Audit - 16. page

Deferred Tax Liability on Special Reserve created under Section 36(1)(viii) of the Income Tax Act, 1961 RBI vide its Circular No. DBOD.No.BP.BC.77/21.04.018/2013-14 on “Deferred Tax Liability on Special Reserve created under […]

Appropriations Under this head, the net profit/ loss for the year as well as profit/ loss brought forward have to be shown. The appropriations of the aggregate thereof are to […]

Audit Approach and Procedures Income In carrying out an audit of income, the auditor is primarily concerned with obtaining reasonable assurance that the recorded income arose from transactions, which took […]

Interest Income As a measure of control and also to ensure that the legal remedies against defaulting borrowers are not adversely affected, banks commonly follow the procedure of recording interest […]

Miscellaneous Income This head generally includes following items of income: (a) rental income from bank’s properties; (b) security charges; (c) insurance charges recoverable from customers; (d) Other income from carrying […]

Expenses Expenditure is to be shown under three broad heads: interest expended; operating expenses; and provisions and contingencies.

Interest Expended The following items are included under this head: (a) Interest on Deposits: This includes interest paid/ payable on all types of deposits including deposits from banks and other […]

Operating Expenses The following items are included under this head: (i) Payments to and Provisions for Employees: This item includes salaries and wages of staff, allowances, bonus, other staff benefits […]

Profit/Loss on Revaluation of Fixed Assets According to the Notes and Instructions for compilation of profit and loss account, issued by the RBI, the net profit/loss on revaluation of the […]

Profit on Exchange Transactions This item includes profit (net of loss) on dealings in foreign exchange. All income earned by way of foreign exchange commission and charges on foreign exchange […]