Internal Control Questionnaires and Verification Procedures

Dealing Room Instructions

Note: Although dealing room and instructions functions must be separate, often foreign exchange and due from bank time deposit activities relating to those functions are combined.

1. Are dealer slips and contract/confirmation sets relating to due from banks time deposit numbered sequentially and checked periodically?

2. Is a positions clerk present in the dealing room to maintain dealers’ memoranda records of due from bank time deposits?

3. Is due from banks time deposit “instructions” (operations) organizationally and physically separate from the foreign exchange dealers?

4. Do good communications appear to exist between the dealing room and instructions to assure:

   1. An effective working relationship with operations and management to ensure adequate control and management information?

   2. Coordination with operations regarding correct delivery/settlement instructions?

5. Does instructions (operations) maintain all official accounting records relating to due from banks time deposits?

6. Does instructions (operations):

7. Are confirmations compared to the general ledger entries for accuracy?

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