An Internal Auditor for a Large Bank Is Reviewing the Collectability

question 190

Multiple Choice

An internal auditor for a large bank is reviewing the collectability of a loan that is secured by real property. The best evidence of the loan's collectability would be:

• A) A recent independent appraisal of the value of the real property.
• B) A document showing the loan committee's approval of the loan.
• C) The borrower's confirmation of the loan balance.
• D) A properly completed and signed loan application form.

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Definitions:

Fair

Equitable, just, and impartial treatment of all individuals, especially in contexts such as the workplace or legal matters.

Kind

Having or showing a friendly, generous, and considerate nature.

Trusting

The willingness to believe in the reliability, truth, ability, or strength of someone or something based on positive expectations of future behavior.

Spheres of Life

Represents the different areas or aspects of an individual's existence, such as personal, professional, social, and spiritual domains.