Internal Control Questionnaires and Verification Procedures

Drafts

1. Are procedures in effect for the handling of drafts so that:

   1. All unissued drafts are maintained under dual control?

   2. All drafts are pre-numbered?

   3. A printer’s certificate is received with each supply of new pre-numbered drafts?

   4. A separate series of drafts is used for each bank?

   5. Drafts are never issued payable to cash?

   6. Voided drafts are adequately canceled to prevent possible reuse?

   7. A record of issued and voided drafts is maintained?

   8. Drafts outstanding for an unreasonable period of time (perhaps 6 months or more) are placed under special controls?

   9. An authorized employee signs all drafts?

   10. The employees authorized to sign drafts are prohibited from doing so before a draft is completely filled out?

   11. If a check-signing machine is utilized, controls are maintained to prevent its unauthorized use?

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