Question: 1
Financial institutions regularly identify uncollectible and charge them off against the reserve for loan losses. Auditors should ensure that the institution has developed adequate criteria for
charge-offs and select a sample of charged-off loans whether they are handled properly.
Another useful test is:
Question: 2
''These are usually secured by mortgages, deeds of trust, land contracts, or other types of real
estate liens. Interest rates for residential mortgages loans may be fixed or variable. Repayments of principal may be set up for full amortization, negative amortization, or partial amortization with a balloon payment at a specified rate.'' What are these?
Question: 3
''An incoming wire transfer with instruction to pay the beneficiary upon presentment of proper identification. The beneficiary usually does not maintain a checking or savings account with the paying financial institution.'' This definition refers to:
Question: 4
''A negotiated offering in which a new issue of municipal securities is sold on an agency basis by a placement agent directly to institutional or private investors rather than through an offering to the general investing public'' is referred as:
Question: 5
''Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments.'' This statement best explains one of the following principles:
