Foreign Currency Transaction Checklist ( FINANCE )

This checklist is designed to ensure all steps are followed when processing foreign currency transactions, minimizing risks and ensuring compliance with financial regulations.

• Identify Currency Transaction

  Determine if the transaction involves foreign currency exchange and note the specific currencies involved.

• Evaluate Exchange Rates

  Check the current exchange rates from a reliable source and document the rates applicable for the transaction date.

• Calculate Amount in Local Currency

  Convert the foreign currency amount to local currency using the evaluated exchange rates.

• Review Transaction Documentation

  Ensure that all necessary documentation related to the foreign currency transaction is complete and accurate.

• Obtain Necessary Approvals

  Secure necessary approvals from management or finance team as per the financial policies before proceeding.

• Record Transaction in Accounting System

  Input the transaction details into the accounting system, ensuring to reflect the foreign currency and the conversion.

• Monitor for Foreign Exchange Gains or Losses

  After processing, keep track of any foreign exchange gains or losses that may affect financial reporting.

• Review Compliance with Regulations

  Ensure that the transaction complies with relevant financial regulations and internal policies concerning foreign currency transactions.