Question

When conducting a compliance review of charge-offs and other losses the compliance officer should:

a. Set up a payment schedule for repayment of the loss by the senior officer.
b. Determine if there is an internal control weakness which led to the loss.
c. Determine if the customer involved can cover the charge-off or loss.
d. Notify the media of the loss.

Answer 1

The compliance officer should focus on determining if there is an internal control weakness which led to the loss in a compliance review of charge-offs and other losses.

Step-by-step explanation:

When conducting a compliance review of charge-offs and other losses, the compliance officer should focus on determining if there is an internal control weakness which led to the loss.

This involves assessing the policies, procedures, and systems in place and identifying any gaps or deficiencies that may have allowed the loss to occur. By identifying and addressing internal control weaknesses, the organization can reduce the risk of future losses.

Setting up a payment schedule for repayment of the loss by the senior officer or determining if the customer involved can cover the charge-off or loss may be relevant in certain situations, but they are not the primary focus of a compliance review.