Page 77 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

BA.6 M19M
You are at the planning stage for one of your firm’s client XYZ Bank for the year ended 31 March
2018. The bank is a commercial bank that provides a number of products and services to the general
public and other segments of the economy in the area of South Mumbai. You are assigned the audit

of one of the branches of XYZ Bank. The audit engagement team was called to have a detailed
discussion on the following matters. Which one of the following should not be included in the
discussion for the audit of banks?
a) Discuss on the error of last year in the application of accounting policies of the bank.
b) Discuss on the method of fraud if any perpetrated by the bank employee within particular
balances and/or disclosures
c) Discuss with the team the appointment and remuneration to be received on this bank audit.
d) Discuss the effect of the results of the risk assessment procedures on other aspects to decide
the nature, timing and extent of further audit procedures.

BA.7 SM21
A Ltd. has been assigned a Cash Credit limit of INR 20 lacs as against its Book Debts furnished as
security. What kind of Security creation is it?

a) Pledge

b) Mortgage
c) Assignment
d) Set-off

BA.8 SM21
Drawing Power in case of a Consortium advance is computed and allocated to member banks by the
a) Bank members proportionately
b) Lead bank
c) Borrower
d) Reserve Bank of India

BA.9 SM21
Engagement Team Discussions are usually done at which stage of Bank audit ?
a) Appointment
b) Developing an Audit Plan
c) Framing an Audit Programme
d) Issuing Audit Report

BA.10 SM21/M23M
In case of Frauds involving amount less than INR 1 crores , the auditor should report to the :-
a) Central Government
b) Reserve Bank of India
c) Bank’s Board/Audit Committee
d) Comptroller & Audit General

BA.11 #Unique SM21/M23M
Mrs. Reema has availed a Personal Loan for her Boutique of INR 5 lakhs and a Vehicle Loan to
purchase an Active Scooter for INR 60,000. She is regular in depositing EMI of the Active Loan but
has not made any payments towards the Personal Loan due to low business during the year. In this
case , which of the following facilities should be categorized as NPA ?

a) Active Loan
b) Personal Loan

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