SUBMITTED ON 6-15-02 by BRIAN TEETS
30/60 day receivables
1. Obtain understanding of monitoring and tracking that is performed on
2. Obtain current reports of accounts overdue by less than 90 days.
3. Obtain understanding of follow-up efforts that are performed on overdue
4. Select sample of accounts to test
5. Test for evidence of follow-up efforts being performed, and applicable
late charges and penalties being assessed.
Over 90 day
1. Obtain current reports of accounts overdue in excess of 90 days.
2. Select sample of accounts over 90 days overdue to test.
3. Verify that follow-up efforts were performed prior to account being 90
4. Obtain understanding of what additional follow-up efforts have been
5. Verify that action has been taken (late charges, cancellation warning,
cancellation, referral to collection agency, litigation, etc.)
1. Review procedures and guidelines for negotiating promissory notes.
2. Assess reasonableness of terms of promissory notes.
3. Obtain understanding of what monitoring of promissory note payments is
4. Select sample of promissory notes to test.
5. Verify that procedures and guidelines have been adhered to and
payments are being received and processed timely.
1. Obtain list of all collection agencies utilized.
2. Obtain understanding of guidelines and procedures for referring an
account to a collection agency.
3. Obtain list off accounts currently referred to a collection agency.
4. Select a sample of referred accounts to test.
5. Review selected accounts for the following:
• Referral is within guidelines
• Evidence of internal efforts prior to referral
• Regular communication between collector and agency
• Timely resolution
• Accurate and timely remittance of any payments from insured