IT Examiner School, Seaside, CA

Assess Wire and ACH Activities

Step 4: Review written agreements: – Place responsibility on customer for ensuring accurate and authorized transactions.

– Explain authorized procedures for presenting instructions.

– Include signature authority for persons authorized to provide instructions or files

– Explain how or when, or if, the bank must verify transaction instructions before origination

– Should address NACHA rules

Assessing Wire and ACH Activities

Step 5: Assess credit evaluation and approval processes for wire and ACH activities – Determine whether management prohibits sending funds until they are fully collected

– If overdrafts are allowed, assess the adequacy of review/approval procedures and monitoring of customer’s overdraft and individual credit limit positions.

– Determine if ACH limits are established, periodically reviewed, and enforced.