Automatic Teller MachinesÂ
More than two decades have elapsed since the introduction of ATMs by Banks in India. Initially, these were installed by larger co-operative Banks and the new private sector Banks. Today, ATM service is offered by even small co-operative Banks making such a service sin-qua-non of Banking in India. ATM houses one of the primary asset of the Bank – cash which has to be recognized by the auditor in his scope of work. While verification of cash in the ATM is one aspect, the operational efficacy should be responsive to the policy of the Bank and the standard operating procedures including the directives of the RBI.
Banking business deals with money and ATM is one part of its service. The auditor needs to view this service with the same critical eye as any manual cash management. Following aspects of internal control in relation to ATMs may be ascertained and evaluated by the auditor: