Internal Control Questionnaires and Verification Procedures

Bank Reconcilements

  1. Are bank reconcilements prepared promptly at least once a month?

  2. Are bank statements examined for any sign of alteration, and are payments or paid drafts compared (individually or in total) with such statements by the persons who prepare bank reconcilement (if so, skip question 5)?

  3. If the answer to question 4 is no, are bank statements and paid drafts or payments handled before reconcilement only by persons who do not also:

    1. Issue drafts or official checks singly and prepare, add, or post the general or subsidiary ledgers?

    2. Handle cash and prepare, add, or post the general ledger or subsidiary ledgers?

  4. Are bank reconcilement prepared by persons who do not also:

    1. Issue drafts or official checks singly?

    2. Handle cash?

  5. Concerning bank reconcilements:

    1. Are amounts of paid drafts or payments compared or tested to entries on the ledgers?

    2. Are entries or paid drafts examined or reviewed for any unusual features.

    3. Whenever a delay occurs in the clearance of deposits in transit, outstanding drafts, and other reconciling items, are such delays investigated?

    4. Is a record maintained after an item has cleared regarding the follow-up and reason for any delay?

    5. Are follow-up and necessary adjusting entries directed to the department originating or responsible for the entry for correction with subsequent review of the resulting entries by the person responsible for reconcilement?

    6. Is a permanent record of the account reconcilement maintained?

    7. Are records of the account reconcilement safeguarded against alteration?

    8. Are all reconciling items clearly described and dated?

    9. Are details of account reconcilement reviewed and approved by an officer or supervisory employee?

    10. Does the person performing reconcilement sign and date them?

    11. Are reconcilement duties for foreign demand accounts rotated on a formal basis?

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