Bank Audit & Inspection – Quiz 1

Bank Audit & Inspection is the Eleventh Unit (Unit 11) under Module A: Accounting Principles and Processes of Paper – III (Accounting & Financial Management for Bankers)

If you are appearing for the Upcoming JAIIB Exams, it is important to understand the fundamental concepts of the Topics and clear your doubts. We have prepare and collected some fundamental questions and answers in the form of MCQ Questions and Answers arranged into multiple Quizzes having 10 Questions in each Quiz. It can help you to understand the topics. A solid fundamental understanding will build your confidence and encourage you to think critically and enables you to answer the JAIIB Questions correctly in the Exam and increase your chances to pass the exam with flying colors. It is advisable to practice these Questions and Answers on regular basis to raise your confidence Level.

Practice MCQ Question and Answer – Bank Audit & Inspection


Quiz 1

1. Which entity issues the book “An Introduction to Indian Government Accounts and Audit” ?





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Answer is (c)
The Comptroller and Auditor General of India

2. What are the incidental objectives of auditing ?

  1. Ensuring complete transparency in financial reporting
  2. Detection and prevention of errors and frauds
  3. Maximizing profits for the company
  4. Providing financial advice to shareholders




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Answer is (a)
Detection and prevention of errors and frauds

3. Which chapter of the Companies Act, 2013, deals with the appointment, removal, eligibility, and duties of auditors ?





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Answer is (c)
Chapter X

4. How has the role of audit shifted with the increase in the size of companies and volume of transactions ?





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Answer is (d)
The emphasis is now on ascertaining whether the accounts are true and fair.

5. What is the emphasis of audit procedures in a Computerised Information System environment ?





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Answer is (b)
Auditing through the computer

6. What is the role of Computer Aided Audit Techniques (CAATs) in the audit process ?

  1. Ensuring compliance with regulatory standards
  2. Improving audit effectiveness and efficiency
  3. Processing data of audit significance
  4. Identifying potential areas of financial risk




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Answer is (b)
Processing data of audit significance and Improving audit effectiveness and efficiency

7. What role has data analysis assumed in auditing with the advent of technology ?





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Answer is (d)
Increased importance due to technological advancements and emerging risks

8. Which of the following has introduced Risk-Based Internal Audit (RBIA) system in Scheduled Commercial Banks ?





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Answer is (a)
Reserve Bank of India

9. Historically, what was the primary focus of internal audits in banks ?





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Answer is (b)
Transaction testing

10. What aspect of auditing does Chapter X of the Companies Act, 2013 primarily focus on ?

  1. Auditing standards
  2. Auditor qualifications
  3. Shareholder rights
  4. Corporate governance




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Answer is (a)
Auditing standards and Auditor qualifications


Quiz Numbers


Read More: MCQ Type Questions and Answers from Paper – III (Accounting & Financial Management for Bankers)


Module A: Accounting Principles and Processes

Module B – Financial Statements and Core Banking Systems

  • Balance Sheet Equation
  • Preparation of Final Accounts
  • Company Accounts – I
  • Company Accounts – II
  • Cash Flow & Funds Flow
  • Final Accounts of Banking Companies
  • Core Banking Systems & Accounting in Computerised Environment

Module C – Financial Management

  • Financial Management – An Overview
  • Ratio Analysis
  • Financial Mathematics – Calculation of Interest & Annuities
  • Financial Mathematics – Calculation of YTM
  • Financial Mathematics – Forex Arithmetic
  • Capital Structure and Cost of Capital
  • Capital Investment Decisions/Term Loans
  • Equipment Leasing/Lease Financing
  • Working Capital Management
  • Derivatives

Module D – Taxation and Fundamentals of Costing

  • Taxation: Income Tax/TDS/Deferred Tax
  • Goods & Services Tax
  • An Overview of Cost & Management Accounting
  • Costing Methods
  • Standard Costing
  • Marginal Costing
  • Budgets and Budgetary Control