Good morning,

I am responding to an audit recommendation that I implmement an endorsement verification on large dollar Cashier's Checks that are received in cash letters. I don't want this additional step, as endorsements are the responsibility of the BOFD, and I don't want my staff to be viewed as approving the endorsements as received.

I'm interested to know if other banks are reviewing endorsements in these circumstances, and I appreciate any feedback via the poll or comments.

Thank you,
Karen

How the [censored] (fill in the blank) do you verify an endorsement for a party that you most likely have no knowledge of???? You need new auditors.

well, I take Randy's comments to be a "no"!

I'm looking for the "LIKE" button for Randy's comment.

It was the ONLY "issue" found on in my area, so it seemed to be one of those "I must find something" situations. I plan to use the poll in my case to reject the suggestion.

Just give them a copy of my response

Tell them great, thanks for the recommendation and that you will implement once they put the following in writing to you so you can use it to justify with management the increased FTE you will need to implement their recommendation. If they cannot provide this information, please eliminate this recommendation from the report or you plan to have a first hand discussion with the chairperson of the audit committee.

1. What we are looking for?
2. What do we do if we think we find something? and
3. Provide me a list of the protections this affords the bank over and above the presentment warranties from the bank of first deposit.

Whether another bank does or does not do something this stupid really isn't much of a response or justification to follow the lemmings over the cliff.

we review endorsements on checks that come up in our sig verify program. If the endorsement conflicts with the payee (i.e. payable to a business and endorsed by an individual, we return it. If payable to two parties (with &) and only one endorses it, we return it. If it has "for deposit only"; or just an acct # we accept it.

Why??

Guru response to this issue:

http://www.bankersonline.com/compliance/v_gurus_cmp032601.html