CBA Banking Operations Audit 3

Question 1

A bank auditor reviewing ATM operations finds that ATM cassette loading is performed by a single technician with no witness present. Which risk does this control gap MOST directly create?

Accepted Answer

Cash skimming or misappropriation

Answer

Without a witness during cassette loading, a single technician can pocket cash without detection, creating a theft risk.

Question 2

Which of the following is the BEST indicator that a bank's account reconciliation controls are operating effectively?

Accepted Answer

All reconciling items are researched and resolved within 30 days

Answer

Timely resolution of reconciling items demonstrates that exceptions are investigated and corrected, not just identified.

Question 3

During an audit of ACH operations, an auditor finds the bank lacks a formal return item monitoring process. The PRIMARY exposure is:

Accepted Answer

Violation of NACHA rules and potential financial loss from undetected unauthorized debits

Answer

NACHA rules impose return rate thresholds, and failure to monitor returns can result in financial loss and NACHA sanctions.

Question 4

An internal auditor testing dormant account controls discovers that several accounts have been reactivated and funds withdrawn without documented customer contact. This pattern MOST likely suggests:

Accepted Answer

Potential employee fraud through unauthorized account reactivation

Answer

Unauthorized reactivation of dormant accounts followed by withdrawals is a classic pattern of internal employee fraud.

Question 5

What is the purpose of a 'proof of cash' in banking operations audits?

Accepted Answer

To reconcile beginning balance, deposits, disbursements, and ending balance across periods

Answer

A proof of cash is a four-column reconciliation that validates both beginning/ending balances and total debits/credits for a period.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Banking Operations Audit 3