First Keystone Bank Essay

1. Prep ar a list of inwrought control appendages that imprecates and separate financial institutions entertain implemented, or should implement, for their standard atmosphere operations.Financial institutions should implemented the following internal control mappings. The first gear one and only(a) is put on the line Assessment, which actor financial institutions management should identifies, analyzes, and manages risks that shag affect the company. The second one is affirm Environment, this number require management of the institutions billet toward, awareness of, and actions concerning the internal control coordinate to in order to reduce the parody and error. The third one is Control Activities, which means that institutions management should enact specific policies and procedures to fall upon the management objectives.Whats much, they should pick out needed procedures to target the risks. The frontward step is learning and communications. Institutions sho uld gather all necessary study to carry out internal controls. Providing, share and obtaining information is also very important, which is called communication. The function step is Monitoring. Which is an ongoing process to measure out controls and determine whether all the operations are as intended. They changed when operating conditions change.2. What general conditions or factors exploit the audit approach or strategy applied to a bank clients cash dispenser operations by its independent attenders?The auditor should fill the nature, timing, and extent of further audit procedures to suck up decision. The nature of an audit procedure acknowledge its purpose and its shell. So the purpose and the grammatical case of an audit 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 real procedure. The types of audit procedures include superintendence ofdocumentation, inspe ction of assets, observation , external confirmation, recalculation, reperformance, analytical procedure, s posteriorning, and motion. quantify refers to when audit procedures are performed or the item or selective information to which the audit enjoin applies. The higher the risk of textile misstatement, the more likely it is that the auditor may get back it is more effective to perform hearty procedures nearer to the period end preferably than at an earlier date. On the other hand performing audit procedures before the period end may supporter the auditor in identifying significant matters at an early stage of the audit.Extent refers to the metre of a specific audit procedure to be preformed. The extent of audit procedure is determined by the judgment of the auditor after considering the tolerable misstatement, the assessed risk of material misstatement, and the degree of assurance the auditor plans to obtain.3. set specific audit procedures that may be applied to ATM o perations. Which, if any, of these procedures might have resulted in the discovery of the embezzlement organisation at First Keystones Swarthmore branch? Explain.Inspection of documentation, observation, recalculation, analytical procedures, scanning, and inquiry may be applied to ATM operations.I think the following procedures can resulted in the discovery of the embezzlement scheme. The first one is inspection of documentation. Auditors can canvas a client document and examine it with the exact bullion they save and transport out from the ATM. The second one is observation. aspect the procedure of using the ATM to discover sure whether it is used with authority. The third one is analytical procedures. Auditors can analyzing plausible relationships among both(prenominal) financial and nonfinancial data of the ATM. The forth one is scanning. Performing a type of analytical procedure which involves reviewing accounting data to identify unusual items. For example, the amount o f money that put in the ATM is non match the money that actually take out by customers.