Question

An engagement communication relating to an engagement performed at a bank categorizes observations as 'deficiencies' for major problems and 'other areas for improvement' for less serious problems. Which of the following excerpts is properly included under 'other areas for improvement?'

1) many secured loans did not contain hazard insurance coverage for tangible property collateral
2) the bank is incurring unnecessary postage cost by not combining certain special mailings to check account customers with the monthly mailing of their statements
3) loan officers also prepare the cashier's checks for disbursement of the loan proceeds
4) at one branch a large amount of cash was placed on a portable table behind the teller lines

Answer 1

'Other areas for improvement' in an engagement communication at a bank refers to less serious problems. Among the given excerpts, the one properly included under 'other areas for improvement' is the bank incurring unnecessary postage cost by not combining certain special mailings to check account customers with the monthly mailing of their statements.

Step-by-step explanation:

'Other areas for improvement' in an engagement communication at a bank refers to less serious problems. 'Other areas for improvement' in an engagement communication at a bank refers to less serious problems. Among the given excerpts, the one properly included under 'other areas for improvement' is the bank incurring unnecessary postage cost by not combining certain special mailings to check account customers with the monthly mailing of their statements.

Among the given excerpts, the one properly included under 'other areas for improvement' is option 2) the bank is incurring unnecessary postage cost by not combining certain special mailings to check account customers with the monthly mailing of their statements. This observation highlights a problem that can be addressed and improved upon by the bank.