Internal Control Questionnaires and Verification Procedures

Real Estate Loan Records

Is the preparation and posting of subsidiary real estate loan records performed or adequately supervised by persons who do not also:
1. Issue official checks and drafts singly?
2. Handle cash?
Are the subsidiary real estate loan records reconciled daily with the appropriate general ledger accounts and are reconciling items investigated by persons who do not also handle cash?
Are loan statements, delinquent account collection requests, and past-due notices checked to the trial balances used in reconciling real estate loan subsidiary records to general ledger amounts and are they handled only by persons who do not also handle cash?
Are inquiries about loan balances received and investigated by persons who do not also handle cash?
Are documents supporting recorded credit adjustments checked or tested subsequently by persons who do not also handle cash (if so, explain briefly)?
Is a daily record maintained summarizing note transaction details, that is, loans made, payments received, and interest collected to support applicable general ledger account entries?
Are frequent note and liability ledger trial balances prepared and reconciled to controlling accounts by employees who do not process or record loan transactions?
Are subsidiary payment records and files pertaining to serviced loans segregated and identifiable?
Are properties under foreclosure proceedings segregated?
Is an overdue accounts report generated frequently? (If so, provide frequency ?)