<<12345678910111213141516171819202122232425>> 1. What factors are considered in the selection of branches for random compliance testing?Size of the branchCompliance risk level assessed by regulatory focus, inherent risk, and bank exposureGeographical location of the branchEmployee satisfaction at the branchQuestion 1 of 25 2. What compliance area is particularly emphasized during random test checking at branch levels?Financial forecastingMarketing strategiesKYC/AML complianceEmployee training programsQuestion 2 of 25 3. What is the primary focus of inspections in fulfilling compliance obligations?Site visitsIdentifying root causes of problemsEnsuring risk-based complianceEnsuring internal complianceQuestion 3 of 25 4. How do audits differ from inspections in addressing compliance obligations?Audits focus on site visits while inspections address root causesAudits ensure compliance obligations are met and address root causes of problemsInspections solely fulfill compliance obligationsAudits focus on identifying problems without ensuring complianceQuestion 4 of 25 5. Which types of audits are commonly conducted in banking institutions?Site Audit, Personnel Audit, Financial AuditRisk Based Internal Audit, HR Audit, Financial AuditRisk Based Internal Audit, Concurrent Audit, Statutory & Tax AuditEmployee Satisfaction Audit, Marketing Audit, Financial AuditQuestion 5 of 25 6. Where do internal auditors typically report breaches/non-compliances within banks?To the Board of DirectorsTo the Chief Risk OfficerTo the Chief Compliance Officer at the Head officeTo the Regulatory AuthoritiesQuestion 6 of 25 7. How do risk management departments utilize audit reports in banks?They disregard audit reports for random sample testingThey use audit reports for improving internal processes onlyThey don't use audit reportsThey use audit reports for random sample testing of compliancesQuestion 7 of 25 8. What is the primary responsibility of the Audit Committee in a bank?Managing day-to-day operationsEnsuring compliance with external audits onlyProviding direction and overseeing the total audit functionAnalyzing marketing strategiesQuestion 8 of 25 9. What does the Audit Committee do concerning observations from statutory audits and inspections by the Reserve Bank of India?Disregard observationsTake no action on observationsFollow up on observationsRefer observations to the Board without actionQuestion 9 of 25 10. Why is the review of accounting policies and internal control systems important for the Audit Committee?To avoid accountability for irregularitiesTo minimize transparency in the bank's accountsTo fix accountability for detecting irregularitiesTo ensure transparency in the bank's accountsQuestion 10 of 25 11. What is the critical aspect of loan portfolio management highlighted by Loan Review?Marketing strategiesEffective loan processingPortfolio quality assessmentCost reduction strategiesQuestion 11 of 25 12. What does Loan Review assess concerning loans?Marketing outreachCompliance with external auditsLoan portfolio quality, individual loans, compliance, and credit risk managementEmployee satisfaction levelsQuestion 12 of 25 13. What purpose does Loan Review serve for management and the Board of Directors?Provides subjective opinionsOffers irrelevant dataProvides objective data and recommendationsFocuses on minimizing risksQuestion 13 of 25 14. Which phase of the loan review mechanism involves evaluating repayment terms and loan conditions?Credit InitiationLoan Approval ProceduresLoan StructuringNormal Loan MonitoringQuestion 14 of 25 15. What does the "Normal Loan Monitoring" phase of the loan review mechanism primarily entail?Reviewing action plans for seriously delinquent loansVerifying initial and ongoing documentationAssessing ongoing monitoring proceduresEvaluating eligibility and initial underwritingQuestion 15 of 25 16. Which phase of the loan review mechanism involves the assessment of management of bad loans and reporting?Problem in Loan ManagementCredit InitiationLoan Workout ManagementPost-Review ActionsQuestion 16 of 25 17. What is the post-review action concerning the report from loan review officials?The report is disregardedThe report is submitted to the competent authority for considerationLoan review officials take corrective actionLoan review officials keep the report for future referenceQuestion 17 of 25 18. During which phase is the assessment of eligibility, initial underwriting, and financial statements conducted?Loan Approval ProceduresLoan Workout ManagementCredit InitiationCredit/Collateral File DocumentationQuestion 18 of 25 19. What is a primary objective of Credit Audit concerning the credit portfolio?Reviewing large loan sanction processesImproving credit portfolio qualityProviding feedback on regulatory compliance onlyIndependently reviewing credit risk assessmentQuestion 19 of 25 20. Which aspect of credit activities does Credit Audit primarily review concerning regulatory adherence?Large loan sanction processesCredit risk assessmentCompliance with internal policies onlyProviding feedback on regulatory complianceQuestion 20 of 25 21. What is a key objective of an independent Credit Audit regarding credit risk?Reviewing large loan sanction processesIdentifying early warning signalsProviding feedback on staff skillsRecommending actions for better credit qualityQuestion 21 of 25 22. What does Credit Audit aim to do concerning credit administration and staff skills?Independently review credit risk assessmentReview large loan sanction processes and complianceImprove credit portfolio qualityRecommend actions for better credit quality, administration, and staff skillsQuestion 22 of 25 23. What aspect of credit activities does Credit Audit prioritize in its objectives?Providing feedback on regulatory complianceReviewing large loan sanction processesIndependently reviewing credit risk assessmentImproving credit portfolio qualityQuestion 23 of 25 24. What does the Credit Audit Department primarily do with credit audit reports?Analyzes findings and advises relevant departmentsManages responses and closes credit audit reportsFollows up with controlling authoritiesProcesses credit audit reportsQuestion 24 of 25 25. Who does the Credit Audit Department primarily inform about its findings?Controlling authoritiesTop managementRelevant departmentsAudit committeesQuestion 25 of 25 Loading...
