Internal Control Questionnaires and Verification Procedures

Consigned Items

1. Is the reserve stock of consigned items maintained under dual control?

2. Are inventory dollar limits assigned? Are they prudent?

3. Are working supplies kept to a reasonable minimum, e.g., two or three days’ supply, and adequately protected during banking hours?

4. Is a memorandum control maintained of consigned items?

5. Are separate accounts with the consignor maintained at each issuing location (branch), if applicable?

6. Is the working supply put in the vault at night and over weekends or holidays, or is it otherwise protected?

7. Are remittances for sales made on a regularly scheduled basis, if not daily?

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