Internal Control Questionnaires and Verification Procedures

Depreciation

1. Are the preparation, addition, and posting of periodic depreciation records performed and adequately reviewed by persons who do not also have sole custody of property?

2. Do the bank’s procedures require that depreciation expenses be charged at least quarterly?

3. Do persons who do not also have sole custody of property balance the subsidiary depreciation records, at least annually, to the appropriate general ledger controls?

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