CBA Banking Operations Audit 2

Question 1

During an audit of wire transfer operations, an auditor discovers that a single employee can initiate, approve, and release funds. This is best described as a failure of:

Accepted Answer

Segregation of duties

Answer

Segregation of duties requires that no single individual controls all phases of a transaction to prevent fraud and errors.

Question 2

A bank's teller cash drawer limit is set at $10,000. An auditor finds that several tellers regularly carry $15,000–$18,000 in their drawers. The PRIMARY audit concern is:

Accepted Answer

Violation of operational policy limits

Answer

Exceeding established drawer limits violates operational policy and exposes the bank to uncontrolled cash risk.

Question 3

Which control is MOST effective at detecting kiting schemes in a bank's demand deposit operations?

Accepted Answer

Float analysis and interbank account reconciliation

Answer

Float analysis and interbank reconciliation reveal artificially inflated balances created by exploiting check clearing delays.

Question 4

An auditor reviewing safe deposit box operations finds that access logs are maintained manually and have gaps. The MOST significant risk is:

Accepted Answer

Inability to detect unauthorized box access

Answer

Incomplete access logs remove the audit trail needed to detect and investigate unauthorized entry to safe deposit boxes.

Question 5

Under Regulation CC, which of the following hold periods applies to a non-local check deposited by a new account holder (account opened fewer than 30 days)?

Accepted Answer

Up to 9 business days

Answer

Regulation CC allows banks to impose an exception hold of up to 9 business days for new accounts to mitigate fraud risk.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Banking Operations Audit 2