1. 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
CA Intermediate Paper 5
Audit of Banks MCQ
Chapter 10 • 16 Questions from ICAI Study Material
Questions
16
Est. Time
24 min
Source
ICAI Book
Question 1 of 16 0 correct | 0 wrong
Explanation:
Common Mistake:
Key Concept:
Exam Tip:
Keyboard: 1-4 to select, ← → to navigate
Sample Questions: Audit of Banks
Preview 4 of 16 questions from Chapter 10
2. 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
3. Any amount due to the bank under any credit facility is ‘overdue’ if: -
A) it is not paid on the due date fixed by the bank ✓
B) it is not paid within 30 days of due date fixed by the bank
C) it is not paid within 60 days of due date fixed by the bank
D) it is not paid within 90 days of due date fixed by the bank
Correct/Incorrect
4. RBI has been entrusted with the responsibility of regulating the activities of commercial banks only.
Correct
Incorrect ✓
Explanation: RBI has been entrusted with the responsibility of regulating the activities of commercial and other banks. All the Banks and even NBFC’s fall under the regulatory function of RBI.