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Questions and Answers
Bank examination is a process conducted by banks' internal audit teams
False
External supervision of banks is conducted by banks' management teams
False
Bank supervision is primarily focused on ensuring the safety and soundness of individual banks
False
One of the key factors in preventive measures for banking supervision and examination is setting up procedures where the work of one person is checked and proven by another
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The primary goal of bank supervision is to protect the interests of shareholders
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Bank supervision and examination are only conducted internally by banks themselves
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Internal control in a bank is only responsible for safeguarding bank assets.
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Peculation is the act of stealing assets or committing fraud by external parties.
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The second part of internal control constitutes of giving one person complete control over a department or section.
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Internal control is only implemented to prevent fraud and stealing of assets.
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The use of daily proof sheets and periodical statement reconciliation of accounts is part of the first phase of internal control.
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Internal control is only applicable to banks and not to other companies.
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