02 Feb Internal Control ProceduresThe loan department in
Internal Control ProceduresThe loan department in a bank is subject to regulation. Internal auditors work for the bank toensure that the loan department complies with requirements. The internal auditors must verifythat each car loan file has a note signed by the maker, verification of insurance, and a title issuedby the state that names the bank as co-owner.Required1. Explain why the bank and the regulatory agency are concerned with these documents.2. Describe the internal control procedures that should be in place to ensure that these documentsare obtained and safeguarded.