You have been talking with one of your close col- leagues regarding graduate school. Your colleague has decided to go to graduate school to obtain additional training to become a bank loan officer. You have de- cided to go to graduate school to further develop your skills for entry into the auditing profession. The discussion eventually focuses on the relative worth of one subject matter to the career of the other area of study. 

Required 

a. Briefly explain why additional knowledge in the area of finance and banking, or other functional areas of business, will be important in developing your skills as an auditor. 

b. Briefly explain to your colleague why knowledge of the audit function would be useful in pursuing a career as a bank loan officer. 

c. How might an internal audit department perform (1) an operational audit of procedures related to the loan function of a bank and (2) a compliance audit of the loan function of the bank?