Final answer:
When auditing an interbank transfer schedule, an auditor checks transfer amounts, dates, authorizations, transaction purposes, and reconciliations to ensure accuracy and compliance.
Step-by-step explanation:
When auditing an interbank transfer schedule, an auditor should focus on a few main aspects to ensure accurate and compliant transactions. The items typically audited include:
- Verification of the transfer amounts to ensure that the numbers listed on the schedule are correct and match the amounts actually transferred.
- Confirmation of the timing of the transfers, checking that the dates listed are accurate and comply with the relevant reporting periods.
- Examining the authorizing signatures and approvals to ensure all transfers have been properly authorized in accordance with internal controls and policies.
- Assessing the transaction purpose to ensure that each transfer is legitimate and for a business-related need.
- Reviewing the bank reconciliation statements to ensure transfers are accurately reflected and reconciled in both the sending and receiving accounts.
These key points of focus help to detect any discrepancies, errors, or potential fraudulent activity in the interbank transfer process.