Crime/Employee Dishonesty Questionnaire
(Please complete only if desired.)
1. Do you have an audited financial statement prepared annually? € Yes € No
€ Yes € No
2. Are internal financial statements prepared?
If yes, how often are they reviewed by the owner? ________________________________________________________
3. Describe your “Separation of Duties” and “Countersignature” procedures: _________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
4. Indicate the number of employees who handle, have custody or maintain records of money, securities or
other property: ___________________________________________________________________________________________
5. Are officer-shareholders active in the day to day oversight of business operations? € Yes € No
6. Do employees who reconcile the bank statement also:
Make deposits? € Yes € No Make withdrawals? € Yes € No Sign Checks? € Yes € No
7. Is countersignature of checks required? € Yes € No
If yes, what is the dual signing limit? _______________________________________________________________
8. Is segregation of duties practiced in the following areas:
Inventory management? € Yes € No Wire transfer receipts and payments? € Yes € No
Purchase order approval and payment? € Yes € No Vendor approval? € Yes € No
Oversight of blank check stock? € Yes € No Payroll? € Yes € No
Retail checks and Credit Card receipts? € Yes € No Cash receipts? € Yes € No
9. Are all incoming checks stamped “for deposit only” immediately upon receipt? € Yes € No
10. Are inventory records computerized? € Yes € No
Is a physical count of inventory conducted at least annually? € Yes € No
11. Are the duties of computer programmers and operators separated? € Yes € No
12. Are computer passwords changed frequently? € Yes € No
13. For new employees, do you perform any of the following types of background checks:
Prior employment? € Yes € No Education? € Yes € No Criminal history? € Yes € No
Drug testing? € Yes € No Credit history? € Yes € No
14. Are the controls indicated in 5-13 above imposed at all locations? € Yes € No
If no, please explain exceptions.
15. List all Crime/Fidelity Losses in the last three years:
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
16. Please indicate the coverages, limits, and deductibles desired:
€ $25,000 limit, $1,000 deductible
€ $50,000 limit, $1,500 deductible
€ $75,000 limit, $2,500 deductible
€ $100,000 limit, $5,000 deductible
€ Other _____________________
17. List any qualified benefit plans
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
18. Are you interested in Fiduciary Liability Coverage? € Yes € No
If yes, please attach Form 5500’s for each plan to be covered.
19. Current Fidelity Carrier? ________________ Premium? ________________
Limits? ________________ Deductible? ________________
ARF 5257 (AL) 010721 Page 6 of 6
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