Internal Control Questionnaires and Verification Procedures

Purchase and Sales Transactions

1. Are all transactions promptly confirmed in writing to the actual customers or dealers?

2. Are confirmations compared or adequately tested to purchase and sales memoranda and reports of execution of orders, and any differences investigated and corrected (including approval by a designated responsible employee)?

   1. Are confirmations and purchase and sale memoranda checked or adequately tested for computation and terms by a second individual?

3. Are comparisons received from other dealers or brokers compared with confirmations, and any differences promptly investigated?

   1. Are comparisons approved by a designated individual (if so, give name )?

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