The Reserve Bank of India in consultation with the ICAI appoints qualified Chartered Accountants as Statutory Auditors of the banks. The auditor appointed as statutory auditor of a bank branch shall conduct the audit at the end of the financial year i.e.as of 31st March of the relevant year. Nowadays, the bank branches are working…
In our previous posts, we talked about What is a statutory audit? In addition to the normal audit report as per the statutory requirements, the terms of the public, private & foreign sector banks involve the auditors to furnish an LFAR. The overall objective of the Long Form Audit Report (LFAR) is to identify and…
In our previous posts we talked about (1) Legal audit in banks, (2) What is the stock audit (3) What is a forensic audit? (4) What is a Legal Audit? (5) Concurrent Audit System in bank. (6) What is a statutory audit?. In this post let us study what is a tax audit? A tax…
Reserve Bank of India (RBI) on Thursday (19.09.2019) revised the guidelines on concurrent audit system on the basis of the certain recommendations made by the expert committee headed by Y.H. Malegam. As per the new norms, the appointment of concurrent auditors will be appointed for a period of not more than three years instead of…
When borrowers unable to pay interest on time, it will add to principal amount of the borrower’s loan account at regular frequency. In the other words Capitalization frequency is the addition of unpaid interest to the principal balance of your loan. That means it is added to borrower’s Current Principal and interest will now be…
We all know ‘Sample’ means a small part or quantity intended to show what the whole is like. Similarly, the ‘Random Sampling’ is a way of selecting a portion chosen from the population in order to make inferences about the whole population. For example, pre-polls or exit polls results obtained from random voters aims to…
A statistical hypothesis is also known as confirmatory data analysis which is testable on the basis of observing a process that is modeled via a set of random variables. Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding a population parameter. There are two different hypothesis viz. Null hypothesis and…
Regression analysis is a form of inferential statistics. It is a measure of the relation between the mean* value of one variable (e.g. output) and corresponding values of other variables (e.g. time and cost). Regression model can help predict sales for a company based on weather, previous sales, GDP growth or other types of conditions.…
In statistics, the correlation coefficient r measures the strength and direction of a linear relationship between two variables on a scatterplot. The value of r is always between +1 and –1. The closer the value of r is to +1, the stronger the linear relationship. For example, suppose the value of Diesel prices are directly…
The Pillar 3 of the Basel frame work aims to promote market discipline through regulatory disclosure requirements. BCBS has set out following five guiding principles for banks’ Pillar 3 disclosures. Principle 1: Disclosures should be clear: The disclosure shall be in a simple language understandable to all the stake holders along with presentation of risk…