Internal Control Questionnaires and Verification Procedures

Depreciation (Operating Leases)

1. Is the preparation and posting of periodic depreciation records performed or reviewed by persons who do not also have sole custody of property?

2. Do the bank’s procedures require that depreciation expense be charged at least quarterly?

3. Do persons who do not also have sole custody of property balance the subsidiary depreciation records, at least quarterly, to the appropriate general ledger controls?

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