Here's a comprehensive deep dive into the Retail Teller Module Audit Program in Oracle

FLEXCUBE, incorporating detailed testing procedures, sampling methodologies, and

control validation approaches.

Deep Dive: Audit Program for Retail Teller Module (Oracle

FLEXCUBE)
1. Access Control Audit

Objectives:

 Ensure user access to the Teller Module follows the principle of least privilege.
 Validate segregation of duties (SoD) to prevent fraud.
 Confirm robust authentication mechanisms and monitoring of unauthorized access
attempts.

Audit Procedures:

✅ User Access Management Review

 Obtain a list of users with access to the Retail Teller Module.

 Compare assigned roles with approved access matrices.
 Check for excessive or unauthorized access rights.
 Verify that access rights are removed immediately upon employee
resignation/termination.
 Review user access logs for any unusual activity.

✅ Segregation of Duties (SoD) Testing

 Identify conflicting roles (e.g., teller and supervisor roles assigned to the same user).
 Use rule-based SoD analysis to detect policy violations.
 Test if users can initiate and approve the same transaction.

✅ Authentication Controls Testing

 Review password policies (length, complexity, expiration rules).

 Check if Multi-Factor Authentication (MFA) is enabled for critical transactions.
 Test lockout mechanisms for failed login attempts.

✅ Review of Inactive & Orphan Accounts

 Identify user accounts that have been inactive for 90+ days.
 Verify that accounts of terminated employees are deactivated.
  Check if orphan accounts (without an owner) exist and assess their activity logs.

✅ Access Logging & Monitoring Review

 Verify if login attempts (successful/failed) are logged.

 Test if alerts are generated for unauthorized access attempts.
 Check for logs showing access outside of business hours.

Sampling Methodology:

 Random sampling: Select users with active teller roles for access review.
 Risk-based sampling: Focus on users with admin/supervisor privileges.

2. Transaction Processing Audit

Objectives:

 Ensure transaction integrity, completeness, and accuracy.

 Detect fraudulent or unauthorized transactions.
 Validate real-time transaction monitoring mechanisms.

Audit Procedures:

✅ Transaction Log Review

 Extract teller transaction logs and verify their completeness.

 Compare transaction logs with core banking system (CBS) records for reconciliation.
 Identify any missing transactions.

✅ Duplicate Transaction Detection

 Use data analytics to check for identical transactions (same amount, same account,
processed within short intervals).
 Investigate flagged transactions for anomalies.

✅ Authorization and Override Testing

 Identify transactions overridden by supervisors.

 Verify if override justifications are recorded and reviewed.
 Ensure that high-value transactions require dual approvals.

✅ Reversal and Refund Testing

 Review cash withdrawals and deposit reversals.

  Check for patterns of frequent reversals by specific users.
 Validate if reversal justifications are well-documented.

✅ Teller Cash Balancing and Reconciliation

 Test end-of-day balancing reports.

 Compare teller cash balances with system-generated totals.
 Investigate discrepancies between cash in hand vs. system balance.

Sampling Methodology:

 Stratified sampling: Focus on high-value, frequently reversed, or suspicious

transactions.
 Time-based sampling: Analyze transactions across peak and off-peak hours.

3. Compliance and Regulatory Audit

Objectives:

 Validate compliance with KYC/AML and regulatory reporting.

 Identify high-risk transactions and assess compliance with fraud detection policies.
 Ensure transactions are screened against sanctions lists.

Audit Procedures:

✅ KYC/AML Compliance Testing

 Review teller transactions to ensure KYC details are captured before processing.
 Check compliance with AML thresholds for large cash transactions.
 Test if AML alerts are generated for unusual teller transactions.

✅ Sanctions List Screening

 Verify if teller transactions involving foreign remittances are screened.

 Assess if blocked transactions are reported to regulators.

✅ Regulatory Reporting Review

 Check if mandatory Cash Transaction Reports (CTR) and Suspicious Transaction

Reports (STR) are generated and submitted timely.
 Ensure that large-value transactions trigger appropriate compliance checks.

✅ Policy Adherence Testing

  Verify if tellers are adhering to transaction limits set by the bank.
 Check if exceptions to limits are justified and approved.

Sampling Methodology:

 Focus on high-value transactions (above reporting threshold).

 Randomly select KYC records to check for missing or incomplete details.

4. Security Audit

Objectives:

 Ensure robust cybersecurity controls to prevent fraud and unauthorized access.

 Validate system configurations to mitigate security threats.
 Check compliance with data protection regulations.

Audit Procedures:

✅ Patch Management Review

 Verify if FLEXCUBE security patches are applied timely.

 Assess vulnerability scan reports for unpatched risks.

✅ Encryption & Data Protection Testing

 Confirm encryption of sensitive data (customer PII, financial transactions).

 Test if data masking is implemented for sensitive fields.

✅ Cybersecurity Controls Testing

 Check if Intrusion Detection System (IDS) logs are reviewed.

 Verify if firewalls and antivirus solutions are up to date.
 Conduct a penetration test (if authorized) on the Retail Teller Module.

✅ User Activity Logging & Monitoring

 Review logs for privileged user actions.

 Check if real-time fraud detection tools are deployed.

Sampling Methodology:

 Review cybersecurity logs for incidents in the past 6 months.

 Randomly select 10–15 transactions to verify encryption compliance.
5. Logging and Monitoring Audit

Objectives:

 Validate the effectiveness of audit trails.

 Ensure logging mechanisms are in place to detect fraud.
 Assess the efficiency of alerting mechanisms.

Audit Procedures:

✅ Audit Trail Completeness Testing

 Check if every teller transaction is logged with timestamp, user ID, and transaction
details.
 Test if logs capture unauthorized access attempts.

✅ Real-Time Monitoring & Alert Testing

 Verify if alerts are triggered for suspicious activities.

 Test if logs provide sufficient details for forensic analysis.

✅ Log Retention Policy Review

 Confirm that transaction logs are stored for the minimum required period (as per
regulatory requirements).
 Check backup logs to ensure availability in case of system failures.

Sampling Methodology:

 Review system logs for a 6-month period.

 Focus on flagged transactions with alerts.

6. System Availability and Performance Audit

Objectives:

 Ensure high availability of the Retail Teller Module.

 Validate disaster recovery (DR) readiness.
 Identify performance issues affecting teller operations.

Audit Procedures:
✅ System Uptime & Downtime Review

 Analyze system logs for downtime incidents.

 Check incident response records for resolution times.

✅ Disaster Recovery (DR) Testing

 Review DR test reports and recovery time objectives (RTO).

 Test system failover mechanisms.

✅ Performance Monitoring

 Assess system response times for teller transactions.

 Identify performance bottlenecks causing delays.

Sampling Methodology:

 Review past 12 months of uptime records.

 Conduct stress testing (if permitted).

Final Deliverables:

✅ Detailed Audit Findings & Risk Ratings

✅ Remediation Action Plan
✅ Control Improvement Recommendations
✅ Executive Summary for Management

This deep-dive audit program ensures end-to-end coverage of risks associated with the Retail
Teller Module in Oracle FLEXCUBE. Do you need specific test scripts or queries for
FLEXCUBE logs? 🚀

Enhanced Deep-Dive Audit Program for Retail Teller Module in Oracle

FLEXCUBE

This version includes additional forensic analysis, real-time anomaly detection, control
validation techniques, and automation tools for enhanced risk identification and mitigation.

7. Advanced Forensic Analysis for Fraud Detection

Objectives:

 Identify fraudulent transactions using AI-based anomaly detection.

 Detect collusion among tellers and supervisors.
 Analyze transaction trends to spot irregularities.

Audit Procedures:

✅ Forensic Data Analytics on Teller Transactions

 Use Benford’s Law analysis to detect manipulated transaction values.

 Perform trend analysis of transactions over time to detect spikes.
 Identify linked accounts processing repeated cash withdrawals/deposits.

✅ Collusion Detection & Behavioral Analysis

 Identify transactions where the same teller and supervisor frequently override
controls.
 Analyze logins for tellers logging in from unusual locations or outside business hours.
 Detect reversal patterns where a teller reverses transactions for the same set of
customers.

✅ Machine Learning-Based Fraud Detection (if AI tools are integrated)

 Run anomaly detection algorithms on transaction volume, transaction frequency, and

teller behavior.
 Detect suspicious fund movements between linked accounts.

Sampling Methodology:

 Pattern-based sampling: Focus on transactions matching known fraud patterns.

 Cluster-based sampling: Analyze transactions by teller groups to find high-risk patterns.

8. Automated Transaction Integrity Testing

Objectives:

 Automate transaction reconciliation and duplicate detection.

 Identify inconsistencies between teller transactions and back-office records.

Audit Procedures:

✅ Automated Reconciliation of Teller Transactions

  Match teller transactions against core banking system (CBS) records.
 Use data analytics tools (ACL, IDEA, SQL queries) to identify unmatched
transactions.

✅ Automated Duplicate Transaction Detection

 Use scripts to detect duplicate transactions based on date, amount, account number,
and teller ID.
 Cross-check duplicate transactions with audit trail logs to confirm legitimacy.

✅ Cash Balancing Automation

 Compare teller’s opening and closing cash balances with system-calculated values.
 Identify cases where cash shortages or overages exceed threshold limits.

Sampling Methodology:

 Full population testing using automation for reconciliation.

 Threshold-based sampling for high-value mismatches.

9. Teller Performance & Productivity Analysis

Objectives:

 Identify tellers processing unusually high volumes of transactions.

 Detect performance inefficiencies impacting customer service.

Audit Procedures:

✅ Teller Workload Analysis

 Compare number of transactions processed per teller against the branch average.
 Identify tellers with significantly higher/lower transaction volume than peers.

✅ Customer Wait Time & Transaction Processing Speed

 Analyze timestamps in teller logs to determine average time taken per transaction.
 Detect performance bottlenecks causing delays in processing.

✅ High-Risk Teller Identification

 Identify tellers processing high volumes of manual overrides or reversals.

 Flag tellers with high frequency of large cash deposits/withdrawals.
Sampling Methodology:

 Top 10% outlier analysis (tellers processing significantly more transactions than
average).
 Time-based sampling (transactions during peak vs. off-peak hours).

10. Physical & Environmental Security Audit

Objectives:

 Ensure physical security controls prevent teller fraud and data breaches.
 Validate compliance with branch security policies.

Audit Procedures:

✅ CCTV & Teller Transaction Matching

 Cross-check teller transactions with CCTV footage for suspicious behavior.

 Ensure that high-value cash transactions are physically verified.

✅ Cash Handling Controls Testing

 Observe cash handover process at the teller counter.

 Verify that cash counting machines are calibrated to prevent discrepancies.

✅ Access Controls for Teller Counters

 Verify if teller counters are restricted to authorized personnel only.

 Ensure that teller workstations auto-lock when idle.

Sampling Methodology:

 Incident-based sampling: Review footage for days with reported cash discrepancies.
 Random surprise inspections to validate cash handling protocols.

11. Business Continuity & Disaster Recovery (DR) Testing

Objectives:

 Ensure system resilience against failures and cyberattacks.

 Validate failover mechanisms for teller operations.
Audit Procedures:

✅ Failover & Backup Testing

 Simulate a system outage to test teller module failover capabilities.

 Verify that tellers can switch to offline processing mode during downtime.

✅ DRP (Disaster Recovery Plan) Testing

 Review if teller transactions are backed up in real-time.

 Validate that data recovery from backups is successful.

✅ Cyber Resilience Testing

 Test if cyberattack scenarios (ransomware, DDoS) impact teller availability.

 Assess system response times after system restore from DR site.

Sampling Methodology:

 Event-driven sampling (focus on past system failure events).

 Quarterly DR test reviews.

12. Teller System Configuration & Parameter Review

Objectives:

 Validate that system configurations align with bank policies.

 Ensure that parameter settings prevent fraud and errors.

Audit Procedures:

✅ Review of Transaction Limits & Thresholds

 Check teller transaction limits against bank-approved policies.

 Verify whether unauthorized users can change limits.

✅ Automated Teller Machine (ATM) & Retail Teller Integration Testing

 Ensure ATM cash deposits and teller transactions sync in real-time.

 Identify any discrepancies between ATM and branch cash balances.

✅ Exception Handling & Error Message Analysis

  Review system logs for frequent error messages.
 Assess how system handles failed transactions (auto-retries, refunds).

Sampling Methodology:

 Configuration-based sampling: Focus on parameter settings affecting fraud prevention.

 Exception-based sampling: Analyze error logs with the highest failure rate.

Final Deliverables & Reporting Enhancements

1. Risk-Weighted Audit Findings Report

✅ Categorize risks as High, Medium, Low with potential financial impact.

✅ Provide risk heatmaps to highlight high-risk branches or tellers.
✅ Include transaction analytics dashboards for fraud detection.

2. Automation & AI-Driven Recommendations

✅ Suggest AI-driven fraud detection tools for proactive monitoring.

✅ Implement real-time transaction monitoring alerts.
✅ Enhance automated teller balancing with RPA (Robotic Process Automation).

3. Management Action Plan & Remediation Roadmap

✅ Prioritize remediation efforts based on risk severity.

✅ Define clear action owners & deadlines.
✅ Follow up with periodic post-audit validations.

🚀 Why This Enhanced Audit Program?

✅ Covers every risk angle – from access control to AI-driven fraud detection.
✅ Leverages automation & forensic tools for deeper insights.
✅ Aligns with international audit standards (COSO, COBIT, ISO 27001, PCI DSS).