Bank Audit & Inspection
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 69 rapid-fire Q&A cards.
What are the two core objectives of bank audit?
Confirm true and fair view of P&L and Balance Sheet; verify compliance with regulatory provisions.
Define Risk-Based Internal Audit (RBIA).
Internal audit evaluating both transaction accuracy and adequacy of risk-management procedures and controls.
When was RBIA introduced in Scheduled Commercial Banks by RBI?
27 December 2002 via RBI circular.
Name four pillars of RBIA framework.
Board-approved policy; functional independence; effective communication channels; adequate audit resources.
What is the minimum tenure prescribed for Head of Internal Audit?
Minimum 3 years; premature transfer/removal requires Board approval.
Can internal audit function be outsourced?
No; outsourcing prohibited. Specialised experts may assist on contractual basis only.
Who does HIA report to in Indian banks?
Audit Committee of Board or MD & CEO / Whole-Time Director.
What is the scope of Information Systems Audit?
Evaluate IT planning, operating processes, internal controls, and identify deficient controls needing correction.
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