Chapter 9 – Incompatible duties

In this module, CAPS searches for incompatible duties over branches, operators and transaction codes.

0. Introduction

0.1 Description of Audit Tests

0.2 Suggested sequence and frequency of using the module

1. Duties definition by transaction code

2. Duties Definition by operator

3. Print Duties Table

4. Incompatible Duties Audit

5. Print Incompatible Duties Audit

6. Clear Incompatible Duties Audit Files

0. INTRODUCTION

0.1 Description of Audit Tests

Proper segregation of duties amongst staff is an important control in any Financial Institution. It has always been difficult for the auditor to scrutinise all transactions and check they were processed by staff at appropriate levels. With CAPS you can now define which transaction codes should be processed by each operator and identify transactions processed outside of these defined boundaries.

Duties Table
To perform duty tests, CAPS builds up a table of 'who can do what'. CAPS lets you define this table either by operator or by transaction code. CAPS then produces a printed matrix of operators and valid transaction codes.

0.2 Suggested sequence and frequency of using the module

The Incompatible Duties audit should be run at the beginning of each visit to the client to highlight transactions for further scrutiny. Internal auditors may want to run it once a month to follow up exceptions on a regular basis.

The sequence is as follows:

Step Description
1 Use menu option 1-Duties Definition by Transaction Code to define which operators can process a particular transaction code.
- OR -
Use menu option 2-Duties Definition by Operator to define which transaction codes can be processed by an operator. This step is the converse of the above and is simply provided in case it is more convenient to enter the duties in this manner.
2 Print the result of the duties definition using menu option 3 - Print Duties Table. Examine the table to ensure all duties have been properly defined.
3 Use menu option 4-Incompatible Duties Audit to search the transactions on file for those with incompatible duties.
4 Print the results of the Incompatible Duties Audit using menu option 5 - Print Incompatible Duties Audit
5 Clear off the files for the next audit using menu option 6 - Clear Incompatible Duties Audit Files.

1. DUTIES DEFINITION BY TRANSACTION CODE

This menu option lets you input the operator codes for each transaction code that can be used. Alternatively you can enter the operators that cannot use the transaction code in question. Even though you may enter codes in the negative, CAPS will convert these to the affirmative, to be consistent with the logic used in the audit program.

When you update this table it automatically cross matches with and updates the 'Duties Definition by Operator' table.

Transaction code
Enter a valid transaction code. Press [Enter] only, when you want to end the input process.

Description
CAPS will display the description of the transaction code entered.

<1> The operators can use this transaction?
Enter 'Y' to indicate that the following operators are those that can use this transaction code. It will be assumed that all other transaction codes are not useable.

Enter 'N' to indicate that the following operators are those that cannot use this transaction code.

<2> Operators that can/cannot use this transaction code (window)

Operator
Enter the operator code for each operator who is supposed to be using (or not using) this transaction code.

Name
As each operator code is entered CAPS displays their name on file so you can verify the operator code. If you enter a code that does not exist, you will be notified.

Result
CAPS builds up a table of which transactions codes that are allowed to be used by each operator.

2. DUTIES DEFINITION BY OPERATOR

This menu option lets you input transaction codes that are allowed to be used by the operator in question. Alternatively you can enter the transaction codes that cannot be used by the operator in question. When you leave this screen it automatically cross matches with and updates the 'Duties Definition by Transaction Code' table.

Operator code
Enter a valid operator code. Press RETURN only, when you want to end the input process.

Operator Name
CAPS will display the name for the operator code entered.

<1> The transactions can be used by this operator?
Enter 'Y' to indicate that the following transaction codes are those that can be used this operator. It will be assumed that all other transaction codes are not useable.

Enter 'N' to indicate that the following transaction codes are those that cannot be used by this operator.

<2> Transaction Codes which can/cannot be used by this operator.

TCode
Enter the transaction codes that can be used by this operator.

Description
As each transaction code is entered CAPS displays its description so you can verify.

Result

CAPS adds to the table of transactions codes which should be in use by each operator.

3. PRINT DUTIES TABLE

This menu option lets you print the table of operators and allowed transaction codes.

CAPS allows you to specify a combination of operators and transactions or all of them to include in the duties table.

<1> Operators (window)
Enter all the operators you wish to print. Leave this field blank to print all operators.

<2> Transaction Codes (window)
Enter all the transaction codes you wish to print. Leave this field blank to print all transaction codes.

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

The Incompatible Duties table will be printed out. Please refer to the example at the end of the chapter.

4. INCOMPATIBLE DUTIES AUDIT

This menu option instructs CAPS to search for transactions completed by staff with incompatible duties.

This is a powerful audit tool. You can quickly set up a test to audit all codes and branches, or you can easily focus on one branch, operator, or transaction code.

<1> Period Start
Enter the date for the start of the audit period. Use the following format (dd/mm/yy)

For instance, enter 01/09/98 to start the audit from 1 September 1998.

<2> Period End
Enter the date for the end of the audit period. Enter in the following format (dd/mm/yy)

For instance, enter 31/12/98 to finish the audit period on the 31 December 1998.

<3> Major Sorting Method
Enter an [O] to sort the report by operator order, or a [T] to sort the report by transaction code.

<4> Secondary Sorting Method
Enter [A] to sort the report in ascending order or [D] to sort the report in descending order within the major sorting method.

<5> Ledger (window)
Enter the ledgers to audit.

Enter [L] to select the Loans ledger, [S] to select the Savings ledger, and [I] to select the Investments ledger.

If you do not specify any ledgers CAPS will assume you want to audit all ledgers.

<6> TCode (window)
Enter the transaction codes to audit.

Enter all the transactions codes that you want to be included in the audit.

If you do not specify any transaction codes, CAPS will assume you want to audit all transactions codes.

<7> Operator (window)
Enter the operator codes to audit.

Enter all the operator codes that you want to be included in the audit.

If you do not specify any operator codes, CAPS will assume you want to audit all operator codes.

Important: If you leave this field blank, indicating all operators, and you have neglected to input definitions for all operators (or included all operators in the transaction code definitions) there will be excessive exceptions and your audit will run very slow.

<8> Branch (window)
Enter the branches to audit.

Enter all the branches that you want to be included in the audit.

If you do not specify any branches, CAPS will assume you want to audit all branches.

- if you are in Test Mode, CAPS prompts:

You are in Test Mode, do you want to start Incompatible Duties Audit now. (Y/N)
Enter [Y] if you want to do a quick test run by auditing only a small number of transactions.

Enter [N] if you don't want a test run, but want to audit all transactions for the parameters input.

- if you answer [Y], CAPS prompts:

How many records do you want to process?
Enter the number of transactions you wish CAPS to use as a test sample.

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

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

Do you want 'Incompatible Duties Audit' submitted for overnight running?

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

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

Result

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

Using the incompatible duties table which has been built, CAPS checks the transaction and operator codes on file and reports any exceptions. The results of running 'Incompatible Duties Audit' are stored on files.

5. PRINT INCOMPATIBLE DUTIES AUDIT

This lets you print the results of the Incompatible Duties audit. CAPS first prompts you for some parameters :

<1> Minimum Amount
Enter the minimum amount to report.

For example, If you entered $10.00, CAPS would only report Incompatible Duties that involved transactions of more than $10.00.

<2> Page Breaks
Indicate if you require page breaks between each operator or transaction code (Depending on which report you request) in the report. Enter [N] if you want to allow more than one Operator/Transaction per page, else enter [Y] for separate pages.

Print Password
Enter your print password.

YOU MUST COLLECT THE PRINT OUT IMMEDIATELY !

DO NOT LEAVE AT THE PRINTER !

Result

CAPS uses the information in the audit file to produce the report. Please refer to the example at the end of the chapter.

6. CLEAR INCOMPATIBLE DUTIES AUDIT FILES

This allows you clear all files relating to the Incompatible Duties audit.

CAPS will prompt:

Are you sure you want to clear all transaction audit files?
This is just a warning and a check to make sure you really want to clear the information from the audit files. If you answer [Y], CAPS immediately clears the Incompatible Duties work files which were created in menu option 4. They cannot be recovered. If you answer [N], CAPS returns you to the Incompatible Duties menu without clearing anything.

Result

The work files are irretrievably cleared to free space on the Financial Institution's computer system.