Internal Control Questionnaires and Verification Procedures

Foreign Exchange Activities

1. Are persons handling and reconciling due from foreign bank—demand accounts excluded from performing foreign exchange and position clerk functions?

2. Is there a daily report of settlements made and other receipts and payments of foreign currency affecting the due from foreign bank— demand accounts?

3. Is each due from foreign bank—demand foreign currency ledger revalued monthly, and are appropriate profit or loss entries passed to applicable subsidiary ledgers and the general ledger?

4. Does an officer not preparing the calculations review revaluations of due from foreign bank—demand ledgers, including the verification oft rates used and the resulting general ledger entries?

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