Question: 1
Financial institutions regularly identify uncollectible and charge them off against the reserve for loan losses. Auditors should ensure that the institution has developed adequate criteria for
charge-offs and select a sample of charged-off loans whether they are handled properly.
Another useful test is:
Question: 2
The ''combined ratio'' of an insurance company is the ratio from combining which of the following?
1. The ''loss ratio.''
2. The ''other underwriting expense ratio.''
3. The ''expense ratio.''
4. The ''IBNR.''
Question: 3
Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals will ''____________'' These amounts until paid.
Question: 4
Financial institutions regularly identify uncollectible and charge them off against the reserve for loan losses. Auditors should ensure that the institution has developed adequate criteria for
charge-offs and select a sample of charged-off loans whether they are handled properly.
Another useful test is:
Question: 5
A special servicer is the servicer who assumes servicing responsibilities when a loan goes into default and conducts the work-out ''or foreclosure process. There are various scenarios typical for determining special servicers; as mentioned below, EXCEPT:
