I am doing an audit of our "due from accounts". We are a small community bank and there are only a few employees authorized to conduct transactions on these accounts. As a matter of fact there are only 3 that are true due from accounts. My problem is that I asked for documentation of who is authorized to conduct transactions on these accounts and no one here could come up with anything. I know the corresponent banks have to have them becuase they couldn't operate without them but we need to have documenation here also. So how do I write this up in my audit report? I might mention that there are no checks or drafts on these accounts. All transactions are done orally or electronically through the Fed.

What Fed interface are you using? (Do you have USB keys?)

Somebody has to have signed off on an authorization - start with the controller, go to the CFO next. If nobody has anything, then ask them to contact the correspondent for a copy.

I have been to the CEO and the Comptroller/CFO. Neither one could come up with the documents. I had thought about contacting the correspondents for verification.

That's what we did here. I couldn't find an up to date signature card from one of our correspondents so the CEO called them up and had one sent over. It was pretty simple. There should be a contact at your correspondent.