Internal Audit of a Bank's 'Stationery' - Inventory

[Xenophobic]

Hello,
I am a Trainee at a Bank's Internal Audit Department and my Supervisor has told me to audit the Bank's "Stationary" which comes under Inventory. I have gone through the last year's Audit report of the Stationary Department and found it helpful too.

I did Google and tried to find the points I might note down when I start the fieldwork but since this is my first audit I am really not sure about what to inquire about and test check, the formats to work on, the points to add. \

Can you please guide me about issues to concentrate on. The points I should pay more attention to or make enquiries about specifically.

Thank you.

PS. I did go through the other posts and the stuff there is AMAZING! Great job!!! =)

[Richard Regalado]

Hi Xeno. What kind of bank stationery are you auditing? Letterheads with envelopes? Or something more critical?

[Xenophobic]

In Reply to Parent Post by Richard Regalado

Hi Xeno. What kind of bank stationery are you auditing? Letterheads with envelopes? Or something more critical?

Well, it's more like the inventory that includes every bit of 'stationery' used e.g. cheque books, letter pads, security stationery. I think it has more to do with the audit of inventory and the audit procedures involved. I could check for completeness and for physical existence, cut off etc. But I need general tests to be performed that related specifically to the audit of inventory (stationery)

Thank you for responding =)

[Ajit Basrur]

In Reply to Parent Post by Xenophobic

Well, it's more like the inventory that includes every bit of 'stationery' used e.g. cheque books, letter pads, security stationery. I think it has more to do with the audit of inventory and the audit procedures involved. I could check for completeness and for physical existence, cut off etc. But I need general tests to be performed that related specifically to the audit of inventory (stationery)

Thank you for responding =)

I am not sure about the Banking industry however I feel that there should be some Banking or Financial regulatory guidelines.

[Richard Regalado]

Other than the normal request and release activities that comes along with the inventory process I would check for authorization levels and access rights. Access to cheque books, security paper and other bank-sensitive stationery would need access-level controls and not all should be granted access to these documents. You may include in your audit the following:

- access control list - who can access certain types of stationery and what is the process of ensure the access control list is current

- review of access rights - look at changes in the employment of people granted access to secure stationery. look for lateral transfers, persons leaving the organization, etc.

- secure disposal for secure documents - who is responsible, method of disposal, sign-offs, etc.

Hope the above makes sense.

p.s.

- reorder quantity - is there an established threshold for reordering the letterheads?
- NDA - where are these security documents stored? is this location confidential?

[Xenophobic]

Dear Mr. Basrur, I did try to find that too but I couldn't.

[Xenophobic]

In Reply to Parent Post by Richard Regalado

Other than the normal request and release activities that comes along with the inventory process I would check for authorization levels and access rights. Access to cheque books, security paper and other bank-sensitive stationery would need access-level controls and not all should be granted access to these documents. You may include in your audit the following:

- access control list - who can access certain types of stationery and what is the process of ensure the access control list is current

- review of access rights - look at changes in the employment of people granted access to secure stationery. look for lateral transfers, persons leaving the organization, etc.

- secure disposal for secure documents - who is responsible, method of disposal, sign-offs, etc.

Hope the above makes sense.

p.s.

- reorder quantity - is there an established threshold for reordering the letterheads?
- NDA - where are these security documents stored? is this location confidential?

Dear Mr. Regalado, thank you so much! That made perfect sense! I am going to kick off by gaining a complete understanding of the Stationary Department. That should make matters easier and find me more tests to perform too.

Thank you =)

[Jim Wynne]

In Reply to Parent Post by Xenophobic

Hello,
I am a Trainee at a Bank's Internal Audit Department and my Supervisor has told me to audit the Bank's "Stationary" which comes under Inventory. I have gone through the last year's Audit report of the Stationary Department and found it helpful too.

I did Google and tried to find the points I might note down when I start the fieldwork but since this is my first audit I am really not sure about what to inquire about and test check, the formats to work on, the points to add. \

Can you please guide me about issues to concentrate on. The points I should pay more attention to or make enquiries about specifically.

Thank you.

PS. I did go through the other posts and the stuff there is AMAZING! Great job!!! =)

Is this quality management system audit, or part of a financial audit?