Prepare an application controls matrix for the process using page 3 and 4. Cross-reference the controls to the matrix using the approriate numbers fromthe list of procedures
Case 1- 309 for Adams and Company, was assigned the Lucas Adams, a junior auditor review of a client banks loan responsibility of conducting a preliminary application department operations. how the procedure is with the collateral received on loans was asked to check Lucas Collateral can be anything of value acceptable to the bank but is typically some type of security. Lucas found that customers over any collateral to loan officer, who prepares and signs the next in sequence in a prenumbered form that describes the collateral and serves as a receipt. The customer receives the original of the collateral receipt form. The second copy of the form is sent directly to the collateral records clerk, who logs it in. The loan officer takes the third copy to the vault custodian along with the collateral. The final copy is cancelled and discarded. The vault custodian compares the third copy of the receipt with the collateral in the loan officers presence. If they agree, the vault custodian signs the third copy. The vault custodian then attaches a tag to the collateral and carries it and the third copy of the collateral receipt to the vault attendant. The vault attendant also compares the description on the third copy with the tagged collateral. If they match, the vault attendant opens the vault and jointly with the vault custodian deposits the collateral within. The vault attendant notes the location on the third copy and signs it. The completed third copy is then taken by the vault attendant to the collateral clerk. Until the third copy is received, the collateral clerk keeps the unmatched second copy, filed alphabetically in a suspense file as a reminder for follow-up purposes. it On receiving the third copy from the vault attendant, the collateral clerk compares to the second copy previously received directly from the loan officer. the third and second copies match, the collateral clerk completes the entry in the collateral register in alphabetical order. The second copy and the third copy of the collateral receipt are placed in a permanent file by name. Any differences are resolved with the loan office assistance. List of procedures Customer: 1. brings in collateral to loan officer 2. receives receipt for collateral Loan Officer: receives collateral from customer 4. removes prenumbered four-part form from file 5. completes form describing collateral and signs it 6, gives original to customer 7. sends second copy to collateral check 8. takes third copy to vault custodian 9. cancels and discards fourth copy collateral sealed bag to vault custodian 10. takes i Vault Custodian Case 1- 309 for Adams and Company, was assigned the Lucas Adams, a junior auditor review of a client banks loan responsibility of conducting a preliminary application department operations. how the procedure is with the collateral received on loans was asked to check Lucas Collateral can be anything of value acceptable to the bank but is typically some type of security. Lucas found that customers over any collateral to loan officer, who prepares and signs the next in sequence in a prenumbered form that describes the collateral and serves as a receipt. The customer receives the original of the collateral receipt form. The second copy of the form is sent directly to the collateral records clerk, who logs it in. The loan officer takes the third copy to the vault custodian along with the collateral. The final copy is cancelled and discarded. The vault custodian compares the third copy of the receipt with the collateral in the loan officers presence. If they agree, the vault custodian signs the third copy. The vault custodian then attaches a tag to the collateral and carries it and the third copy of the collateral receipt to the vault attendant. The vault attendant also compares the description on the third copy with the tagged collateral. If they match, the vault attendant opens the vault and jointly with the vault custodian deposits the collateral within. The vault attendant notes the location on the third copy and signs it. The completed third copy is then taken by the vault attendant to the collateral clerk. Until the third copy is received, the collateral clerk keeps the unmatched second copy, filed alphabetically in a suspense file as a reminder for follow-up purposes. it On receiving the third copy from the vault attendant, the collateral clerk compares to the second copy previously received directly from the loan officer. the third and second copies match, the collateral clerk completes the entry in the collateral register in alphabetical order. The second copy and the third copy of the collateral receipt are placed in a permanent file by name. Any differences are resolved with the loan office assistance. List of procedures Customer: 1. brings in collateral to loan officer 2. receives receipt for collateral Loan Officer: receives collateral from customer 4. removes prenumbered four-part form from file 5. completes form describing collateral and signs it 6, gives original to customer 7. sends second copy to collateral check 8. takes third copy to vault custodian 9. cancels and discards fourth copy collateral sealed bag to vault custodian 10. takes i Vault Custodian
