SOFE Exam AFE Topic 1 Question 5 Discussion

Actual exam question for SOFE's AFE exam

Question #: 5
Topic #: 1

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:

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

CThe design, maintenance, and accuracy of accounting records, for periodic management and exception reports, and for statutory statement preparation

DIts records may or may not provide the needed data to support this reporting function

Show Suggested Answer

Suggested Answer: D

by Stephane at May 04, 2022, 04:25 PM

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