Audit

Focus Technology Group provides unique and powerful analysis and reporting tools necessary in today’s banking environment. Regulator and management expectations for identifying and controlling risk are at an all time high.  FTG offers the best audit data analytics software on the market.  Using these products as the backbone of a Continuous Auditing and Continuous Monitoring program will head off costly operational issues, detect fraud in its earlier stages and provides greater audit coverage without increasing audit resources.

Our audit products perform many important audit tests such as:

  • Loan and deposit interest accrual and balance recalculations
  • Transaction and maintenance activity monitoring
  • Statistical sampling and confirmation generation
  • Charged-off loan and recovery analysis
  • Delinquent loan recalculations
  • Loan separation of duties analysis

A small sample of what FTG customers have detected with our solutions include:

  • $50,000 fraud found through detection of internal kite hidden through back-dating of deposit transactions
  • Over $1,000,000 fraud uncovered through unapplied balance field used as source of funds
  • Almost $1,000,000 fraud uncovered through detection of loan lapping scheme
  • Over $300,000 in annual loan interest income recovered through transaction analytics
  • Over $500,000 loan fraud uncovered through independent workups of loan principal balances

BancAudit Pro

BANCAUDIT PRO’S REACH IS VIRTUALLY UNLIMITED!

The BancAudit Pro system provides seamless access across multiple data sets as it is mapped to over 2,000 data fields found in the Account, CIF, Collateral, Common, Transaction, Maintenance and Teller files. It installs in 15 minutes and is ready to go!

Turn months of potentIal work into days as the BancAudit Pro system recalculates loan and deposit accrual balances, identifies overrides to processing parameters, monitors activity to high risk accounts and much more.  Address the red flags of fraud scenarios such as loan rollovers, unauthorized loan extensions, loan lapping schemes and inactive and dormant CD manipulations found by BancAudit Pro.  Monitor employees with the BancAudit Pro employee inquiries and employee account activity module.

The BancAudit Pro system provides the powerful analysis and reporting tools necessary in today’s banking environment. Regulator and management expectations for identifying and controlling risk are at an all time high.  BancAudit Pro users can be more confident of exceeding these expectations.

BANCAUDIT PRO BENEFITS

The BancAudit Pro system is an undeniable value that brings the following benefits to the table:

  • Comply with SAS 99 requirements
  • Protection of your organization’s reputation and bottom line
  • Intuitive and effective approach
  • High ROI in a short period of time
  • Efficiency from the use of a CAAT
  • Comprehensive view of transactional, account and customer data
  • Variance analysis of account balances

Pre-Programmed Routines: Over 150 different types of pre-defined and programmed exception analysis, fraud detection,and audit routines. Each can be launched in minutes.

Suspicious Employee Inquiry Monitor: Detects out-of-pattern and suspicious employee account inquiries representative of identity theft.

Suspicious CIF Maintenance Changes: Monitors CIF maintenance fields for suspicious changes representative of identity theft, statement re-directions and other types of fraud.

Suspicious Deposit and Loan Maintenance Changes: All data fields within Deposit and Loan database files are monitored for unusual and suspicious activity. Time span analysis and database build is provided. For example, alerts examiner to loans extended through maintenance with no changes to extension counts, or alerts examiner to fraudulent CD interest distributions

Transaction Monitoring and Auditing: All financial transactions within your transaction history files are monitored for unusual and suspicious activity. Time span analysis and database build for inquiry is provided. For example, tracks unusual ‘Force Pay’ transactions and frequent ‘Principal Adjustments’.

Confirmations: Hundreds of field attribute choices and comprehensive sampling techniques support confirmations. Auditors can choose forms and create unlimited messages.

Customized Reporting: Provides thousands of field attributes, detailed reporting, summary reporting, math options, sorting, grouping, subtotaling, averaging and more. Access across multiple databases is seamless.

General Ledger Analysis: Provides customized reporting, transaction analysis and variance analysis to support SOX compliance. Easily search out and chart unusual and suspicious transaction activity.

IDEA® Account Activity Manager

The IDEA Account Activity App was jointly designed by FTG and CaseWare to identify fraud, errors and omissions and money laundering related to deposit and time accounts.  Eight robust tests are provided:

Deposit Account Takeover

Identifies and reports inactive deposit accounts with maintenance changes to customer file data occurring in the last 90 days that are followed by transaction activity.  Two specific inactive account scenarios are addressed:

  • Accounts open under six months with no activity since opening date
  • Accounts with no activity for six months

Dormant Account Manager

Identifies and reports accounts with: 1) invalid account type codes that may prevent accounts from being classified as dormant; and 2) dormant status conflicts where the dormant status is not consistent with the number of days the accounts has been inactive.

Inactive Accounts Manager

Identifies and reports transactions to inacitve deposit transaction accounts during a “pre-dormancy” window and reports the ransaction details.  The “pre-dormancy” window is 75 days for chequing accounts and 150 days for non-chequing accounts”.

Certificate of Deposit Early Withdrawals

Identifies and reports Certificate of Deposit  (CD) withdrawals equal to or greater than a “user-selected” percentage of the original balance.   A Risk Score based on the remaining CD balance and remaining CD term is calculated and reported for each CD account that had a qualifying withdrawal.

Maintenance Transactions

Identifies and reports all maintenance activity to deposit accounts.  Both data prior to the change and after the change are reported.

Service charge manager

Performs the following validations and reports exceptions: invalid service charge data; service charges to protected accounts; service charge plan not defined; service charge waivers; and service charge overrides.

Internal and Employee Account Transaction Monitor

Identifies Employee and Internal accounts   through the analysis of: 1) employee account codes and 2) external file of employee tax identification numbers, names and addresses.  Reports transactions individually and in summary to identify abnormal activity.  This test also detects employee and internal accounts that are not coded and reports transactions to these accounts.

New Account Money Laundering

Identifies and reports new accounts with large spikes in the number and dollar amount of deposits between two periods of time: the first two months after the account opening date, and months three through five after the account opening date.

IDEA® Loan Examiner

The IDEA Loan Examiner App was jointly designed by FTG and CaseWare to identify fraud, errors and omissions and compliance violations to loan accounts.  Eight robust tests are provided:

Underperforming Loans

Identifies and reports loans that are currently overdue for at least 60 days and were opened within the last six months.  All loan transactions since account opening are also reported for each overdue loan .

Loan Transaction Monitor

Identifies and reports all “user-selected” transaction types for which a user wants to generate reports.  All transactions that are back-dated more than four days are automatically selected by this test.

Loan Maintenance Monitor

Identifies and reports all maintenance activities on loans.  Both data prior to each change and after each change are reported.

Loan Payment Extensions

Recalculates the number of months each loan has been extended and reports loans that fall under either of the following scenarios: 1) loans with excessive extensions; and 2) unauthorized extensions. Extended loans are also summarized and reported by loan officer.

Loan Repayment Analysis

Analyzes open and closed loans for “rollover” loans that appear to have been made to a borrower to payoff loans to the same borrower.  These loans are reported by borrower.

Loan Charge-off and Recovery Monitor

Identifies and reports charged-off loans and loan recoveries by loan officer.  Also reports each loan officer’s total loan portfolio as a baseline to assist in identifying  trends that may be indicative of loan fraud, recovery fraud, poor underwriting, non-performance, etc.

Loan Delinquency Manipulation

Recalculates days, payments and amounts delinquent for each loan.  It then reports any difference between the recalculated delinquent amount due and the system delinquent amount due.

Lending Separation of Duties

First identifies all loan transactions posted by loan officers and then analyzes all loans for the approving officers and reports any officers who posted transactions to loans they approved.  The test identifies the following two scenarios:

  • Disbursement control gaps – Loan officer posts a loan disbursement to a loan account approved bythe same officer
  • Payment control gaps – Loan officer posts a loan payment to a loan account approved by the same officer