Sunny & Co. has been appointed as the Central Statutory Auditor of Money Bank Ltd., a private sector bank registered with the Reserve Bank of…

CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · May 2026
Sunny & Co. has been appointed as the Central Statutory Auditor of Money Bank Ltd., a private sector bank registered with the Reserve Bank of India, for the financial year 2024–25. While reviewing the computation of Demand and Time Liabilities (DTL), the engagement partner observed the following treatment of certain items: Sr. No. Particulars of Item Inclusion/ Exclusion 1 Net credit balance of Branch Adjustment Account Inclusion 2 Amount received from ECGC by invoking the guarantee Exclusion 3 Amounts received in INR for disposal of import bills shown under Sundry Deposits Inclusion 4 Unaccounted inward remittances received on behalf of customers Inclusion 5 Margins held and kept in sundry deposits for funded facilities. Inclusion Identify the aforementioned serial numbers of the items that have been incorrectly included in, or excluded from, the computation of Demand and Time Liabilities (DTL).
(A) Items at Sr. No. 1 & 4, respectively.
(B) Items at Sr. No. 2, 3 & 5, respectively.
(C) Items at Sr. No. 1 & 3, respectively.
(D) Items at Sr. No. 3 & 5, respectively.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

Items at Sr. No. 3 & 5, respectively.

Topics: Special Features of Audit of Banks & Non-Banking Financial Companies

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