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mixer [17]
3 years ago
15

Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $10

0,000) may be approved by an individual loan officer, while larger loans (greater than $100,000) must be approved by a board of loan officers. Once a loan is approved, the funds are made available to the loan applicant under agreed-upon terms. Pacific Bank has instituted a policy whereby its president has the individual authority to approve loans up to $5,000,000. The president believes that this policy will allow flexibility to approve loans to valued clients much quicker than under the previous policy. As an intern auditor of Pacific Bank, how would you reposnd to this change in policy?
Business
1 answer:
Reptile [31]3 years ago
6 0

Answer:

Explanation:

As auditor, I may not agree with the policy that is been changed. It

is believed that, by default there is a normal loan risk that is been associated with the business of Pacific Bank. A way to help reduce this risk is to carefully asses the loan applications. Loans that are large has greater risk in the event of default compared to smaller loans. Therefore, it is reasonable to have more than several individual involved in decision making give a loan that is very big. In addition, loans should be given base on those that meet the requirements, it should not be on the base on favoritism or people with relationship with bank president. Giving the bank president the power to give huge loans may lead to him granting loans to people who he is familiar with, without the required due process been followed. This may cause the bank to be credit exposed risks that are poor.

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Oriole Company bought equipment for $420000 on January 1, 2021. Oriole estimated the useful life to be 4 years with no salvage v
morpeh [17]

Answer:

$63,000

Explanation:

Straight line method charges a fixed amount of depreciation for the period the asset is used in the business.

Depreciation Expense = (Costs - Salvage Value) ÷ Estimated useful life

therefore,

2021

Depreciation Expense = $420000 ÷ 4 = $105,000

2022

One month has already expired, therefore the remaining useful life out of 6 years will be 5.

New Depreciable Amount = Cost - Accumulated depreciation to date

                                            = $420,000 - $105,000

                                            = $315,000

Depreciation expense = $315,000 ÷ 5 = $63,000

Conclusion :

the revised depreciation expense for 2022 is $63,000

6 0
3 years ago
Ramesh works in a small civil-society organization with the mission to fight child labor in india. His organization has identifi
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"A multinational organization known for responsible labor standards" has the most adequate resources to collaborate with Ramesh in the achievement of this goal.

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6 0
3 years ago
Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.40 a share. The company has promised to
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Answer:

The maximum amount that should be paid for one share of this stock today is $15.29

Explanation:

The price of a stock which pays a constant dividend forever can be calculated using the zero dividend growth model of the Dividend Discount Model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends from the stock discounted using the required rate of return on stock.

The formula for price under zero growth model of DDM is,

Price today (P0) = Dividend / required rate of return

P0 = 2.4 / 0.1570

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5 0
3 years ago
True/False: Santiago is the HR director of Illumin Media, a mid-sized organization. He notices that the proportion of minorities
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Answer and Explanation: The given case/scenario is true, since in this particular case the HR director tends to opt for recruiting methods under which the application will further reach a larger population. The recruiting method is done by contacting several professional association and thus outsourcing this task. This method is efficient and effective .

3 0
3 years ago
Your résumé/CV is an essential component of your professional portfolio. How is it used to convey your professional identity pri
emmainna [20.7K]

Answer:

The interpretation including its respondent is characterized throughout the explanation section following the table.

Explanation:

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