M/s Vrinda & Associates (referred to as 'auditor') have been appointed as one of the statutory central auditors of ICCB Bank, (referred to as…

M/s Vrinda & Associates (referred to as 'auditor') have been appointed as one of the statutory central auditors of ICCB Bank, (referred to as ‘Bank') for the Financial Year 2022-23. During the course of the audit, the auditor found that the bank has a balance with a Swiss based bank. The auditor understands that such balance is a matter of important consideration in the audit of the bank. The engagement partner, Mr. Mitansh, has also advised the audit staff to check in detail the following items appearing in the financial statements of the bank during the year under audit. Amount of interest accrued and not due on deposits amounting to 87,75,000/-. The balance of Interest rate swaps amounting to 81,26,500/-. Further, the statutory auditors understand that one of the most important areas to be checked in the audit of a bank is the compliance with CRR and SLR requirements. The audit staff apprised the engagement partners about the few unaudited branches of the Bank and the course of action in this regard was discussed in detail within the engagement team. The details with respect to unaudited branches are as under: Interest Income:27,86,000/-.Interest Expense:13,38,220/-.Total advances:5,10,22,000/-.Total deposits:3,38,00,000/-. The auditors also discussed the following with the audit staff and the bank management during the course of the audit: Computation of Demand and Time Liabilities.Computation of Tier I & Tier II capital of the Bank. Based on the above facts, answer the following: