CAIIB · ABM · Chapter 27

Compliance Audit (Study Material)

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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One-liners from this chapter

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Q

What is Compliance Audit?

A

is the independent assurance mechanism that verifies whether the bank is following every applicable law, RBI direction, internal policy and disclosure norm in letter and spirit.

Q

The Banking Regulation Act, 1949?

A

Sec 29 (form of accounts), Sec 35A (RBI directions), Sec 56 (co-op banks).

Q

The Companies Act, 2013 + Companies Rules, 2014?

A

Governance, audit and disclosure norms applicable to banking companies.

Q

Indian Accounting Standards (Ind AS / AS)?

A

Notified under Companies (Accounting Standards) Rules, 2006 / 2021.

Q

RBI Guidelines for Disclosures in Financial Statements?

A

Master Direction on Presentation & Disclosures (Aug 2021, latest amendments 2026).

Q

RBI Guidelines for Basel III Requirements?

A

Pillar 3 disclosures on capital, risk and leverage.

Q

Authority & Stature — RBI Requirement / Why It Matters?

A

RBI Requirement: Sufficient authority, stature, independence and resources within the bank.; Why It Matters: Stops business heads from influencing audit opinions.

Q

HIA Profile — RBI Requirement / Why It Matters?

A

RBI Requirement: Senior executive with ability to exercise independent judgement.; Why It Matters: Audit quality depends on the seniority and judgement of HIA.

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