Internal Control Questionnaires and Verification Procedures

Safe Deposit Boxes

1. Obtain the following:

   • Rental contracts.

   • Inventory control records.

   • Records of safe deposit boxes used for bank property.

   • Documentation of drilled boxes.

2. Compare the number of rental contracts in force to the total number of safe deposit boxes. Reconcile any differences.

3. Determine the current status of rental payments on a sample of boxes rented.

4. Determine the reasons for any deviation from established fee schedules.

5. Using an appropriate sampling method, test check vault entry records for proper signatures of authorized persons.

6. In the presence of a bank official, inspect and reconcile the following to inventory control records maintained by the bank:

   1. Keys for unrented boxes.

   2. Extra locks and keys kept for replacement purposes.

   3. Contents of any drilled safe deposit boxes.

7. For the safe deposit boxes used by the bank, prepare a working paper detailing all items they contain.

8. Review the reasonableness of documentation associated with any drilled boxes. (Boxes may be drilled for nonpayment of rent; upon written request of lessee; and for a special administrator, with proper legal authority, in search of a will.)

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