Review internal bank reports on the consigned items and other customer services department. Identify and determine the significance of any material changes in volume, types of products offered or changes in market focus.

Scan control accounts for any significant fluctuations, and determine the cause of fluctuations.

Determine the level of compliance with applicable laws, rulings and regulations.

• 12 USC 25a — Prohibition on handling of lottery tickets

• 17 CFR 450 — Safekeeping of U.S. government securities

Compare bank control records to remittance records for unissued traveler’s checks, food stamps, and U.S. savings bonds.

Verify the accuracy of bank records for consigned items and other customer services. Select from among the following procedures, as necessary, to determine the level of risk for each consigned item and other customer services area.

Safe Deposit Boxes

Compare the number of rental contracts in force to the total number of safe deposit boxes. Reconcile any differences.

• In the presence of a bank official, inspect and reconcile the following to inventory control records maintained by the bank:

Keys for unrented boxes.

Extra locks and keys kept for replacement purposes.

Contents of any drilled safe deposit boxes.

Determine the reasonableness of documentation associated with any drilled. Boxes may be drilled for nonpayment of rent; upon written request of lessee; and for a special administrator, with proper legal authority, in search of a will.

Safekeeping and Custody Accounts

Obtain the safekeeping register, verify that receipt forms are issued in numerical sequence and that all numbers are accounted for, and check unused forms for the next number to be issued. Also, test the completeness of the numerical sequence of unissued forms.

• Select a sample of items and test for the following. Resolve any differences.

Examine the contract and check for the customer signature for each account selected.

In the presence of a bank official, examine the items selected, agreeing the vault contents to the receipt copies on hand.

Review transactions, and determine compliance with written contractual authorizations.

If any items selected for examination are held in safekeeping elsewhere, confirm their existence by direct communication.

If any items selected for examination appear altered or there appears to be a discrepancy between the receipt and what is held in the vault, confirm the items with the customers.

• Select a sample of closed accounts (released items) and test for the following. Resolve any differences.

Examine the register form and the customer’s release.

Compare the customer’s signature on the release to the other signature copy on file.

If any of the items appear altered or unusual, confirm the correctness of the information with owners.

Collection Items

If memorandum control accounts are maintained, prepare or request that the bank prepare, under your supervision, a trial balance of each account controlled. Resolve any differences.

In the case of unusual, altered, or longstanding items, prepare and mail confirmation requests to customers.

• Select a sample of representative items and:

Review all supporting documents

Satisfy yourself about the authenticity of each item selected, and trace and clear each item through final payment including the posting of the appropriate credit to the customer.

Test postings of collections on detailed records to determine that disbursement of funds collected is in accordance with customers’ instructions.

Consigned Items

In the presence of a bank official, inventory unissued and spoiled items on hand, and agree totals to memorandum controls maintained at each issuing location.

Compare and reconcile memorandum records to the latest consignor statement.

Prepare and mail to consignor a confirmation request on items inventoried.

Follow up and clear satisfactorily any confirmation exceptions.

Other Nonledger Control Items

Review nonledger accounts to determine the maximum elapsed time for closing out entries or clearing items. Compare to the department’s stated policies, practices, or procedures.

Determine the status and reasonableness of old memorandum account items.