Treasury

Segment Sub-segment Clarifying comment

Banking Bank Account Involves the activity to administer and control all
Administration bank accounts. Typical exposures in this sub-segment
are unclear bank instructions connected to accounts
and unofficial bank accounts that could be used in
[Company]'s name.
Bank Account The process to reconcile bank voucher statements
Reconciliation with General Ledger Accounts. The main exposure is
absence of a process that would detect unintended
routing of payments.
Bank Services Handles the daily operation and relation with
financial institutions, notably banks. Exposures are
absence of formal contracts, tariffs and fees at non-
competitive level, lack of control over tariffs and fees,
unnoticed sliding bank performance.

Cash Financial Policy and In this sub-segment, the controls over and existence
Management Procedures of the financial policies are judged. The exposure of
absence of a clear and balanced policy as well as
controls to ensure compliance could be employee
activities resulting in large financial losses.
Financial Planning The activities to forecast cash in- and outflows such
that company funds could be utilized to a maximum
extent.
Financing & Investments Involves the actual activities within Treasurer's to
place or borrow funds. Lacking management controls
in this sub-segment could result in inefficient or
inconsistent strategies.

Foreign Forex Policy & Procedures Deals with the existence and clearness of all Forex
Exchanges policies. Absence or inconsistencies could lead to
unintended large financial exposures.
Forex Monitoring & All activities to actually measure and judge forex
Stewardship transactions. Exposure could be unnoticed losses or
inadequate strategies as a result of incomplete
stewardship.
Financial Derivatives The possible use of derivative products is handled in
this sub-segment. The nature of this kind of financial
instrument is such that transactions with small or no
direct investments could open huge financial
exposure.

Segment Sub-segment Clarifying comment

Disbursements & Electronic Payments Handles all electronic methods, to wire company
Receipts funds to other accounts. A typical exposure is
unintended routing of payments, possibly not
recoverable.
Manual Payments Handles all manual methods, to wire company funds
to other accounts. A typical exposure is unintended
routing of payments, possibly not recoverable.
Electronic Receipt Handles all electronic methods to receive funds on
[Company] accounts. Loose controls could result in
late or inadequate action to urge 3rd party payments
or inefficient deposit of cash receipts.
Manual Receipts Handles all manual methods to receive funds on
[Company] accounts. Loose controls could result in
late or inadequate action to urge 3rd party payments
or inefficient deposit of cash receipts.
Petty cash Process in Treasurer's to exercise control over petty
cash funds. The main exposure is possibilities of theft
of the company's most liquid asset, cash.
Systems and LAN Involves all controls needed to operate EFT
applications in a sound and watertight manner.
Typical exposures are unsecured logon methods that
could result in fraudulent fund transfer, possibly
unrecoverable.
Involves also all controls needed to operate LAN.
Typical exposures are unsecured logon methods that
could result in system breakdowns, destroy of critical
databases, inaccurate system models, loss of
confidential company information etc.

Pension & Thrift Involves all activities needed to operate the financial
Funds and investment activities of the pension and thrift
funds. Typical exposure could be loss of pension and
thrift fund's reserves which in some cases may result
in company payments and/or loss of [Company]'s
good name.

Risk Management Risk Management Handles the company's insurance strategy. The main
& Other exposure in this sub-segment is uneconomical
Miscellaneous insurance strategies.
Activities
Other Miscellaneous Involves controls over third party contractors,
Activities expense budget and employee expense statements.

Segment: Banking

Sub-Segment: 1. Bank Accounts Administration

Objectives: Ensure the opening and closing of bank accounts and bank resolutions are properly authorized and
documented.
No. Standard Tests Local Tests & Additional Information

1. Review procedures for Banking Resolutions by the

Board to determine if proper controls and
authorization is included and documented.
2. Verify that appropriateness of the Company's
Banking Resolutions are reviewed by the Board at
least every two years.
3. Review Bank Instructions. Ensure that all bank
accounts have a specified business purpose and are
protected by instructions. On a sample of
instructions, test completeness, timely updating,
periodic review and written confirmation from
banks.
4. Verify that all banks have received an instruction
stating the position and names of the individuals
authorized to modify the instructions.
5. Review the procedures for approving requests for
opening and closing of bank accounts.
6. Verify that opening and closing of bank accounts by
authorized officers are recorded and ratified by the
Board at least annually.

Sub-Segment:1.Bank Accounts Administration(continued)

No. Standard Tests Local Tests & Additional Information

7. Review a sample of bank letters for accounts

recently opened or closed for compliance with
authorization. For closed accounts verify that
balance was properly handled. Ensure that two
authorized employees open and close the bank
account.
8. Review procedures to establish and delete
signatories and other persons authorization to
execute financial transactions to ensure compliance
with Banking Resolutions and Company standards.
9. Verify that there is an effective process in place to
ensure that bank always have the most current list of
signatories as per the latest Board resolution and that
notification of changes is given and responded upon
promptly.
10. Confirm that there is a procedure in place to identify
dormant accounts and that proper action is taken to
analyze further use or termination.
11. Confirm that all bank statements and other
documents are routed directly and on a timely basis
from the banks to the Controllers bank reconciliation
section to meet the requirements for independence.
 Sub-Segment: 2. Bank Accounts Reconciliation

Objectives: Assess the adequacy of controls in place for identification and reconciliation of bank accounts and that
responsibility is independent of those involved in financial operations.

No. Standard Tests Local Tests & Additional Information

1. Review Treasurer's involvement in timely

reconciliation of bank accounts. Check if boundaries
have been established between
Treasurer's/Controller's for bank accounts
reconciliation.
2. Verify that all bank accounts are recorded in the
General Ledger and test the compliance by obtaining
a complete list of bank accounts by both Treasurer's
and the banks/financial institutions (and vice versa).
3. Ensure that KPMG on an annual basis receive
statements from the banks covering all their
activities and obtain their complete list. Check with
KPMG that last year end reconciliation did not
identify any issues.
4. Review and test controls on value date of bank
statements.
5. Verify that all bank accounts are reconciled monthly
by independent personnel not involved in the
financial operations or the daily reconciliation of
accounts.
6. Verify that the result of the reconciliation is reported
timely to appropriate management for review,
approval and any follow-up.
7. Test a sample of bank accounts for monthly
reconciliation and in particular:
- numeric accuracy
- trace book balances to the General Ledger
- reconcile bank balances to bank statements
- investigate large/unusual reconciling items.

Sub-Segment:2. Bank Accounts Reconciliation (continued)

No. Standard Tests Local Tests & Additional Information

8. Review timely processing of bank statements in
the General Ledger for matching against accounting
transactions by determining the time lag between
registration date of financial transaction and their
input into General Ledger. Ensure that value date is
in line with booking documents and bank statements.
9. Review the accuracy and timeliness of the
unmatched items follow-up on items on bank
statement with no corresponding accounting entry
and items booked for accounting which are not on
the bank statement.
10. Evaluate access rights to the accounting system to
ensure that no persons involved in the financial
operations have access.

Sub-Segment: 3. Bank Services

Objectives: Review controls and administration of contracts with banks and other financial institutions to ensure
proper risk control and competitive conditions.

No. Standard Tests Local Tests & Additional Information

1. Review the most significant contracts with the

banks/financial institutions to determine:
- if the agreement has been properly
executed and approved.
- if liability between [Company] and the
Financial Institution has been defined in the
event of a fraudulent EFT transaction or
security breach.
- if the agreement contains all the clauses
required by Company Policy.

Sub-Segment: 3. Bank Services (continued)

No. Standard Tests Local Tests & Additional Information

2. Review a sample of bank statements to ensure that

the services actually charged agree with those stated
in the contract.
3. Ensure that bank charges are accounted for and
properly approved.
4. Test accruals for bank charges and ensure that they
are timely accounted for. Perform a cut off test at
month end.
5. Review bank performances appraisal. Check for
action in case of decreasing bank performance.
Check the basis for establishing/monitoring on the
ratings, frequency of reviews and level of
management involved.
6. Identify potential disagreements with bank and
assess the handling procedures for claims.
7. Review the register of bank statements guarantees,
 letter of indemnity and letters of credit to ensure
accuracy of register and controls according to
[Company] requirements.

Segment: Cash Management

Sub-Segment: 1. Financial Policy & Procedure

Objectives: Ensure financial policy and procedures are clearly defined, approved, communicated and periodically
reviewed.

No. Standard Tests Local Tests & Additional Information

1. Review policy and procedures for cash

management (including capital structure, dividend
policy, funding policy, investment optimization etc.)
and check if it is properly approved, documented,
communicated and timely updated.

Sub-Segment: 2. Financial Planning

Objectives: Ensure financial plans are timely set up, monitored and stewarded to ensure most effective utilization of
company funds.

No. Standard Tests Local Tests & Additional Information

1. Determine whether there is a permanent monitoring

system in place to forecast cash inflows and
outflows and that all major sources of expense and
revenue are identified.
 Sub-Segment: 2. Financial Planning (continued)

No. Standard Tests Local Tests & Additional Information

2. Analyze methods/procedures to implement the

financial planning and assess adequacy.
3. Determine whether the cash forecast is compared to
actual, the frequency of reviews and level of
management involved in the reviews.
4. Verify that bank deposits levels are regularly
monitored to allow timely utilizations of funds and
justified inter bank accounts transfer. Test estimated
account balances vs actual balances. Ensure that
balances are not retained in non-interest bearing
accounts and that overdrafts are minimized to avoid
interest costs. Check if opportunity to consolidate
funds in fewer bank accounts is investigated
periodically.
5. Ensure cash management results are periodically
reported to proper management.
6. Determine whether the monitoring/ reporting of
cash management activity is appropriately
segregated from the financial trading function.
Verify that documental evidence exists to ensure all
kind of deals performed with the bank system are
properly reported.

Sub-Segment: 3. Financing & Investment

Objectives: Verify there are adequate controls in place to ensure the most cost-effective forms of financing and the
most profitable investment of company funds.

No. Standard Tests Local Tests & Additional Information

1. Examine procedures related to short-term

borrowing. Verify implementation and supporting
documentation of selected short-term borrowings.

Sub-Segment: 3. Financing & Investment (continued)

No. Standard Tests Local Tests & Additional Information

2. Review procedures for administering long term

debts. Select a sample and check for compliance.
Examine use of government financial incentives and
other company financial agreement and check
current status.
3. Identify all forms of investment of company funds
(e.g. purchases/sales of stocks, bonds, government
securities, commercial paper, other form of equity or
debt securities and other assets).
4. Verify that initiation and approval of investment
transactions are included in specific
 policy/procedures and that they are approved in
accordance with delegation of authority guides.
5. Ensure that transactions related to investments and
related income (dividends or interest) are accurately
accumulated, classified and reported for review and
monitoring by appropriate management.
6. Ensure that responsibility for evaluating, initiating
and approving both borrowing and investment
transactions are segregated from those
responsibilities related to accounting for the
transactions.
7. Review and document procedures for administering
intercompany deposits and loans. Select a sample
of transaction for testing to determine compliance
with agreement (i.e. proper rate).

Segment: Foreign Exchange

Sub-Segment: 1. Forex Policy & Procedures

Objectives: Ensure that suitable policy and procedures were established to handle forex transactions. Ensure they
are documented, approved and periodically reviewed by management.

No. Standard Tests Local Tests & Additional Information

1. Review local Forex policy and check consistency

with Company principles. Ensure it is approved and
periodically reviewed by senior management.
2. Review procedures for executing forex transactions
including bid procedures, authorization dealing
limits, authorized banks, documentation, delivery of
funds and confirmation process. Ensure the
procedures are in line with the exchange regulation
of the country involved, are documented and
distributed to appropriate personnel.
3. Select a sample of forex transactions and check
compliance with policy and procedures including:
bid documentation, review of bids by person
independent of dealers, accuracy/timeliness of
matching bank confirmation by [Company].
4. If verbal instructions have to be provided to the
bank, check they are given by authorized personnel
only and are immediately confirmed in writing by
authorized signatories.
 Sub-Segment: 1. Forex Policy & Procedures (continued)

No. Standard Tests Local Tests & Additional Information

5. If other than competitive bids are used, check if

documentation of market conditions (official
published rates) is maintained and used for
ascertaining the reasonableness of rates being
obtained by the company.
6. Determine whether dealers are rotated periodically
and back up procedure are in place when they take
vacations.
7. Examine procedure for payment/collection of
foreign currency invoices (both intercompany and
third party) and check relevant compliance and
proper booking.

Sub-Segment: 2. Forex Monitoring & Stewardship

Objectives: ensure a monitoring and a reporting system is in place to prevent unauthorized forex transactions and to
enable management to determine whether actual results of forex operations are consistent with overall forex
objectives.

No. Standard Tests Local Tests & Additional Information

1. Check if review procedure are in place to verify that

all forex transactions are properly authorized and
carried out according to policy and procedures. On a
sample of forex transactions, check compliance with
delegated authorities.
2. Ensure a proper segregation of duties is in place for
the following activities: approval and execution of
transactions, recording of transaction, verification of
activities. Verify that bank confirms every forex
transaction to independent personnel.
3. Review the monitoring and reporting tools
available to measure the efficiency of forex
transactions. Ensure a thorough stewardship is
periodically presented to management for review.

Sub-Segment: 2. Forex Monitoring & Stewardship (continued)

No. Standard Tests Local Tests & Additional Information

4. Review any outstanding balance of foreign

currency account and verify their justifications.

Sub-Segment: 3. Financial Derivatives

Objectives: ensure usage of derivative financial instruments is in compliance with [Company] standards.
No. Standard Tests Local Tests & Additional Information

1. Check compliance of local Financial Derivative

Policy with [Company] Standards.
Verify the local Derivative Policy and the business
purpose, strategy and results are reviewed by the
senior management at least once per year.
2. Verify that any exceptions to the Standards were
identified and reported.
3. Check if clear instructions were given to the banks
to prevent unauthorized usage of derivatives.
4. Document the rational for the use of derivatives.
Specifically, do they increase or decrease risk or are
they risk neutral.

Sub-Segment: 3. Financial Derivatives (continued)

No. Standard Tests Local Tests & Additional Information

5. If derivatives are used, verify the following:

- segregation of duties between transaction
initiation, approval, execution, review/monitoring
and accounting activities;
- transaction approval at a sufficiently high level in
the organization;
- independent and timely review of executed
transactions;
- monitoring of monetary status;
- upline reporting of status of appropriate level of
management;
- appropriate contracts with brokers and financial
institution.
 Segment: Disbursements & Receipts

Sub-Segment: 1. Electronic Payments

Objectives: Assess controls over computer generated and electronic payments for compliance with Company
standards and management requirements, including interface with accounting function.

No. Standard Tests Local Tests & Additional Information

1. Review process of electronic payments in detail and

analyze, with Payables data, the types, currencies
and number of possible methods of electronic fund
transfers. Assess the security controls in place to
prevent misuse, including instruction to banks.
Verify that proper segregation of authorities exists to
perform wire transfers.
2. Review involvement of Treasurer's in Direct
Crediting disbursements procedure and related
controls. Ref. Accounts Payable audit.
3. Take a sample of Electronic Funds Transfer (EFT)
transactions operated by Treasurer's. Review
routines for input checks, approval of inputted
transactions, confirmation of transfer by bank and
communication of transfer to bank accounting and
internal Company accounting. Identify any changes
that have taken place since the previous audit and
highlight those for special attention and vary testing
accordingly.
4. Refer to System sub-segment to test the EFT system
environment.

Sub-Segment:2. Manual Payments

Objectives: Assess controls over manual payments for compliance with Company standards and management
requirements, including interface with accounting function.

No. Standard Tests Local Tests & Additional Information

1. Review involvement of Treasurer's in manual

 payments procedure and related controls.
2. Review telex payment procedures and assess
control.
3. For test coded telexes, verify there is no opportunity
to alter bank account information in sending of test
coded telexes; test code booklets and lotus
spreadsheets containing test code algorithms are kept
secure; reasonableness of security provide by
algorithm (amount, date, sequence, variable
numbers, etc.).
4. Determine that [Company] personnel responsible for
the two-parts of the algorithms do not have access
to information that would allow them to complete a
test code (backups, vacation, job rotation, transfer),
i.e. that there is an appropriate segregation of duties.
5. Review telefax payment requests for payments and
assess control.
6. Review tape payment procedures. Check for:
- approval of tape
- coding security
- other validity tests
- access to system and opportunities to
manipulate content of the tape after
approval.
- communication to bank accounting
- bank confirmation (bank debit note + copy
of transfer list signed by the bank for
execution).

Sub-Segment:2. Manual Payments (continued)

No. Standard Tests Local Tests & Additional Information

7. Review telephone payment procedures. Ensure they

can only be used for Intercompany transactions and
controls are in place to prevent unauthorized use.
Test a sample by reviewing approval of payment
request, confirmation by bank to independent
employee and appropriateness of payment by
telephone.
Review limitation of payees and bank accounts, in
practice (sample) and in the Bank Instructions.
8. Review procedures for one-off bank orders to bank.
Review Bank Instructions for checks on the order,
communication to bank accounting and bank
confirmation procedure.
9. Review procedures for permanent bank orders to
bank. Review Bank Instructions for checks on order,
communication to bank accounting, periodic review
of appropriateness of permanent orders. Confirm
periodic check on appropriateness of permanent
order through sample testing.
10. Review procedures for bank payments through
bank cheques (including drafts). Review approval
 of request to bank, bank review of requests,
confirmation procedure and communication to bank
accounting.

Sub-Segment:2. Manual Payments (continued)

No. Standard Tests Local Tests & Additional Information

11. Review payments by [Company]-held cheques

for:
- custody of [Company] cheques
- independent administration
- independent periodic inventory check
- required and segregated approvals for
writing cheques.
- Bank Instructions ref. acceptance of
cheques.
- approval and supporting documentation
for [Company] cheque payments.
- communication to bank accounting.
12. Obtain a list of all the manual cheques both pre-
signed and unsigned. Understand the independent
verification process and carry out a spot check on
cheque stocks and security of storage. Confirm that
there is not an excessive number of cheques.
13. Review the procedure for non-cashed cheques and
Treasurer's involvement in cancelling/reassigning
cheques. If so, what is the cut-off between
Controllers and Treasurers.
14. For a sample of above transactions, ensure that are
timed to maximize time value (no early payments,
but paid on time.
15. Check controls exercised over credit lines opened to
field locations for local disbursements.

Sub-Segment: 3. Electronic Receipts

Objectives: Ensure promptly processing, recording, safeguarding and depositing of Electronic Receipts.
No. Standard Tests Local Tests & Additional Information

1. Review the EFT systems used for collections and

evaluate involvement and responsibility of
Treasurer's (check interactions with Controller's).
Verify approval of receipt batch, security of batch,
communication to bank accounting, follow up on
unmatched items between receipt batch and batch
statements/bank receipts, communication of these
unmatched items to credits. Refer also to System
sub-segment.
2. Check if any system of Direct Debiting is in place
and assess controls in place. Select a sample of
unmatched items and review their process and
approval, including verification and approval of
receipt batch.
3. For Direct Debiting, ensure that liabilities for
uncollected debits are clearly stated in the contracts
between the company and collecting banks/agencies.
4. Verify that measures of EFT receipts performance
are in place to ensure accuracy of amounts credited
and correct value date.
5. Refer to System sub-segment to test the EFT system
environment.

Sub-Segment: 4. Manual Receipts

Objectives: Ensure manual receipts are processed timely and accurately and controls are appropriate.

No. Standard Tests Local Tests & Additional Information

1. Review manual collection methods (cash, cheques,

tape, telephone, remittances from field locations
etc.). Evaluate controls and Treasurer's
involvement/responsibility on each methods.
2. For cash and cheque receipts, review location and
administration and safe keeping of incoming cash
and cheques, communication to Treasurer's and bank
accounting, checks on incoming cash and checks
(are cheques crossed ?), custody, further handling.
3. Review communication between
Bank/Treasurer's/field locations on stolen/returned
cheques. Ensure that any credit stop to customer is
promptly effected and funds recovered.
4. For tape receipts, review correctness of batch, tape
generation, tape security, check on tape upon receipt,
communication to bank accounting.
5. For telephone receipts, review communication to
credits and bank accounting, inclusion of telephone
receipts in daily cash management, exposure to
incorrect telephone calls/omittance of follow up
upon incoming calls.
6. Verify that measures of all methods of manual
receipts performance are in place to ensure
accuracy of amount s credited and correct value date.
7. Verify procedures for analyzing non-cashed
cheques and how they are reflected in the books.

Sub-Segment: 5. Petty Cash

Objectives: Ensure petty cash funds are kept at a minimum required for each operational area and controls are
established to check disbursements and funds balance.

No. Standard Tests Local Tests & Additional Information

1. Identify existing petty cash funds and check

management approval for their establishment and
size.
2. Verify that custody of petty cash funds is restricted
to designated employees and funds are adequately
secured.
3. Select a sample of disbursements and verify they
are documented and approved.
4. Ensure an independent verification of petty cash
funds is performed at least every two years.
5. Ensure the fund custody and the fund reconciliation
functions are adequately segregated.
 Sub-Segment: 6. Systems and LAN

Objectives: Ensure that the EFT environment (for both disbursements and receipts) is soundly controlled and is in
full compliance with minimum computer and telecom standards. Evaluation of adequacy and effectiveness of
systems and equipment. Ensure that access and modification to data is strictly restricted to authorized personnel only.
Review LAN application used to ensure proper controls are in place to prevent unauthorized log-on and unintended
breakdowns.

No. Standard Tests Local Tests & Additional Information

1. Physical & Environmental Controls

Review with Treasurer's Management and visit
physical location of equipment and determine the
following:
- personnel who have access to equipment
- controls which prevent access to unauthorized
personnel
- physical exposures/needs (i.e. fire, water,
electrical).
2. Backup & Contingency Planning
Determine whether a Business Continuity Plan exists
and whether it addresses at least the following.
- alternate equipment/site availability
- backup/recovery of critical programs and data.
3. Program & Data Security Review
Review and document procedures for the following:
- system sign-on (including authentication) to ensure
compliance with minimum computing standards as
well as local security standards
- Access to user's passwords, authorities/capabilities,
PIN's, as well as preauthorized lines, etc.
- Data entry control
- System audit trails (including notification of
unauthorized access attempts).

Sub-Segment: 5. Systems and LAN (continued)

No. Standard Tests Local Tests & Additional Information

4. Data Security Administration Review

Review and document procedures for the following:
- obtaining ID's for the systems
- updating passwords, PIN's, etc.
- periodic management review of users and their
access
- communication systems security policies to users
as well as banks.
5. ID's Review/Segregation of Duties
Obtain a listing of all ID's, names associated with the
ID's, and capabilities of each ID currently
established in the systems. Review the listing and
determine if appropriate segregation of duties are in
place and whether ID's are still needed.
6. LAN Application
- ensure that responsibilities are established and
procedures are in place to operate and manage the
LAN
-review and test security system in place to secure
log-on ID's
-ensure that changes to the LAN application are well
controlled. Pay attention to documentation of request
and approval, existence of segregation of duties
- review the contingency/emergency plans and
ensure that these plans are periodically tested.
Ensure sound procedures are in place to secure data
by regular and safe back-ups

Segment: Pension & Thrift Funds

Objectives: Determine proper authorities, accurate financial reporting. Ensure that Fund's assets are properly
protected and custodial controls are in place.

No. Standard Tests Local Tests & Additional Information

1. Review Pension/Thrift Funds

agreements/organization and identify company
exposure in the administration of the funds. Verify
compliance with local laws/regulations.
2. Make or obtain an overview of all the Pension/Thrift
Funds assets: cash, bonds, equities, real estate etc.
Determine management and custody responsibility
per (sub) category and ensure that functionally
reviewed contracts are in place for each
(sub)category.
3. Make or obtain an overview from all personnel
involved in transactions for the Pension/Thrift
Funds: secretary, administrator, Investment
Committee, Board etc. Ensure that all involved
personnel has clearly described authorities. Review
if segregation of duties is achieved.
4. Verify if external funds administration services are
provided. Review agreements and controls in place.
5. Review investment policy. Test compliance.
6. Review the system used for stewardship of results.
If external managers are used, assess if objective
benchmarks exist to measure results and ensure
adequate action if appropriate. Verify if no
unintended incentive exist to increase investment
risk.
 Segment: Pension & Thrift Funds (continued)

No. Standard Tests Local Tests & Additional Information

7. Ensure that management fees are properly reviewed

before disbursement to be in contractual compliance.
8. Ensure that the Pension/Thrift Funds - company
relation is at arm's length.
9. Test if securities, reported to be in custody, are
actually available. Ensure that credit risk of
custodians is acceptable and is followed by
Pension/Thrift funds personnel.
10. Ensure that all deals intended for the funds appear in
the books and that no misuse exists. Pay especially
attention to historical volatile months where in-
between 2 monthly reports profitable opportunities
have existed.
11. Determine whether an [Company] employee,
independent of the portfolio trader, compares
executed trade tickets to the monthly portfolio
statements.
12. If financial derivatives are used, assess relevant
authorization, compliance with Standards and
controls on transactions.

Segment: Risk Management & Other Miscellaneous Activities

Sub-Segment : 1. Risk Management

Objectives: Review of the risk policy and its application. Ensure insurance claims are economically handled and
examine insurance coverage.

No. Standard Tests Local Tests & Additional Information

1. Review [Company]'s policy for self assurance and

review compliance. Check also with a best practice
guide to Insurance. Examine insurance policies to
 determine that they are current, signed and contain
reported coverage.
2. Determine with Law if local legal requirements
exist regarding workers compensation, car liability,
fire, 3rd party liability etc, and ensure practices are
in compliance.
3. Obtain listing of all insurances in place. Examine the
bidding procedure and documentation justifying
selection. Ensure that for all equal fit insurance
companies, best practice company has been selected.
4. Review claim files and determine if all cases are
promptly and economically handled. Review
contract in place with eventual claim broker.
5. Obtain list of general ledger accounts for which
Treasurer's Risk management is responsible.
Examine proper and timely reconciliation.
6. Test if loss potentials exist underlying the insurance
strategy and ensure that these potentials are updated
as appropriate.

Sub-Segment : 2. Other Miscellaneous Activities

Objectives: Ensure that other third party services to Treasurer's are acquired for true needs and in compliance with
the law and company rules.
Ensure that reliable estimates of expenses required for the implementation of Treasurer's activities are done and their
trend is observed to identify the appropriate corrective action in due time.
Ensure that reimbursements to employees are justified by real job requirements.

1. Identify other key Treasurer's contracts, not

covered in the previous tests, and review for
adequacy of terms and compliance.
2. Review Department expense budget for
appropriateness of changes.
3. Review a sample of employee expense statements
and ensure they comply with the established criteria.