Banking and Finance > Investments

The following tests apply to accounts intended for interest-bearing deposits from customers.

Analysis

  • Stratify balances by size
  • Group accounts by product type
  • Age investment portfolio to analyse interest rate repricing risk
  • Stratify portfolio by size
  • Summarise portfolio by type, issuer, interest rate, maturity, etc.
  • Create charts of investment portfolio information

Calculations

  • Cast (or total) accrued interest
  • Prove interest capitalisation, charges
  • Re-perform individual interest calculation

Exception Tests

  • Extract unusual interest rates or amounts.
  • Identify/Summarise dormant accounts and identify transactions thereon.
  • Identify negative balances
  • Identify accounts with statements suppressed
  • Identify records that are not complete or up-to-date
  • Test for money laundering

Many of the previous tests are applicable to current or checking accounts. There are also a number of tests that can be carried out when searching for money laundering.

Other Applicable Tests

  • Identify forward dated transactions
  • Provide totals of forward dated transactions
  • Identify overdue maturities
  • Identify customers over their overdraft limit or customers with expired limits
  • Identify dormant accounts and transactions thereon
  • Re-perform currency conversions
  • Provide details of currency exposure
  • Test for cut-off