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 66 rapid-fire Q&A cards.
What is the primary objective of bank audit?
The primary objective of bank audit is to examine and verify the accuracy of financial statements, ensure compliance with RBI guidelines and statutory requirements, and assess the adequacy of internal controls.
What is the minimum frequency prescribed for concurrent audit in banks?
Concurrent audit is conducted on a continuous or daily basis.
Which authority mandates statutory audit of public sector banks in India?
The Reserve Bank of India (RBI) in consultation with the Central Government mandates statutory audit of public sector banks under the Banking Regulation Act, 1949.
What is the full form of RBIA in the context of bank audit?
RBIA stands for Risk-Based Internal Audit.
What is a Long Form Audit Report (LFAR) in bank audit?
LFAR is a detailed report submitted by statutory auditors to the bank's Board of Directors covering specific areas such as credit, investments, deposits, and internal controls as prescribed by RBI.
What does the term 'audit trail' mean in bank IS audit?
Audit trail is a chronological record of all system transactions.
What does 'concurrent audit' mean in banking?
Concurrent audit is a system of audit conducted simultaneously with the transactions, enabling near real-time detection of errors and irregularities at branch level.
What is 'off-site surveillance' conducted by RBI on banks?
Off-site surveillance is monitoring banks remotely using submitted data.
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