Automated banking machine with self auditing capabilities and system

Apparatus comprising:

• an automated banking machine including:
• a canister, the canister including a storage area therein holding a first number of sheets of a first type;
• a programmable memory on the canister, wherein the memory holds data representative of the first number of sheets and the first type of sheets held in the storage area;
• a pick and insert mechanism in operative connection with the canister, wherein the pick and insert mechanism is operative to selectively either remove sheets from the storage area or to insert sheets into the storage area;
• a sheet transport in the machine, wherein the sheet transport is operative to move sheets along a sheet path and wherein the sheet path is in operative connection with the pick and insert mechanism;
• an identification device adjacent the sheet path, wherein the identification device is operative to sense and identify sheets in the sheet path;
• a control system in operative connection with the canister memory, the pick and insert mechanism, the sheet transport and the identification device, wherein the control system is operative to remove each of the sheets from the storage area using the pick and insert mechanism, to move the sheets in the transport to the identification device, to determine with the identification device a second number of sheets removed from the storage area and a second type for each sheet removed from the storage area, and wherein the control system is operative to compare data representative of the first number and the second number, and for each sheet to compare data representative of the first type and the second type, whereby the information stored in the memory concerning the sheets is compared to data concerning the actual sheets which were stored in the storage area.