the system is other than Rs.5000. Rs.5000 is defined by the bank policy.
Transaction maintenance:
Control objective: Non-recovery of folio charges on saving accounts.
Control objective description: Folio charges are to be recovered in case of saving accounts having withdrawals in excess of 50 numbers/lines per half year. The charges per withdrawal in excess of 50 may differ from bank to bank and the type of saving account.
Procedure within GENERAL AUDIT SOFTWARE:
1. Open the CASA Ledger within GENERAL AUDIT SOFTWARE.
2. SAVING ACCOUNT WITH WITHDRAWALS FOR HALF YEAR — Perform data — Direct extraction on the CASA Ledger by applying the command:
[@isini(“SAVING”, product name) .AND. @ list(tran code, 1001, 6101, 1006, 1013) .AND. @betweendate(tran date, “20080401”, “20080930”)]
This intermediate report will provide a list of all withdrawals through cash (1001), cheque (6101), debit funds transfer (1006) for all Saving accounts for the half-year transaction period April 2008 to September 2008.
3. SAVING ACCOUNTS WITH CUMULATIVE WITH- DRAWALS FOR HALF YEAR — Perform Analysis — Summarisation on the above intermediate report. “Fields to Summarise” to be selected from drop down field list as “account number”. This intermediate report will provide an account wise summary of all withdrawals — cash, cheque, debit funds transfer for all SAVING accounts for the transaction period 8th April to 8th September 08 along with the number of withdrawals (i.e., entries).
4. COMPUTATION OF SERVICE CHARGES — Perform — Data — Field manipulation — Append
— Virtual numeric field having name “Service Charges” to the intermediate report generated at Step 3 above. Enter the command no_of_recs
* 1 in the parameter. This new field will provide service charges (folio charges) to be recovered from the account holder towards excess with-drawals over 50 entries.
5. IDENTIFYING SAVING ACCOUNTS WITH WITH-DRAWALS IN EXCESS OF 50 — Perform data — Direct extraction on the intermediate report generated at step 4 above by applying the command:
(no_of_recs > 50)
This final report will provide all SAVINGS ac-counts where half-yearly withdrawals are greater than 50 entries along with service charges to be recovered.
These cases can be checked physically with the Statement of Accounts for the relevant saving accounts in the final report for recovery of folio charges and the accuracy of charges recovered.
Cheque maintenance:
Control objective: Non-recovery of cheque-book issue charges on saving accounts.
Control objective description: Cheque-book issue charges are to be recovered in case of saving accounts, having a cheque leaves issued in excess of 60 numbers per year. The charges per cheque leaf issued in excess of 60 may differ from bank to bank and type of saving account.
Procedure within General Audit Software:
1. Open the Cheque Report within the General Audit Software.
2. SAVING ACCOUNTS WITH CHEQUES ISSUED DURING ANY YEAR — Perform data — Direct extraction on the Cheque Report by applying the command:
[@isini(“SAVING”, product name) .AND. @ betweendate(cheque issue date, “20080101”, “20081231”) .AND. cheque leaves > 60 .AND. .NOT. @isini( “staff”, product name)]
This intermediate report will provide a list all cheque leaves issued in excess of 60 leaves for SAVING NON STAFF accounts in the transaction period of January 2008 to December 2008.
3. COMPUTATION OF CHEQUE ISSUE CHARGES — Perform — Data — Field Manipulation — Append — Virtual numeric field having name “Cheque Issue Charges Savings” to the intermediate report generated at step 2 above. Enter the command (cheque leaves-60) * 2. This new field will provide cheque issue charges to be recovered from the account holder.
4. CHEQUE-BOOK ISSUE CHARGES RECOVERED DURING ANY YEAR — Perform data — Direct Extraction on the CASA Ledger by applying the command:
[tran descp = “SC For Cheque-Book Issue” .AND. @isini(“SAVING”, product name)]
This intermediate report will provide a list of transactions on SAVING accounts where service charges for cheque-book delivery have been recovered.
5. CHEQUE-BOOK ISSUE CHARGES NOT RECOV-ERED DURING ANY YEAR — Perform — File —Join — select the intermediate report generated in step 2 above as the Primary File. Select the intermediate report generated in Step 4 above as the Secondary File. Click on Match. Match the two files on matching key — “account number” in Primary file and “account number” in Secondary file. Use the Join condition “Records with no Secondary Match”.
This final report will provide a list of saving accounts where cheque leaves issued in any year are more than 60 (annual free cheque leaves entitlement) and cheque-book issue charges have not been recovered.
Temporary Overdraft Interest Charges:
Non-recovery of interest on Temporary Overdrafts (TODs) granted to saving accounts.
Introduction:
TODs are granted by the bank to an account holder when the account holder is short of available balance to meet specific payments on his account. The TOD is granted under the assurance by the account holder that the temporary overdraft would be made good through incoming funds in transit. TODs can be System TODs or Adhoc TODs. An account holder should normally not be granted multiple TODs, until earlier TODs are regularised. TODs which are not regularised within the limit end date should be specially taken up for scrutiny. Consistent delay in regularisations on few accounts should be dealt with strictly through punitive action.
Method within General Audit Software:
1. Open CASA TOD Ledger within the General Audit Software.
2. SAVING ACCOUNT TOD INSTANCES GRANTED — Perform data — Direct extraction on the CASA TOD Ledger by applying the command — (product name = “SAVING”)
3. Open CASA ledger within GENERAL AUDIT SOFTWARE.
4. INTEREST CHARGED on SAVING ACCOUNT TOD INSTANCES — Perform data — Direct extraction on the CASA Ledger by applying the command– (tran code = 5002 .AND. product code = 101)
Tran code 5002 stands for INTEREST DEBITS and PRODUCT CODE 101 stands for SAVING GENERAL accounts.
5. ACCOUNT SUMMARY LIST OF SAVING TODs – Perform Analysis — Summarisation on the intermediate report generated at Step 2. Select ‘account number’ as Fields to Summarise.
6. ACCOUNT SUMMARY LIST OF INTEREST CHARGED ON SAVING TODs — Perform Analysis — Summarisation on the intermediate report generated at Step 4. Select ‘account number’ as Fields to Summarise.
7. INTEREST NOT CHARGED ON SAVINGS TODs GRANTED — Perform — File — Join — select the intermediate report generated in Step 5 above as the Primary file. Select the intermediate report generated in step 6 above as the Secondary file. Click on Match. Match the two files on matching key — “account number” in Primary file and “account number” in Secondary file. Use the Join condition “Records With No Secondary Match”.
Conclusion:
General Audit Software Programmes are time-tested, stable, robust, powerful, internationally acclaimed and user-friendly applications designed by auditors for auditors. No tool is a ready substitute for the Auditors acumen and judgment, but tools are a powerful, cost-effective facilitator to large-scale electronic data analysis running into millions of records.
Revenue assurance in the banking sector can be made convenient and effective through the use of such tools.
Under a more evolved Enterprise Wide Continuous Monitoring Framework, General Audit Software Programmes can be used to automate the process of exception generation, issue escalation, resolution, feedback and learning for the business process handling Revenue Assurance.
