SCOPE, STATUTORY PROVISION & COMPLIANCE
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Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary statute governing the audit of nationalised banks in India?
The audit of nationalised banks is governed by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, read with the Banking Regulation Act, 1949.
What is the primary objective of statutory audit compliance in banks?
To ensure financial statements reflect true and fair position.
Which authority appoints the statutory auditors of a public sector bank?
The statutory auditors of a public sector bank are appointed by the bank concerned with prior approval of the Reserve Bank of India, as per Section 30 of the Banking Regulation Act, 1949.
Which Act defines the scope of audit for cooperative banks in India?
The Banking Regulation Act, 1949 and respective State Cooperative Acts.
What is the scope of statutory audit under the Banking Regulation Act, 1949?
Statutory audit covers examination of the balance sheet, profit and loss account, and all books of account to verify that financial statements give a true and fair view of the bank's affairs.
What is meant by 'compliance audit' in the banking sector?
Verifying adherence to regulatory guidelines, laws, and internal policies.
Under which section of the Banking Regulation Act is the form and content of bank balance sheets prescribed?
Section 29 of the Banking Regulation Act, 1949 prescribes that every banking company must prepare its balance sheet and profit and loss account in the forms set out in the Third Schedule.
Under which RBI circular are banks required to submit compliance reports to auditors?
RBI's Master Direction on Statutory Audit and Compliance framework circulars.
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