CA Inter Audit – Audit of Banks MCQs

Functioning of Banking industries in India is regulated by _______________

Who is responsible for development and supervision of constitution of Indian financial system?

RBI has power to _____________________

No bank can commence the business of banking or open new branch without obtaining __________________

Discussion regarding Bank environment, internal control, and also the potential for material misstatements of the financial statements; should be done at which stage of an audit?

The policy of Income recognition must be _______________.

The policy of Income recognition must be on record of ______________ rather than _______________.

Income from NPA is not recognised on accrual basis but is booked as income only when it is actually received. This statement is ________________

Every banking company is required to prepare a balance sheet and a profit and loss account in forms set out in the ___________ schedule to the act as near thereto as the circumstances admit.

Which form of the Third Schedule to the banking regulations Act, 1949, contains the form of balance sheet?

Which form of the Third Schedule to the banking regulations Act, 1949, contains the form of profit and loss?

Every banking company needs to comply with the disclosure requirements under the various accounting standards. This statement is _____________

The auditor of banking companies is to be appointed by ___________________

The auditor of banking companies is to be appointed by shareholders at ____

Auditor of a nationalised bank is to be appointed by ______________

In either case, approval of ________ is require before appointment of auditor.

Auditors of SBI are to be appointed by ____________ in consultation with __________.

Auditors of Subsidiaries of SBI, are to be appointed by ___________________

Auditor of regional rural bank shall be appointed by ___________________ with the approval of ______________.

The remuneration of auditor of a banking company other than nationalised bank or SBI is to be fixed accordance with the provision of ________________________

Remuneration of auditor of Nationalised banks or SBI is to be determined by ______________ in consultation with ____________

The auditor of a banking company, nationalised bank, state bank of India, subsidiary of India or regional rural bank has the same powers as those of a company’s auditor in the matter of access to the books, accounts, documents and vouchers. This statement is _____________

In the case of nationalised bank and SBI, auditor is required to make report to the __________.

All banking companies are requiring to report as per the provision of CARO – 2020. This statement is ____________-

What is the full form of LFAR?

The matters which the banks require their auditor to deal with in LFAR have been specified by ________________

What is the due date of LFAR?

The RBI issued a circular relating to implementation of recommendation of committee on legal aspects of Bank Frauds applicable to all scheduled commercial banks excluding ________________.

RBI has advised that banks, before appointing their statutory central/branch auditor, should obtain a ________________

A chartered accountant in practice cannot accept position as auditor previously held by another chartered accountant without ___________

How can we classify advances as per RBI prudential norms?

How can we classify advances based on sector wise?

Primary securities also known as –

_________________ is effected by a mere delivery of title deeds or other documents of title with intent to create security thereof.

NPA is a loan or an advance where, interest and/or installment of principal remain overdue for a period of more than ___________ in respect of term loan.

NPA is a loan or advance where, the accounts is _______________ in respect of OD/CC.

An account should be treated as ________________ if the outstanding balance remains continuously in excess of the sanctioned limit/drawing power.

Sub standard assets would be one, which remained NPA for a period less than or equal to _______________.

How much provision is required in case of sub standard assets?

Doubtful assets would be one, which has remained in the substandard category for a period of _____________.

________________ would be one, where loss has been identified by the bank or internal or external auditors or the RBI inspection but the amount has not been written off wholly.

How much provision is required in case of loss asset?

How much provision require for secured doubtful asset up to 1 year?

How much provision require for secured doubtful asset for 1 to 3 years?

How much provision require for secured doubtful asset for more than 3 years?

How much provision require for unsecured doubtful asset?

Asset classification would be borrower-wise and not facility-wise. This statement is ______________

Which of the following is fund based advance?

Which of the following is not classified as NPA?

Erosion in the value of security can be reckoned as significant when the realisable value of the security is _______________________ of the value assessed by the bank or accepted by the bank or accepted by RBI at the time of last inspection, as the case may be.

Erosion in the value of security can be reckoned as significant when the realisable value of the security is less than 50% of the value assessed by the bank or accepted by the bank or accepted by RBI at the time of last inspection, as the case may be. Such NPA may be straight-away classified under ____________________.

If the realisable value of the security, as assessed by the bank/approved valuer/ RBI is __________________________ of the outstanding in the borrowal accounts, the existence of the security should be ignored.

If the realisable value of the security, as assessed by the bank/approved valuer/ RBI is less than 10% of the outstanding in the borrowal accounts, the existence of the security should be ignored and the asset should be straight away classified as _________________

___________________ need not be treated as NPAs, provided adequate margin is available in the accounts.

Long duration crops would be crops with crop season _______________.

A loan granted for shorter duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for __________.

A loan granted for long duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for ___________.

Which account from the following should be treated as irregular?

RBI has advised that in respect of any income which exceeds ______% of the total income of the bank if the income is reckoned on gross basis or ______% of the net profit before taxes if the income is reckoned net of costs, should be considered on accrual as per AS – 9.