Internal Control Questionnaires and Verification Procedures

Property Records

Do persons who do not also have sole custody of property post subsidiary property records?
Do persons who do not also have sole custody of property balance the subsidiary property records, at least annually, to the appropriate general ledger accounts?
Bank As Lessor (Bank Premises and Bank Related Equipment Only)
Do policies provide for division of the duties involved in billing and collection of rental payments?
Are the lease agreements subject to the same direct verification program applied to other bank assets and liabilities?
Are credit checks performed on potential lessees?
Do policies provide for a periodic review of lessees for undue concentrations of affiliated or related concerns?
Bank as Lessee (Bank Premises and Bank Related Equipment Only)
Does the bank have a clearly defined method of determining whether fixed assets should be owned or leased, and does the bank maintain supporting documentation?
Are procedures in effect to determine whether a lease is a “capital” or an “operating” lease as defined by the generally accepted accounting principles?
Do the bank’s operating procedures provide, on “capital” leases, that the amount capitalized is computed by more than one individual and/or reviewed by an independent party?