Audit - 17. page

Income Earned by Way of Dividends, etc. from Subsidiaries and Joint Ventures abroad/in India It may be noted that any income derived from the investment portfolio by way of interest […]

Interest Earned The following items are included under this head: (a) Interest/Discount on Advances/Bills: This includes interest and discount on all types of loans and advances like cash credit, overdrafts, […]

Income from Investments Interest and dividend on investments is usually accounted for at the head office. Such interest and dividend, therefore, may not appear in the profit and loss account […]

Other Income The following items are included under this head: (i) Commission, Exchange and Brokerage: This item comprises of the following: (a) Commission on bills for collection. (b) Commission/exchange on […]

Applicability of AS 5 and Materiality Accounting Standards are intended to apply only to items that are material. Since materiality is not objectively defined, RBI, vide its Circular No. DBOD.No.BP. […]

Computation of SLR Refer Master circular No. DBR.No.Ret.BC.24/12.01.001/2015-16 on “Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)” dated July 1, 2015, for guidance on computation of SLR. Further, RBI […]

Audit Approach and Procedures The report of the statutory auditors in relation to compliance with SLR requirements has to cover two aspects: (a) correctness of the compilation of DTL position; […]

Profit and Loss Account Sub–section (1) of section 29 of the Banking Regulation Act, 1949, requires the preparation of Profit and Loss Account in Form B of Third Schedule to […]

Disclosures Of Profit and Loss Account  The Profit and Loss Account as set out in Form B has four broad heads:  Income  Expenditure  Profit/ Loss  Appropriations The […]

Information Technology (‘IT’) Controls The audit considerations for this aspect include:  Obtain IT related information from the bank for treasury operations and review, as appropriate, minutes of any committees […]