MCQ for CA Intermediate Audit - Chapter 12 - Audit of Banks

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 6 - Auditing and Assurance - Chapter 12: Audit of Banks - For Practice relevant for May/November 23 Examinations

Q:1 As per section ___________ of the Banking Regulations Act 1949, every banking company shall prepare a balance sheet and profit and loss Account, in the Forms set out in third schedule.

1. 29
2. 129
3. 28

Answer: 1

Q:2 In addition to the audit report as per the statutory requirements, the auditors of public sector banks, private sector banks and foreign banks are required to furnish

1. Report on CARO
2. A long form audit report (LFAR)
3. Both (a) and (b)
4. Either of (a) or (b)

Answer: 2

Q:3 If Bank auditor, while performing his normal duties, comes across any fraud, he should report the matter to

1. The RBI
2. TCWG
3. Both (a) and (b)
4. Either of (a) or (b)

Answer: 3

Q:4 A non performing asset (NPA) is a loan or an advance where interest and/or installment of principal remain______ in respect of a term loan

1. Overdue for a period of more than 90 days
2. Overdue for a period of 90 days
3. Out of order
4. Irregular for a period of 180 days

Answer: 1

Q:5 The credit facilities backed by guarantees of _________ though overdue may be treated as NPA only when the government repudiates its guarantee when invoked

1. Central government
2. State government
3. Both (a) and (b)
4. Either of (a) or (b)

Answer: 1

Q:6 Net worth of borrower/guarantor __________ be taken into account for the purpose of treating an advance as NPA or otherwise.

1. Should not
2. Should
3. May
4. Any of these depending upon the discretion of management

Answer: 1

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