Disclosure and treatment of Contingent Liabilities and Contingent Assets in a financial statement

Accounting Standard (Ind AS 37) defines and specifies the accounting for and disclosure of provisions, contingent liabilities, and contingent assets. A contingent liability is a liability that may occur depending on the outcome of an uncertain future event. It is a possible obligation that may or may not arise depending on how a future event…

The objectives and scope of risk-based internal audits in banks

Historically, the internal audit system in banks has been concentrating on transaction testing, testing of accuracy and reliability of accounting records and financial reports, integrity, reliability, and timeliness of control reports, and adherence to legal and regulatory requirements.  Recently, vide circular DoS.CO.PPG./SEC.04/11.01.005/2020-21 dated January 07, 2021, RBI asked banks to align their internal audit function…