The Table Below Shows the Data (In Millions) for Wells

question 378

Multiple Choice

The table below shows the data (in millions) for Wells Fargo Bank in September 2017 and September 2018. Suppose that the desired reserve ratio is 3 percent. The data show that Wells Fargo

• A) the desired reserve ratio did not change.
• B) had fewer unplanned reserves in 2017.
• C) the reserve ratio increased as loans increased.
• D) had fewer unplanned reserves in 2018.

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Definitions:

Establishment of Responsibility

An internal control principle focusing on assigning specific responsibilities to particular employees to reduce errors and fraud.

Segregation of Duties

An internal control measure where no single individual is given too much responsibility in areas of financial reporting, transaction processing, or asset management to prevent fraud and errors.

Documentation Procedures

The methods and practices used for creating, managing, and safeguarding documents within an organization.

Physical Controls

Security measures implemented to protect tangible property, assets, or inventory from damage or unauthorized access.