Internal Control Questionnaires and Verification Procedures

Cash Items

Prepare (or request bank employees to prepare under our supervision) lists of outstanding items
Agree totals to the daily statement controls and to the general ledger.
Using an appropriate sampling technique, select items for review of supporting documentation, and request confirmation of payor.
Review all cash items selected to determine if they are legitimate, that they are being processed on a current basis, and that they contain no officer, employee, or director items.
Scrutinize any additional cash items which are not segregated in a control account to ensure their validity.
Investigate, through inquiry or other appropriate means, any unusual, stale, or recurring items and satisfy yourself as to their reasonableness or final disposition. All items not in the process of collection should be transferred to an appropriate non-cash suspense account.
Prepare list of items recommended for charge-off, and ascertain that appropriate entries are made on the bank’s books.
Release control of the cash items.