Page 79 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

BA.18 N22M
The term “Drawing Power” is associated with which of the following facilities as sanctioned by any
Bank:

a) Letter of Credit
b) Term Loan
c) Staff Advances
d) Cash Credit Limit

BA.19 N22M
You are part of an engagement team conducting statutory audit of branch of a nationalized bank. It
is noticed that branch has sanctioned a cash credit limit for meeting working capital requirements
to a proprietary firm. The proprietor has also mortgaged his residential house in the city by
depositing title deed with branch. Keeping in view above, consider the following table: -
Column X Column Y
(1) Stocks of firm (A) Primary Security
(2) Residential house (B) Secondary security
(3) Mode of security creation for residential house (C) Registered Mortgage
(4) Debtors of firm (D) Equitable Mortgage
(5) Mode of security creation for stocks and debtors (E) Collateral security
(F) Hypothecation
Identify the most appropriate combination by matching Column X with Column Y: -
a) 1-A, 2-B,3-D,4-A,5-C
b) 1-A,2-E,3-D,4-A,5-F
c) 1-A,2-B,3-C,4-B,5-D
d) 1-A,2-E,3-D,4-B,5-D

BA.20 N23M
Which of the following statements is true regarding financial statements of a bank?
(a) Financial statements of a bank are to be prepared in accordance with Third Schedule to Banking
Regulation Act, 1949.
(b) Financial statements of a bank are to be prepared in accordance with Schedule III of Companies
Act, 2013.
(c) Financial statements of a bank are to be prepared in accordance with Schedule II of Reserve
Bank of India Act, 1934.
(d) Financial statements of a bank are to prepared in accordance with format prescribed by
Comptroller and Auditor General of India.

BA.21 SM23
Which of the following is included in “Interest Earned” in Profit & loss A/c of a bank?
a) Discount on Bills
b) Loan Processing fees
c) Commission on bills for collection
d) Credit Card Fees

BA.22 SM23
While auditing advances of a bank as statutory auditor, which of the following is not a likely concern
of auditor?

a) Appropriate documentation of advances

b) Ensuring budgeted targets of advances given by bank management
c) Compliance of sanctioned terms and conditions
d) Operations in advance accounts

www.auditguru.in 73 | P a g e