Internal Control Questionnaires and Verification Procedures

Other

1. Are acceptance record copies, own acceptances discounted (purchased), and acceptances of other banks purchased safeguarded during banking hours and locked in the vault overnight?

2. Are blank (pre-signed) customer drafts properly safeguarded?

3. Does an officer approve any acceptance fee rebates?

4. Does the bank have an internal review system that:

   1. Re-examines collateral and supporting documentation held for negotiability and proper assignment?

   2. Test checks values assigned to collateral at frequent intervals?

   3. Determines that lending officers are periodically advised of maturing bankers’ acceptances or acceptance lines.

5. Does the bank’s acceptance filing system provide for the identification of each acceptance, e.g., by consecutive numbering and applicable letter of credit, to provide a proper audit trail?

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