Chapter 3 – Transactions audit

This module allows you to select samples of individual transactions for audit examination, and helps you identify any 'unusual' transactions.

0. Introduction

0.1 Description of audit test

0.2. Suggested sequence and frequency of using this module

0.3. Essential Financial Package information

1. Transactions Profile

2. Print Transactions Profile

3. Selection Parameters

3.1 Input Parameters

3.2 Sorting Order

4. Transactions Selection

5. Print Transactions Selection

6. Journal Audit

7. Print Journal Audit

8. Cheque Clearance Test

9. Print Cheque Clearance Test

10. Clear Transactions Audit Files

0. INTRODUCTION

0.1. Description of Audit Tests

A major problem with auditing transactions manually is how to sample them. There are usually thousands of transactions made by even small financial organisations. It is very difficult, and often impossible for the auditor to find out exactly what transactions have been made, and what significance they might have to the accounts.

The main purpose of the 'Transactions Audit Module' is to let CAPS examine every transaction on file between any two dates and:

  • Prepare a summary 'profile' of all the transactions
  • Highlight accounts containing any unusual transactions
  • Select samples of transactions for audit testing
  • Select 'unmatched' journal transactions for testing.

It is also flexible enough to let you use your imagination to develop your own special audit tests to look at specific situations, for example:

  • Overall 100 percent 'reasonableness' checks on Financial Institution duty payments made to the government
  • Searching for a particular type of transaction you know was made on a particular date.

0.1.1. Transactions Profile

This is simply a list of every transaction code used by the Financial Institution during the period under audit. It tells you how many transactions of each type were made to the Loans, Savings and Investment ledgers, and the maximum, minimum and average dollar value of each transaction code.

This has proved extremely useful. For example, simply by looking at this report, auditors of different Financial Institutions have immediately discovered that:

  • Transactions of a type they weren't aware of are being made
  • A new transaction code has been incorrectly set up and used
  • Cash withdrawals are fraudulently being made against loan accounts
  • An agency is fraudulently granting loans
  • Loan charges are being posted to investment accounts in error
  • Journal debits are being fraudulently made to loan accounts.

Without CAPS, these problems might have only been discovered by chance.

The Transactions Profile can be run on selected branches, departments, operators, account levels or class. This means you can evaluate the operations of an individual branch by the types and values of transactions going through that branch. You can also examine all transactions carried out by individual operators. If you only require details on specific Account Levels, processing speed is greatly improved.

0.1.2. Highlight Unusual Transactions

Using menu option 3 - PARAMETERS you can instruct CAPS to identify certain types of 'unusual' transactions. You have two 'tests' to choose from: the 'Dollar Value Test', and the 'Proportion Test'.

In CAPS 3, we have expanded both tests to two tail tests, i.e. you can select transactions above or below specified values.

The Dollar Value Test lets you instruct CAPS to select all transactions greater than or smaller than a particular dollar amount. For example, you can instruct CAPS to select all cash withdrawal transactions greater than the authorised maximum of $1,000; or select all cash withdrawals below $20.

The Proportions Test lets you select accounts which have an unusual proportion of transactions of a particular type. For example, a loan account with monthly repayments which is 'normal' should have about 50 percent interest debits, and 50 percent payments. Therefore you might ask CAPS to select all accounts which have interest debit transactions representing more than 50 percent of the total number of transactions to identify accounts that are not being repaid regularly. Similarly, you can instruct CAPS to select all accounts with less than say one percent interest debit transactions to identify accounts with no interest charged.

The significance of this is that CAPS selects the transactions for you from the computer records. It is almost impossible to do these selections manually. What it means is that you can concentrate most of your audit examining those items which are unusual, rather than selecting, and testing transactions that are unlikely to have errors.

0.1.3. Selecting Transaction Samples for Audit Testing

One of the more frustrating and time-consuming tasks is simply selecting the sample of transactions for testing, and then writing down the details.

For example, if you wanted to carry out an audit test on samples of cash deposits at agents, you will probably need to search manually through many pages of transaction printouts looking for those specific transactions. It can take a long time. And, importantly, you can never be sure that you are selecting your sample from the total population, so you can never be totally sure you have a representative sample.

Using menu option 3 - PARAMETERS, you simply tell CAPS the transaction code and the number of transactions you want it to select. CAPS then automatically selects a truly random sample of the transactions. It also accurately prints out the complete details of each transaction, including the branch and terminal number which recorded the transaction. This makes it much easier for you to carry out your audit tests.

0.1.4. Selects 'unmatched' journal and 'transfer' transactions

A large proportion of journal and transfer transactions only transfer amounts between accounts belonging to the same member. We've called these 'matched' transactions. They are not as significant to the auditor as 'unmatched' journals, and yet it is usually difficult or impractical to manually separate them.

For example, if a member transfers funds from their S1 account to their S4 account then there will be a 'matching' transaction pair posted to this members accounts. If there is not a 'matching' transaction pair within the members accounts then this implies that the transfer as gone to another member's account. These are 'unmatched' journal or transfer entry transactions.

CAPS allows you to specify the pairs of journal transaction codes to match, eg 52 - 32. Subject to your parameters CAPS will select all journal and transfer entries which are 'unmatched'. CAPS then allows you to sample from these transactions.

0.1.5. Examples of Specific Audit Tests

You'll already realise that CAPS gives you the tools to do audit tests and examinations that just weren't practical or even possible before. After you've gained experience with CAPS you'll be able to use your imagination and auditing experience to devise your own tests which examine specific problems or situations.

Here are some examples:

  • Check on Overall Financial Institution Duty (FID) Charge: You can get CAPS to construct a 'Profile' for a particular month. A quick calculation on those transaction codes which attract FID might give you a reasonable approximation of the amount of the FID payment which should have been made for that month.
  • Fraudulent ATM Transactions: If a discrepancy is discovered at an automatic teller machine you might be able to use CAPS selection parameters to print out all ATM transactions made on that particular day. You could then do detailed checks on each transaction to help identify the discrepancy.

0.1.6. Cheque Clearance Test - Kiting

Kiting is a practice by which a member can artificially inflate the balance of their account. The two most common methods involve misuse of the cheque clearing delay. They are a) - The member repeatedly transfers funds between two cheque accounts. b) -The member repeatedly deposits cheques into their single cheque account. Access to authority for immediate clearance of cheque deposits is necessary for the practice of kiting, consequently only employees or friends of employees are able to kite.

CAPS will test for the latter method of kiting via the Cheque Clearance Test. Here is an example of this type of kiting:

The member deposits a cheque in their account for $10,000. The cheque is immediately cleared and the member gets the benefit of the amount for the period between the deposit and the actual withdrawal (days later). Before the actual withdrawal date the member deposits another cheque to maintain the inflated balance. The member continues depositing every few days thereby continuously maintaining their inflated balance. Eventually if the member wishes to discontinue this process, they will have to pay back the original amount of the cheque but have had the benefit of an interest free loan.

0.2. Suggested sequence and frequency of using this module

This module is a transactions audit tool and can be used at any time during the year. Any period can be selected for testing from one day to the whole year, provided no transactions relating to the selected period have been purged.

External auditors might want to use this module to check a three month or six month period. Internal auditors may find it useful to use the module much more frequently. It can even be used to monitor transactions on a daily basis.

The steps to using the module are the same no matter what period you choose. They are as follows:

Step  
1. Construct a Transactions Profile of the Financial Institution's Loans, Savings and Investment account transactions using menu option 1 - TRANSACTIONS PROFILE. You will usually run this overnight
2.

 

 

 

 

The next day (or at any time later) use menu option 2 - PRINT TRANSACTIONS PROFILE
  • After reviewing the Transactions Profile, decide what audit tests you should carry out. In particular, decide what size of sample of individual transaction codes to select. You'll see a space has been printed on the printout for you to write in your sample sizes.
  • If you have a standard set of parameters you use from audit to audit, you can skip this.
  • When you have decided what sample to choose, use menu option 3.1 - INPUT PARAMETERS to tell CAPS your choice.
  • Finally use menu option 4 - TRANSACTIONS SELECTION to instruct CAPS to select the sample. CAPS will do this overnight
3.

 

When the audit has completed, use menu option 5 - PRINT TRANSACTIONS SELECTION to print out a listing of all the transactions CAPS has selected
  • Carry out your audit tests on the individually selected accounts as appropriate.
4. You can decide to do a 'Journal Audit' at any time by selecting menu option 6 - JOURNAL AUDIT. It is independent of the main transactions audit module. CAPS will select all the 'unmatched' journal transactions overnight.
5. Next morning, (or at any time later) use menu option 7 - PRINT JOURNAL AUDIT to get CAPS to select and print samples of 'unmatched' journals and 'transfers' from the complete list it generated overnight.
6.

When you are satisfied the transactions audit is complete, and you have no further use for any of the CAPS files generated during the audit, you can select menu option 8 - CLEAR TRANSACTIONS AUDIT FILES to release the space taken up on the Financial Institution's computer system.

0.3. Essential Financial Package Information

0.3.1. Transaction codes

The Financial Package allows the Financial Institution to define different 'transaction codes'. It does this by adding a code to each transaction. For example:

Code

Description

25

Cash deposit

26

Cheque deposit

40

Journal credit

50

Cash withdrawals

51

Cheque withdrawals

60

Journal debit

61

ATM transaction

Note that codes 1-49 are Credit Transactions, codes 50-99 are Debit Transactions.

The Financial Institution can define its own codes. Ask for a list of their authorised transaction codes and make sure you understand what each is used for. You should then check this list to the 'Transactions Profile' printout which shows you each transaction code the institution has actually used during the period under review.

In most cases the Financial Package automatically allocates the transaction code to each transaction as it is entered. However you should be aware that in some cases authorised staff can alter the computer-allocated transaction code.

1. TRANSACTIONS PROFILE

This gives you a profile summary of the different transaction codes made by the Financial Institution. It helps you target transactions for later selection for voucher checking. It also highlights unusual transactions use.

The Transaction Profile parameter input screen looks like this:

< 1> Period Start

Enter the start day (inclusive) of the period you want CAPS to prepare a Transactions Profile for.

< 2> Period End

Enter the last day for the period you want CAPS to prepare a Transactions Profile. This date can be the same as the Period Start for a 1 day Transactions Profile, or any date after the Period Start as long as the transactions are still on file.

< 3> Use effective date

Enter the last day for the period you want CAPS to prepare a Transactions Profile. This date can be the same as the Period Start for a 1 day Transactions Profile, or any date after the Period Start as long as the transactions are still on file.

<4> Recalculate current balance

CAPS can confirm the current closing balance agrees with the balance on file for each account. In order to do this, every transaction on file would have to be summed and added to the Opening Balance on file. This will add considerably to the processing time. If you wish to recalculate the current balance, enter “Y”, otherwise enter “N”.

<5> Branch (window)

Enter the branch number(s) you wish to include in the Transactions Profile.

If you wish CAPS to include all branches, leave this field blank.

<6> Dept (window)

Enter the Department number(s) you wish to include in the Transaction Profile. Each client has only one department number for all accounts so if the clients department does not match, none of his or her transactions from any account can be included in the profile.

If you wish to include all departments, leave this field blank.

<7> Operator (window)

Enter the operator numbers for the operators you wish to include in the Transactions Profile. You can also enter a range of operators, such as 1 - 20.

If you wish CAPS to include all operators, leave this field blank.

<8> Acct Level

Enter the Account Level(s) you wish to include in the Transaction Profile. You may want to run the profile for account levels in a particular range. For example L1-10 would select all loan accounts within the account level range of 1-10. You can enter the account levels individually. For example, on each separate line you can enter L1 L4 I5 S10. The Transaction Profile will only select those transactions that match that account level.

<9> Class

Enter the Class(es) you wish to include in the Transaction Profile. Leave this field blank for all Classes.

Remember that the above parameters will apply to the Transactions Selection process as well.

- if you are in Test Mode, CAPS asks:

You are in Test Mode. Do you want to start ‘Transaction Profile’ now?

Enter [Y] if you want CAPS to prepare a profile of a small test sample of transactions.

Enter [N] if you wish to return to the Transactions menu.

- if you answer [Y], CAPS asks:

Records to process

Enter the number of records you want CAPS to use as a test sample.

CAPS displays messages to let you know what it is doing. When finished it returns to the Transactions menu.

- if you are not in Test Mode, CAPS asks:

Do you want ‘Transaction Profile submitted for overnight running?

Confirm (Y/N)

Enter [Y] to add to overnight queue.
Enter [N] to cancel the request, and return to the Transaction menu.

Result

If you chose a test sample only, CAPS immediately runs 'Transactions Profile'. If you chose a full live sample, CAPS sets up an instruction for 'Transactions Profile' to be run overnight under 'NIGHT AUDIT'. (See CAPS UTILITIES, Section 2 – NIGHT AUDIT for more details).

The following message will report the progress of this audit:

Accounts: scanned=nnnn           processed=nnnn       

The results of running 'Transactions Profile' are stored on file for future printing.

2. PRINT TRANSACTION PROFILE

This lets you print out the results of running a Transactions Profile.

Print Password

Enter your print password. No user can print a report unless they have their print password. The user will be given two opportunities to enter the correct password or CAPS will automatically shut down. This feature provides security to reduce the likelihood of unauthorised users gaining access to CAPS reports.

YOU MUST COLLECT THE PRINT OUT IMMEDIATELY !
DO NOT LEAVE AT THE PRINTER !

Result

Please refer to the example at the end of the chapter.

3. TRANSACTION SELECTION PARAMETERS

3.1 Input Parameters

This lets you decide on what basis you want CAPS to select a sample of Member’s transactions for testing. There are a possible 3 reports that may be generated: A “Sample” report, a “Dollar Value” report, and a “Proportions” report.

The first screen allows you to choose which ledger to input parameters for:

Type in the number corresponding to the ledger you wish to create parameters for. Type [4] to have the current parameters printed.

CAPS will allow the user to input the relevant information for the ledger selected as per the screen below:

The screen shows which ledger the parameters are being input for (i.e. Loans). Please bear in mind that there are five fully independent tests here. There is a random sample selection, two dollar value selections and two proportion selections. The sample size has no bearing on the dollar value or proportion tests. Enter a number for Sample Size if you wish to have a report of a random sample of that Tran Code. The dollar value and proportion tests will find ALL transactions exceptions regardless of the sample size in the random sample selection test. All the tests are reported separately.

< 1> Transaction Selection Parameters (window)

Tran Code

Enter the transaction code for the particular transaction code you want CAPS to select samples of. It must be a valid transaction code.

NOTE: If you cannot enter a particular transaction code, this will be because CAPS has not detected any transaction codes of this type in the Transactions Profile. If this occurs, check your Transaction Profile report to determine if CAPS has detected any transactions of this type.

No of Tran.

CAPS immediately tells you how many transactions there are of that type from the profile.

If you were to run the profile and selection in the same night CAPS would adjust your selection parameters if necessary to suit the profile results. It will adjust the populations of each transaction code the population determined in the profile. It will also adjust the Sample Size down if the one in your parameters is larger than the actual population.

Sample Size

CAPS lets you enter how many transactions you want it to randomly select and report on this particular Tran Code. If you just want to do dollar value or proportion tests, you can leave this field blank to by-pass this report.

Low $ Value

If you wish to perform Low Dollar Value Tests, enter the value here. CAPS will select transactions with a value (amount) below this value. If you do not enter a value, this test will be ignored.

High $ Value

If you wish to perform High Dollar Value Tests, enter the value here. CAPS will select transactions with a value (amount) higher than this value. If you do not enter a value, this test will be ignored.

Low % Prop.

If you wish to perform the Low Proportion Test, enter a percentage figure here. CAPS will select every account which has a lower proportion of transactions of this type than the figure you enter.

For example, if you consider 10% to be a low proportion of interest charge transaction on a members loan account, you enter [10] here.

High % Prop.

If you wish to perform the High Proportion Test, enter a percentage figure here. CAPS will select every account which has a greater proportion of transactions of this type than the figure you enter.

For example, if you consider 90% to be a high proportion of cash withdrawal transaction on a member’s savings account, you enter [90] here.

<2> Minimum Number of Transactions in the Members Account before the Proportion Test is Performed.

Accounts with very few transactions are likely to distort the results of the proportion test. For instance, if an account had only one transaction (a cash withdrawal) it would constitute 100% on the proportion test. To prevent accounts like this from being selected you may input a minimum number of transactions required before the test will be applied.

3.2 Sorting Order

This option allows you to specify the order in which the selected transactions are displayed on the printout. The default order is branch, operator, date, account number and then member name. Enter a 1 for highest priority and so on down to 5 at the lowest priority. You must number all 5 items.

Result

CAPS saves all the parameters you've just entered. CAPS will use these parameters as instructions on how to select member’s accounts and transactions for testing. So, if you specified a Department in the Profile parameters, then only those members matching this Department will be selected. If no Department number was specified in the Profile parameters, then all transactions are eligible for selection. Entering values in the Profile parameters filters the transaction using those values.

If you change the parameters in the profile you must run it again before they come into effect for the transactions selection.

4. TRANSACTIONS SELECTION

This makes CAPS select individual member’s accounts for transactions testing using the parameters you entered in the INPUT PARAMETERS menu option. CAPS will first prompt you for the ledgers to use:

As with previous ledger selection screens, if you require the tests on a particular ledger, type [Y], or type [N] for no test. An '*' in the input position of a ledger indicates that you have not input parameters for this ledger and thus you may not select it for auditing.

To proceed with the Transactions Selection press [Enter]. To exit the Transactions Selection type ‘EX’ and CAPS will return to the Transactions menu.

- if you are in Test Mode, CAPS prompts:

You are in test mode, do you want to start ‘Transaction Selection’ now?

Enter [Y] if you want CAPS to select a small set sample of members account transactions.

Enter [N] if you want CAPS to select all the members account transactions.

- if you answer [Y], CAPS prompts:

How many records do you want to process?

Enter the number of members accounts you want CAPS to use as a test sample.

CAPS displays messages to indicate its current activity. When complete it returns to the Transaction menu.

- if you answer [N], or if you are in Test Mode, CAPS prompts:

Program 'Transactions Selection' requires running overnight.

Confirm (Y/N)
Enter [Y] to add to overnight queue..
Enter [N] to cancel the request, and return to the Transactions menu.

Result

If you chose a test sample, CAPS immediately runs 'Transactions Selection'. If you chose a full live sample, CAPS sets up an instruction for 'Transactions Selection' to be run overnight under 'NIGHT AUDIT'. (See CAPS UTILITIES, section 2 - NIGHT AUDIT for more details).

The following message will report the progress of this audit:

Accounts: scanned=nnnn           processed=nnnn       

The results of running 'Transactions Selection' are stored in files ready for printing.

5. PRINT TRANSACTIONS SELECTION

 This prints out the details of the transactions and accounts that CAPS selected for testing.

Print Password

No-one can print this audit report unless they know the password. To stop unauthorised people using CAPS, an incorrect password may only be entered twice before CAPS automatically closes down.

CAPS will display messages to indicate current activity. When complete, it returns to the Transactions menu.
COLLECT YOUR PRINTOUTS IMMEDIATELY. DON'T LEAVE IT AT THE PRINTER !

Result

CAPS prints out the selected transactions, dollar value test exceptions and the proportion test exceptions. Please refer to the example at the end of the chapter.

6. JOURNAL AUDIT

Many journal and transfer entries only transfer amounts between accounts belonging to the same member. With this option, CAPS ignores these 'matched' journal or transfer entries and only identifies those 'unmatched' journal or transfer entry transactions for audit testing. For further explanation see 0.1.4 at the beginning of this chapter.

The Journal Audit parameter input screen looks like this:

 < 1> Period Start

Enter the first date of the period for which you want CAPS to identify unmatched journal and transfer entries.

< 2> Period End

Enter the last date of the period for which you want CAPS to identify unmatched journal and transfer entries.

The period can be as little as 1 day, for example, if you want CAPS to select only from the journal transactions made on 15th OCTOBER 1998, you enter [15/10/98] for both the Period Start and Period End.

It can be as much as all the journal and transfer transactions still on file. You do this by entering the date the Financial Institution last purged the transactions file as the Period Start and today's date as Period End.

< 3> Minimum Amount

If you aren't interested in checking journal and transfer transactions less than a certain amount, enter that amount here. Note that you can enter zero to get every unmatched journal transaction.

<4> Branch

If you only want to check unmatched journal and transfer entries within a particular branch, enter the branch here.

< 5> Matching Journal Code Pairs (this is a window field)

Tcode

Enter the transaction code of the journal code pair you wish to match.

Match Tcode

Enter the transaction code you wish to be matched with the transaction code you entered above.

NOTE: This is a one way test. If you wish to match 2 ways, i.e. 40 - 60 and 60 - 40, it is necessary to enter both these transaction code combinations in your parameters.

- if you are in Test Mode, CAPS prompts:

You are in Test Mode. Do you want to start ‘Transaction Journal Audit’ now?

Enter [Y] if you want CAPS to select a small test sample of unmatched journal and transfer transactions.

Enter [N] if you want CAPS to select from all journal and transfer transactions.

- if you answer [Y], CAPS prompts:

How many records do you want to process?

Enter the number of journal and transfer transactions you want CAPS to use as a test sample.

CAPS displays messages to let you know what it is doing. When finished it returns to the Transactions menu.

- if you answer [N] or if you are not in Test Mode, CAPS asks:

Program 'Journal Audit' requires running overnight.

Confirm (Y/N)
Enter [Y] to add to overnight queue.

Enter [N] to cancel the request, and return to the Transactions menu.

Result

If you chose a test sample, CAPS immediately runs 'Journal Audit'. If you chose a full live sample, CAPS sets up an instruction for 'Journal Audit' to be run overnight under 'NIGHT AUDIT'. (See CAPS UTILITIES, Section 2 - NIGHT AUDIT for more details).

The results of running 'Journal Audit' are stored in a file called 'Journal audit result'.

7. PRINT JOURNAL AUDIT

This menu option shows you summary information about the unmatched journal and transfer transactions CAPS identified when you used the JOURNAL AUDIT menu option. It then lets you decide how to choose a selection of unmatched journals and transfer transactions for your audit test.

 The Print Journal Audit parameter input screen looks like this:

1. Print Journal Audit Parameters

TCode

CAPS displays the transaction code for which it found unmatched journal transactions.

Number

CAPS displays the number of unmatched journal transactions found of this type.

Average Value

CAPS displays the average value of those unmatched journal transactions.

Method

You can select the method you wish to select unmatched journal transactions to print.

Enter [A] to print all unmatched journal transactions.

Enter [H] to select unmatched journal transactions with value higher than specified amount (see Min Amount below).

Enter [N] to instruct CAPS not to print any unmatched journal transactions of this type.

Enter [R] to instruct CAPS to randomly print some of the unmatched journal transactions of this type.

Min Amount

If you selected [H] as the Method, enter the minimum dollar value to print here. CAPS will print all unmatched journal transactions with value higher or equal this value.

If you selected other methods, CAPS will skip this field.

Sample Size

If you selected [R] as the Method, enter the number of unmatched journal transactions to print. CAPS will randomly select that many transactions to print.

If you selected other methods, CAPS will skip this field.

Print Password

No-one can print this audit report unless they know the password.

CAPS will display progress messages to indicate current activity. When finished it returns to the Transactions menu.

Collect your printouts immediately. Don't leave it at the printer!

Result

CAPS selects unmatched journal and transfer transactions from file 'journal audit result' and prints them out in a form suitable for audit checking. Please refer to the example at the end of the chapter.

8. CHEQUE CLEARANCE TEST

The Cheque Clearance Test goes through all selected accounts and checks cheque deposits and withdrawals in order to detect ‘kiting’ (See Introduction for explanation).

The Cheque Clearance parameter input screen looks like this:

1. Period Start

Input the start date of the period for which you want to check for cheque deposits.

2. Period End

Input the end date of the period for which you want to check for cheque deposits.

3. Days to Clear

Enter the number of days required to clear a cheque.

4. Maximum withdrawal percentage of cheque

Enter the maximum percentage of a cheque that may be withdrawn before this withdrawal amount will be considered for this test. If you enter 50, then only 50% of the cheque amount could be withdrawn before being considered against cheque deposits.

5. Maximum cheque deposit per withdrawal before test is done

Enter the amount of a cheque that may be deposited before this test will be applied. If you enter 500.00, then only cheques greater than $500 will be considered for this test.

 - If you are in Test Mode, CAPS asks:

You are in test mode, do you want to start ‘Cheque Test’ now?

Enter [Y] if you want CAPS to select a small test sample of accounts to check.

Enter [N] if you want CAPS to check all accounts.

 - If you answer [Y], CAPS prompts:

 Do you want to process individual accounts?

-If you answer [Y], CAPS prompts:

 Client to Process:

-If you answer [N] CAPS prompts:

Records to Process:

 How many records do you want to process

Enter the number of accounts you want CAPS to use as a test sample.

CAPS displays messages to let you know what it is doing. When finished it returns to the Transactions menu.

- if you answer [N] or if you are not in Test Mode, CAPS asks:

 Program 'Cheque Test’ requires running overnight. Confirm (Y/N)

Enter [Y] to add to overnight queue.

Enter [N] to cancel the request, and return to the Transactions menu.

Result

If you chose a test sample only, CAPS immediately runs 'Cheque Test’. If you chose a full live sample, CAPS sets up an instruction for 'Cheque Test’ to be run overnight under 'NIGHT AUDIT'. (See CAPS UTILITIES, Section 2 - NIGHT AUDIT for more details).

The accounts which have failed the Cheque Clearance Test, that is the accounts for which the uncleared cheque amount has not gone to zero, are stored on file for future printing.

9. PRINT CHEQUE CLEARANCE TEST

 Print Password

No-one can print this audit report unless they know the password. To stop unauthorised people 'fiddling' with CAPS, you only get two chances. Then CAPS automatically closes itself down.
CAPS displays messages to let you know what it is doing. When finished it returns to the Transactions menu.

Collect your printout immediately. Don't leave it at the printer.

Result

CAPS prints accounts which have failed the Cheque clearance Test from the file 'Cheque Test result'. Please refer to the example at the end of the chapter.

10. CLEAR TRANSACTION AUDIT FILES

This allows you to clear all files relating to the transactions audit.

CAPS prompts you with:

Are you sure you want to clear all ‘Transaction Audit’ files?

This is a warning to check to make sure you understand what is about to occur. If you answer [Y], CAPS immediately clears all transactions audit files. They cannot be recovered. If you answer [N] CAPS returns you to the Transactions menu without doing anything.

Result

CAPS will clear all the work files for the Transactions Module.