Column A describes description of certain terms used in banking industry. Complete Column B by suggesting term appropriate to description given.…
CA Intermediate · Auditing and Ethics · MTP · May 2024
Column A describes description of certain terms used in banking industry. Complete Column B by suggesting term appropriate to description given. Column A Column B Audit of borrower client of bank carried out at bank's request to verify borrower's current assets ? Limit up to which an entity can withdraw from sanctioned working capital limit ? Statutory right of a creditor to adjust debit balance in debtor's account against any credit balance lying in another account of debtor ? Creation of security in a bank branch by mere delivery of title deeds by a prospective borrower of funds ?
Suggested Answer and Working Notes:
Audit of borrower client of bank carried out at bank's request to verify borrower's current assets- Stock audit Limit up to which an entity can withdraw from sanctioned working capital limit- Drawing power Statutory right of a creditor to adjust debit balance in debtor's account against any credit balance lying in another account of debtor- Set-off Creation of security in a bank branch by mere delivery of title deeds by a prospective borrower of funds- Equitable Mortgage
Topics: Audit of Banks
Related Questions in this Topic
- During the statutory audit of Pragati Bank Ltd. for the financial year ended 31st March, 2026, CA Nikhil examined the ad...
- You are the auditor of a bank. During the audit, you are required to verify the provisions and contingencies recognised ...
- PQR Ltd. has been sanctioned a cash credit facility of ₹30 crores by ABC Bank Ltd. During the financial year 2025-26, th...
- KLM & Co., Chartered Accountants, were appointed as statutory auditors of S Ltd. During the audit of bank borrowings, th...
- ABC Bank Limited has a substantial portfolio of advances comprising term loans, cash credit facilities and overdrafts. A...