Examice

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Question 288

Which of the following actions is acceptable under the financial reporting regulations?

Attaching a narrative explanation by management of the reasons for a cease and desist order as a part of the annual disclosure

Attaching a copy of the bank's last safety and soundness examination to the annual disclosure

Including a statement that indicates that the bank's regulatory agency has reviewed the financial information

Using an unaudited financial statement for the past two years as an annual disclosure statement

Correct Answer: C

Including a statement that indicates that the bank's regulatory agency has reviewed the financial information is acceptable under financial reporting regulations. This practice provides assurance to stakeholders that the financial data has undergone scrutiny by the regulatory bodies, adding credibility to the disclosures. This is a common practice to ensure transparency and trust in financial reporting.

Discussion

Cam22Option: C

Under financial reporting regulations, it is acceptable for a bank to include a statement indicating that its regulatory agency has reviewed the financial information. This statement provides assurance to stakeholders that the financial information has undergone regulatory scrutiny.