If a Bank Does Not Respond to a Bank Confirmation

question 49

Multiple Choice

If a bank does not respond to a bank confirmation request, the auditor would most likely:

Know the consumer rights and creditor limitations under the Fair Credit Billing Act.

Understand the liability and consumer rights in case of unauthorized credit card charges.

Identify the legislation aimed at preventing credit and loan discrimination practices.

Understand the role and the enforcement powers of the Federal Trade Commission in consumer protection.

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Definitions:

Personal Property

Tangible, movable goods (chattels) and intangible claims (choses in action).

Chattels

Tangible, movable personal property that can be measured and weighed; also known as goods.

Fixtures

Items that are attached to a property in such a way that they become part of the property and cannot be removed without permission.

Continuing Guarantee

A provision in a guarantee allowing the creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.