One of the Key Tasks of Bank Auditors Is to Consider

question 8

Multiple Choice

One of the key tasks of bank auditors is to consider the amount of the loan loss reserve.When developing a model to estimate the current year's loan loss reserve amount,which of the following would be least likely to be included as an independent variable?

• A) Original loan approval amount
• B) Customer loan history
• C) Current aged loans
• D) Collections success

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Definitions:

Automatic

Operating by itself with minimal or no human intervention, often referring to machinery, systems, or processes.

Double-Entry Bookkeeping System

An accounting method that records each transaction twice, once as a debit in one account and once as a credit in another, to ensure financial records balance.

Single-Entry System

A basic accounting method where each transaction is entered only once, either as an income or expense, making it less complex but more prone to errors than double-entry systems.

Staff Time

The amount of working hours dedicated by employees towards their job tasks.