Consigned Items and Other Customer Services

Procedures

General Procedures

These procedures are intended to determine the adequacy of the bank’s policies, procedures, and internal controls as they relate to consigned items and other customer services. The extent of consigned items and other customer services testing and procedures performed should be based upon the examiner’s assessment of risk. This assessment should include consideration of work performed by internal/external auditors and other internal compliance review units, formalized policies and procedures, and the effectiveness of internal controls.

Objective: Determine the scope of the examination of consigned items and other customer services.

1.

Review the supervisory strategy in the OCC database and Scope Memorandum issued by the bank examiner-in-charge (EIC).

2.

Review previous consigned items and other customer services examination findings. Determine if appropriate corrective action has been taken to address any previously identified problems. If not, determine why.

3.

Obtain from the examiner assigned internal/external audit, a copy of any significant deficiencies for consigned items and other customer services. If internal/external audit is not part of the overall scope of the examination, review thework performed by internal/external auditors in this area and obtain a list of any deficiencies noted in their latest review. Determine whether management has taken appropriate corrective action. If not, determine why.

4.

Obtain and review:

  • A listing of consigned items and other control accounts.

  • Remittance records for unissued traveler’s checks, food stamps, and U.S. savings bonds, if applicable.

5.

Review consigned items and other customer services operating policies or practices, paying particular attention to any material changes since the previous examination.

6.

Review internal bank reports on the consigned items and other customer services department. Determine any material changes in types of products, volumes, and changes in market focus.

7.

Based on performance of the previous steps, and discussions with the EIC, determine the scope of the examination and its objectives.

NOTE:

Select from among the following examination procedures, as necessary, to determine the level of risk and test the risk management process for consigned items and other customer services.

Previous: Accounting Next: Quantity of Risk