Internal Control Questionnaires and Verification Procedures

Inspections

1. Are inspection authorities noted in:

   1. The construction loan commitment?

   2. The building and loan agreement?

   3. Tri-party buy and sell agreement?

   4. Take-out commitment?

2. Are inspections conducted on an irregular schedule?

3. Are inspection reports sufficiently detailed to support disbursements?

4. Are inspectors rotated?

5. Are spot checks made of the inspectors’ work?

6. Do inspectors determine compliance with plans and specifications as well as progress of work?

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