An auditor is reviewing a bank's Allowance for Credit Losses (ACL) methodology under the Current Expected Credit Losses (CECL) standard. The auditor discovers that the historical loss data used in the model excludes loans from a recently acquired portfolio with a historically higher loss rate. Which of the following audit conclusions is most appropriate?
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A
The exclusion of relevant historical data may lead to an understatement of the required ACL.
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B
The ACL model is acceptable as long as it incorporates reasonable and supportable forecasts.
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C
The acquired portfolio can be excluded until three years of performance data have been accumulated.
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D
The bank's qualitative adjustments are sufficient to compensate for any data omissions.