Bank Audit

Calculate Drawing Power if :-

Total Stock 100

Insured Stock 60%

Net Eligible Debtors 50

Ineligible Debtors 20

Margin 50%

• 45

• 55

• 35

• 75

A Cash Credit account shall be classified as out of order if:

• The outstanding loan is less than the Drawing Power

• The outstanding loan is more than the Drawing Power for 45 days continously

• The outstanding loan is less than the Drawing Power but there are no credits for 90 days continously

• Both (B) & (C)

Kalani & Co. statutory auditor of SBI has classified one of the loan as irrecoverable when it became overdue by 90 days. SBI shall classify it as:

• Sub-Standard Asset

• Doubtful Asset

• Loss Asset

• Standard Asset

Who among the following is eligible for applying for bank audits with ICAI?

• CA firm having 5 partners

• CA firm having 4 active partners

• CA firm having 10 partners half of them are active partners

• None of the above

Harvesting period of short duration crop is:

• 2 year

• 1 year

• 4 year

• 1.5 year

Modified Interest Subvention Scheme is eligible for crop loans upto :

• 2 lakh

• 1.5 Lakh

• 3 lakh

• .50 lakh

What are "Loss Assets" in banking?

• Accounts that have been fully recovered by the bank.

• Accounts identified as non-recoverable and written off.

• Accounts identified by banks, auditors, or RBI as non-recoverable but not yet written off.

• Accounts that are fully secured and performing well

If the realizable value of security falls below 50% of the loan amount then loan is classified as a 

• Loss Asset

• Doubtful Asset immediately

• Standard Asset

• Sub Standard Asset

Which of the following statements is TRUE about LFAR?

• LFAR replaces the statutory audit of banks

•  LFAR is an independent report and does not form part of the audit report

•  LFAR is only applicable to rural banks

• LFAR focuses only on advances and deposits

Which regulatory body prescribes the LFAR format for bank audits?

• SEBI

• ICAI

• RBI

• IRDAI