Internal Control Questionnaires and Verification Procedures

Policies

1. Has the board of directors, consistent with its duties and responsibilities, adopted written accounts receivable financing policies that:

   1. Establish procedures for reviewing accounts receivable financing applications?

   2. Establish standards for determining credit lines?

   3. Establish standards for determining percentage advance to be made against acceptable receivables?

   4. Define acceptable receivables?

   5. Establish minimum requirements for verification of borrower’s accounts receivable?

   6. Establish minimum standards for documentation?

2. Are accounts receivable financing policies reviewed, at least annually, to determine if they are compatible with changing market conditions?

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