Examining the cash balance at the bank branch is routine job for the senior officer of the branch assigned with the job. Physical verification may be carried out by the branch head on a surprise basis. The statutory auditors appointed by the bank have to verify the cash balance at the branch at the end of 31st March. In addition to the above the internal and other external auditors (including concurrent auditors) of the bank have to examine the cash balance or internal auditor (inspector) on a surprise basis, at any time shortly before the day beginning or after the day end. This is to serve as administrative support to branches, help in adherence to prescribed systems and procedures and prevention and timely detection of lapses/irregularities in respect of safety of the cash maintained in the branch.
Auditors/Bank inspectors are expected to follow the below-mentioned checklist for cash verification:
- Whether the branch is following the branch opening timings as per the guidelines and the branch manager is present at the time of the opening of the branch.
- Whether all the other doors are locked at the time of the opening of the cash room
- Whether the strong room, cash vault/ cash safe are opened by the Joint Custodians.
- Whether the cash balance shown in the books agrees with the actual cash balance at the time of physical verification.
- Whether the cash being carried out in a locker box from the cash room to the counter and vice versa
- Whether the branch is maintaining the records of mutilated notes accepted from the public.
- Whether the branch is consistently maintaining unduly large balances of cash in the branch exceeding the limit sanctioned by the administrative office.
- Whether any unrecorded security items or documents are kept in the cash vault/cash safe
- Whether the burglary alarm system is working properly
- Whether the cash counting machine and UV lamps are in a working condition
- Whether the instructions on custody of keys of dual key locking mechanism and safe-keeping of duplicate keys strictly followed.