SOFE
AFE · Question #179
Direct serving loans method requires a system of good internal control and requires that the functions be split between the Accounting Department and the Investment Department. In such a case the…
The correct answer is D. Its records may or not provide the needed data to support this reporting function. See the full explanation below for the reasoning.
Question
Direct serving loans method requires a system of good internal control and requires that the functions be split between the Accounting Department and the Investment Department. In such a case the Accounting Department is responsible for all of the following EXCEPT:
Options
- ASupplying the Investment Department with correct data and reports that summarize all loan transactions
- BAlerting the Investment Department promptly whenever an exception to the normal processing routine occurs
- CFor design, maintenance, and accuracy of accounting records, for periodic management and exception reports, and for statutory statement preparation
- DIts records may or not provide the needed data to support this reporting function
How the community answered
(29 responses)- A10% (3)
- B3% (1)
- C3% (1)
- D83% (24)
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