Direct Serving Loans Method Requires a System of Good Internal

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. The Investment Department is responsible for promptly supplying the Accounting Department with:

A) Accounting data on new loans
B) Resolving few exceptions reported to it by the Accounting Department, i.e., when a borrower defaults on a loan payment
C) Data related to changes in existing loans, which affects the accounting function
D) Alerting the Investment Department promptly whenever an exception to the normal processing routine occurs

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