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
''A valid contract involves each party giving something of value. This exchange of value, or consideration, may take the form of money, action, or promise. For insurance contracts, the insured's consideration is the payment or premiums and a promise to fulfill the conditions of the contracts, and the insurer's consideration is the promise to pay after a loss occurs.'' This is related to an element in an insurance policy contract. It is known as:
Question: 3
Demand deposit account allows customers to transfer money through the use of:
Question: 4
Pension Benefit Guarantee Corporation (PBGC) insures ''Defined benefit plan'', so employees assume _____________ for any option they contribute.
Question: 5
Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals will ''____________'' These amounts until paid.
