Internal Control Questionnaires and Verification Procedures

Records

1. Is the preparation and posting of subsidiary accounts receivable financing records performed or reviewed by persons who do not also:

   1. Issue official checks and drafts singly?

   2. Handle cash?

2. Are the subsidiary accounts receivable financing records reconciled, at least monthly, to the appropriate general ledger accounts, and reconciling items investigated by persons who do not also handle cash?

3. Are loan statements, delinquent account collection requests, and past due notices checked to the trial balances that are used in reconciling subsidiary records of accounts receivable financing loans with general ledger accounts, and handled only by persons who do not also handle cash?

4. Are inquiries about accounts receivable financing loan balances received and investigated by persons who do not also handle cash?

5. Are documents supporting recorded credit adjustments to loan accounts or accrued interest receivable accounts checked or tested subsequently by persons who do not also handle cash (if so, explain briefly)?

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