Page 76 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs
CHAPTER 10 AUDIT OF BANKS

Part 1 - BANK AUDIT

BA.1 #Unique SM21
Which of the following is fund based advance?

a) Term loans
b) Cash credits,
c) Demand Loans
d) All of the above

BA.2 SM21

Which of the following is not classification of NPA?
a) Impaired
b) sub standard
c) doubtful
d) Loss

BA.3 SM21

Regulating body in case of banks is:
a) SEBI
b) IRDA
c) RBI
d) ICAI

BA.4 #Unique N19M

Which of the following is correct:
a) Sub-section (1) of section 30 of the Banking Regulations Act, 1949 requires that the balance
sheet and profit and loss account of a banking company should be audited by a Firm of
Chartered Accountants only.
b) Sub-section (1) of section 30 of the Banking Regulations Act, 1949 requires that the balance
sheet and profit and loss account of a banking company should be audited by a person duly
qualified under any law for the time being in force to be an auditor of companies.
c) Sub-section (1) of section 30 of the Banking Regulations Act, 1949 requires that the balance
sheet and profit and loss account of a banking company should be audited by a CAG Auditor
only.
d) Sub-section (1) of section 30 of the Banking Regulations Act, 1949 requires that the balance
sheet and profit and loss account of a banking company should be audited by a by a person
duly qualified under Banking Law.

BA.5 #Unique M19M

Which of the following is correct in case of Banks:
a) The policy of income recognition should be subjective.
b) The policy of income recognition should be objective and based on record of recovery rather
than on any subjective considerations.
c) The policy of income recognition should be objective.
d) The policy of income recognition may be objective or subjective.

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