Internal Control Questionnaires and Verification Procedures

Direct Lease Financing Records

1. Is the preparation and posting of subsidiary direct lease financing records performed or reviewed by persons who do not also:

   1. Issue official checks and drafts singly?

   2. Handle cash?

2. Are the subsidiary direct lease financing records reconciled, at least monthly, with the appropriate general ledger accounts, and do persons who do not also handle cash investigate reconciling items?

3. Are delinquent account collection requests and past due notices checked to the trial balances used in reconciling subsidiary records of direct lease receivables to general ledger accounts, and are they handled only by persons who do not also handle cash?

4. Are inquiries about lease balances received and investigated by persons who do not also handle cash?

5. Are documents supporting recorded credit adjustments checked or tested subsequently by persons who do not also handle cash (if so, explain briefly)?

Previous: Policies and Objectives Next: Interest and/or Rent