Test Procedures:

1. Inquired with the loan officer regarding loans.

Loan officer
Position
Years in the Bank
Seminars and or trainings

How do I get a loan from the bank?

Requirements
Types of Loans

Interest rates used for loans released in 2018

Below those rates? Process of approval

Loan Portfolios and Titles Custody

Allowance computations
Who?
How?
DOSRI Process and Lists
Process and Lists
Interest rates
CASA
Industries catered to
Types of loans
Secured and unsecured
Past due loans

Collection Process and Policies

Sales Contracts Receivable
Process and Lists
Reports - Who? How often?
Interest income computation
Amortization schedule how
Loan verification
Appraisal ( how often)
How do they assess the:
Character
Capital
Capacity
Collateral
Conditions
Write-offs of Loans

Loan classification
Who?
Frequency
Acctg software used
Noted weakness
Restructured loans?
Process
How approved?
Loans granted outside the normal credit process?

2. Inspection of Credit Policies.

Target Market Segments

Credit Concentration and Limits

Credit Granting Process

*Additional Inquiries
1. Are loans covered by collaterals?
2. Where are the collaterals located?
a. Titles
b. Movable Collaterals
3. Are there any unrecorded transactions for the period end September 30, 2019?

4. Loan Requirements

5. What are the Bank charges collected from borrowers?

6. Availability of loans
7. Are there any foreign loan transactions?
Test Results:

Interviewer: Aleah D. Garin, Audit Associate Date and Time: March 2, 2020
Interviewee: Location:
 Reference

ime: March 2, 2020

 NOTE: During interview, emphasize that you are asking these questions to determine their familiarity and how much they k
NOTE: Always ask about the name of the intervieweeand his/her reliever and ask permission to document his/her name so
NOTE: In inspecting sensitive information, please disclose that it is a necessary procedure we have to conduct in order for u

Suggested Inquiries:

PHASE
1 Interviewee Info

2 General

3 Application

4 Approval

5 Disbursement

6 Collection

7 Post-Release Checking
8 Schedules to Request
g interview, emphasize that you are asking these questions to determine their familiarity and how much they know about their policies and
ys ask about the name of the intervieweeand his/her reliever and ask permission to document his/her name so that we will comply with the
pecting sensitive information, please disclose that it is a necessary procedure we have to conduct in order for us to gather sufficient appropr

Name of the Interviewee

Designation in the Bank
Reliever
Years in Service
Educational Background
First Job?
Previous Posts?

Application or system being used

Type of Loans being offered

Application Acceptance
Checking of Submitted Application
Credit Committee
Appraisal of Collateral

How many approval does it take?

How long does it normally take before the loan is approved?
How are borrowers notified when their application is approved?

Who disburses the loan proceeds?

How are loan proceeds disbursed?
What documents are prepared during disbursement? (vouchers, etc)

Main form of collection notice

Other means of enforcing collection
Who receives loan payments?
Who records loan payments?

Who files the submitted documents?

Where are portfolios being kept?
Are photocopies attached on the portfolio?
Are utility checks being conducted?
What are the sanctions if the loan is not used as intended?

List of Requirements
CASA
Members of the BOD
Policy on Allowance for Credit Losses
Policy on Loans
Outstanding Balances at the end of each month for 2018
Policy on Reporting DOSRI Loans to BSP

Are all borrowers being prepared with Borrower's Risk Rating Scorecard
Policy on sending demand notice: 1, 2, 3
Assessment of Borrower's Ability to Pay
Minimum and Maximum Amount that can be granted to a borrower. Is there a policy
on granting amount based on BRR Rate?
Call Report, or any equivalent report
Relationship of Bela-O, Lourdes

Nature of Accounts Receivable

Recording of Interest Income
Nature of Fees and Commission
Nature of Recovery - Provision for CL on Loans and Receivables
 y and how much they know about their policies and processes.
ument his/her name so that we will comply with the Data Privacy Act.
o conduct in order for us to gather sufficient appropriate evidence for our audit, in order for us to comply with the provisions of the Data Pr

PROCESS
ply with the provisions of the Data Privacy Act. Be vigilant about this matter since the Organization has their own Data Privacy Officer.

PERSONS INVOLVED
Data Privacy Officer.