IT Examiner School, Providence, RI

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.