This story gets more views than any other on my blog, except for the wooden beer carrier. But nobody ever leaves any comment. Do you like it? Was it interesting? Was it lame? Did it leave you with more questions? OK, I’m going to beg you, please leave some sort of comment after you’re done.
When I was the Manager of Internal Audit at a bank, they had a separate computer application to manage commercial loans. This was because the commercial loan system was new and had not been integrated with the retail system. This situation had been in place for almost a year. But the tellers who processed these loan payments had to enter them into the retail banking system to properly account for the cash, and the retail system did not have any automated interface with the commercial loan system. So the “other side of the transaction” from the debit to cash was posted to a “suspense account.” Suspense accounts are notorious for problems, issues, fraud, errors, etc. They can be set up for any number of reasons. Most of the time, the reason is related to timing of the transaction in that only part of the transaction is completed first, and another part requires time or research or some other manner of processing.
For the complete story
These posts are now available in a compilation Kindle ebook on Amazon and also in a paperback format. I might even look into publishing it in actual book form. Search Amazon for W. Benson Dana and Tales From The Trenches: A CPA Internal Auditor’s Stories of Fraud, Internal Controls, Auditing, and Embezzlement.
accounting, bank auditing, Banking, cash, fraud theft embezzlement internal controls small buisiness, Internal Audit, internal controls