Internal Control Questionnaires and Verification Procedures

Collection Items

In the event that memorandum control accounts are maintained, prepare or request that the bank prepare, under your supervision, a trial balance of each account controlled.
In the case of unusual, altered, or longstanding items, prepare and mail confirmation requests to customers.
Using an appropriate sampling technique, select representative items, and:
1. Review all supporting documents.
2. Review the authenticity of each item selected, and trace and clear each item through final payment including the posting of the appropriate credit to the customer.
Test postings of collections on detailed records to determine that disbursement of funds collected is in accordance with customers’ instructions.
Determine that credit is given promptly, on the same day received, for all collections settled.
Test appropriate records to determine that collection of fees for this service is in accordance with established policies or practices and that bank income accounts are being credited on a daily basis.