Internal Control Questionnaires and Verification Procedures

Investment Securities Records

1. Do subsidiary records of investment securities show all pertinent data describing the security, its location, pledged or unpledged status, premium amortization, discount accretion, and interest earned, collected, and accrued?

2. Is the preparation and posting of subsidiary records performed or reviewed by persons who do not also have sole custody of securities?

3. Are subsidiary records reconciled, at least monthly, to the appropriate general ledger accounts, and are reconciling items investigated by persons who do not also have sole custody of securities?

4. For international division investments, are entries for U.S. dollar carrying values of foreign currency denominated securities rechecked at inception by a second person?

Previous: Custody of Securities Next: Purchases, Sales, and Redemptions