This internal controls checklist is to be used by an external advisor to assess the controls in place for various bank operations. It includes controls to check for savings and checking account openings, signature cards, handling deposits, withdrawals and cash collections. It also includes controls for blank check and receipt administration, overages/shortages, waivers, daily transaction approvals and loan administration. The advisor is to check the status of the controls listed for each subject area.

1. Internal Controls Checklist for External Advisor, Consultant or Internal Auditor
This is a short list for an external advisor or consultant or designated internal auditor to use to conduct an Internal Controls
Assessment.
SUBJECT WHAT TO CHECK STATUS
Savings Account • ID’s required for personal accts.
Opening • Documents required for corporate accts.
Signature Cards • Custody of signature cards of active accts.
Maintenance • Custody of signature cards of inactive & dormant accts.
Handling Check Deposits • Are second endorsed checks acceptable?
• Are Manager’s Checks, Demand Draft, Pre-Audited Gov’t.
Checks subject to Clearing ?
• Does the bank follow the standard number of clearing days
set by the Phil. Clearing House?
Handling Withdrawals • Who verifies signature ? Limits?
• Who approves withdrawals? Limits?
• Is ID required ?
• Who pays for fraudulent withdrawals?
Module 3: Product Development
Session 6: Procedures and Internal Control
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2. Handling Cash Collections • Who keeps Official Receipts?
• When does collector request?
• When does collector turn over cash collection? To whom?
• Does collector include the series of OR’s issued in the daily
collection report?
Administration of blank • Who keeps blank CC’s and OR’s ?
Cashier’s Checks and • Is a monitoring logbook maintained?
Official
• Are issuances logged before or after?
Receipts
SUBJECT WHAT TO CHECK STATUS
Handling of • Is there a GL acct. for Overages & Shortages?
Overages/Shortages • How are these booked?
• How are these settled?
Waiver of Penalties & • Does the bank waive loan penalties? Up to
Other Charges • How much? How is this booked?
• Does the bank waive interest due? Up to how
• how much? How is this booked?
• Who approves waiver requests?
Approval of Daily • Who prepares entry tickets?
Transactions • Who checks entry tickets?
• Who approves entry tickets?
Loan Administration • Are loan applicants required to submit ID’s?
• Can the borrowers bring home the loan application
• and other forms for their spouse or Co-Maker to
• sign?
• Does Loan Supervisor interview borrowers prior
• to release?
• Does the Loan Supervisor visit clients? How often?