Podcast
Questions and Answers
What does Risk Based Internal Audit (RBIA) primarily focus on?
What does Risk Based Internal Audit (RBIA) primarily focus on?
- Compliance with external regulations
- Evaluating operational efficiency
- Assessing risk and determining coverage (correct)
- Conducting financial audits for accuracy
Which entity's guidelines are crucial for Risk Based Internal Audit in banks?
Which entity's guidelines are crucial for Risk Based Internal Audit in banks?
- Central Bank of the United States
- Financial Accounting Standards Board (FASB)
- International Accounting Standards Board (IASB)
- Reserve Bank of India (RBI) (correct)
Which of the following is NOT a consideration when implementing RBIA?
Which of the following is NOT a consideration when implementing RBIA?
- Historical financial performance (correct)
- Directions from ACE/ACB
- Bank's operational policies
- Internal Audit objectives of the bank
What is the primary objective of Risk Based Internal Audit?
What is the primary objective of Risk Based Internal Audit?
When are RBI guidelines considered in Risk Based Internal Audit?
When are RBI guidelines considered in Risk Based Internal Audit?
What is the time frame for the PR Audit to be conducted for new branches?
What is the time frame for the PR Audit to be conducted for new branches?
At what level are audits for high-risk branches to be conducted?
At what level are audits for high-risk branches to be conducted?
Which of the following entities is a part of the Internal Audit framework mentioned?
Which of the following entities is a part of the Internal Audit framework mentioned?
How often should the audits for newly opened branches occur?
How often should the audits for newly opened branches occur?
Who is responsible for conducting Internal Audits across various entities?
Who is responsible for conducting Internal Audits across various entities?
What is the implication of high-risk branches with respect to audit frequency?
What is the implication of high-risk branches with respect to audit frequency?
Which of the following areas is not mentioned in the audit framework?
Which of the following areas is not mentioned in the audit framework?
Which type of branches requires the PR Audit within six months of their opening?
Which type of branches requires the PR Audit within six months of their opening?
What is the primary purpose of the guidelines and procedures mentioned?
What is the primary purpose of the guidelines and procedures mentioned?
How does the tracking of issues through the MIS report improve analysis?
How does the tracking of issues through the MIS report improve analysis?
What cultural impact is anticipated from the improved compliance reported?
What cultural impact is anticipated from the improved compliance reported?
What is the expected outcome of raising awareness among business owners about their portfolio risks?
What is the expected outcome of raising awareness among business owners about their portfolio risks?
What aspect of document management is highlighted in the content?
What aspect of document management is highlighted in the content?
Which report is specified as being available in the system for monitoring purposes?
Which report is specified as being available in the system for monitoring purposes?
What benefit does the dashboard provide according to the content?
What benefit does the dashboard provide according to the content?
What does the phrase 'sensitization of the staff' imply?
What does the phrase 'sensitization of the staff' imply?
What is the primary purpose of the rectification mentioned in the content?
What is the primary purpose of the rectification mentioned in the content?
Which of the following best represents the relationship between Mr, P, and R as mentioned in the content?
Which of the following best represents the relationship between Mr, P, and R as mentioned in the content?
What does the abbreviation 'IV' refer to in the context of this content?
What does the abbreviation 'IV' refer to in the context of this content?
What role do auditors play according to the information provided?
What role do auditors play according to the information provided?
Which statement correctly describes the 'AS of internal control' mentioned?
Which statement correctly describes the 'AS of internal control' mentioned?
What does the term 'irregularities' refer to in this content?
What does the term 'irregularities' refer to in this content?
What is the expected outcome as a result of the rectification process described?
What is the expected outcome as a result of the rectification process described?
How should controllers respond to irregularities according to the content?
How should controllers respond to irregularities according to the content?
What is the primary role of internal auditors within a bank?
What is the primary role of internal auditors within a bank?
Which quality is essential for internal auditors to perform their duties effectively?
Which quality is essential for internal auditors to perform their duties effectively?
What does having sufficient standing and authority enable internal auditors to do?
What does having sufficient standing and authority enable internal auditors to do?
Why is objectivity important for internal auditors?
Why is objectivity important for internal auditors?
What does the function of internal auditors primarily involve?
What does the function of internal auditors primarily involve?
How does a lack of independence affect internal auditors' work?
How does a lack of independence affect internal auditors' work?
Which of the following should internal auditors possess to conduct their work effectively?
Which of the following should internal auditors possess to conduct their work effectively?
What aspect of internal auditing can influence the effectiveness of the audit process?
What aspect of internal auditing can influence the effectiveness of the audit process?
What is the primary focus of the iBooklet?
What is the primary focus of the iBooklet?
What should employees do to keep themselves updated?
What should employees do to keep themselves updated?
What does CIAD stand for?
What does CIAD stand for?
What is a primary responsibility of the Central Internal Audit Division?
What is a primary responsibility of the Central Internal Audit Division?
Which aspect does the Audit Policy of the Bank conform to?
Which aspect does the Audit Policy of the Bank conform to?
How should the information provided in the iBooklet be regarded?
How should the information provided in the iBooklet be regarded?
What is an expected outcome of reading the Bank's news?
What is an expected outcome of reading the Bank's news?
What is one reason for conducting internal audits?
What is one reason for conducting internal audits?
What type of information does the iBooklet primarily provide?
What type of information does the iBooklet primarily provide?
The focus of the Internal Audit System is to ensure what?
The focus of the Internal Audit System is to ensure what?
Which of the following statements is true regarding the guidelines issued?
Which of the following statements is true regarding the guidelines issued?
What is the role of employees regarding the iBooklet?
What is the role of employees regarding the iBooklet?
What are employees encouraged to do in addition to reading the Bank’s news?
What are employees encouraged to do in addition to reading the Bank’s news?
Flashcards
IV
IV
Internal Verification
H
H
Head of Department
S
S
Sign
A
A
Signup and view all the flashcards
R
R
Signup and view all the flashcards
M
M
Signup and view all the flashcards
P
P
Signup and view all the flashcards
K
K
Signup and view all the flashcards
Internal Audit Function
Internal Audit Function
Signup and view all the flashcards
Independence
Independence
Signup and view all the flashcards
Objectivity
Objectivity
Signup and view all the flashcards
Standing and Authority
Standing and Authority
Signup and view all the flashcards
Professional Competence
Professional Competence
Signup and view all the flashcards
Effectiveness
Effectiveness
Signup and view all the flashcards
Activities
Activities
Signup and view all the flashcards
Knowledge and Experience
Knowledge and Experience
Signup and view all the flashcards
Snap I&V System
Snap I&V System
Signup and view all the flashcards
PR Audit
PR Audit
Signup and view all the flashcards
High Risk Branches
High Risk Branches
Signup and view all the flashcards
Internal Audit
Internal Audit
Signup and view all the flashcards
Regional Office
Regional Office
Signup and view all the flashcards
Main & Local Area Offices
Main & Local Area Offices
Signup and view all the flashcards
Baroda Financial Solutions Ltd.
Baroda Financial Solutions Ltd.
Signup and view all the flashcards
RBIA's Purpose
RBIA's Purpose
Signup and view all the flashcards
RBIA Scope
RBIA Scope
Signup and view all the flashcards
RBIA's Focus
RBIA's Focus
Signup and view all the flashcards
RBIA's Benefit
RBIA's Benefit
Signup and view all the flashcards
Internal Audit Policy
Internal Audit Policy
Signup and view all the flashcards
What is the goal of the Internal Audit?
What is the goal of the Internal Audit?
Signup and view all the flashcards
How does the Internal Audit work?
How does the Internal Audit work?
Signup and view all the flashcards
What are the responsibilities of the CIAD?
What are the responsibilities of the CIAD?
Signup and view all the flashcards
How is the CIAD structured?
How is the CIAD structured?
Signup and view all the flashcards
What is the role of the Internal Audit Policy in the Bank's operations?
What is the role of the Internal Audit Policy in the Bank's operations?
Signup and view all the flashcards
How does the Internal Audit Policy relate to the Reserve Bank of India (RBI)?
How does the Internal Audit Policy relate to the Reserve Bank of India (RBI)?
Signup and view all the flashcards
What is the importance of ongoing updates for the Bank's personnel?
What is the importance of ongoing updates for the Bank's personnel?
Signup and view all the flashcards
What is the role of previous trends in understanding the Internal Audit?
What is the role of previous trends in understanding the Internal Audit?
Signup and view all the flashcards
How is the Internal Audit different from an instruction manual?
How is the Internal Audit different from an instruction manual?
Signup and view all the flashcards
Why is it important for bank employees to understand the Internal Audit process?
Why is it important for bank employees to understand the Internal Audit process?
Signup and view all the flashcards
How does the Internal Audit contribute to the Bank's overall success?
How does the Internal Audit contribute to the Bank's overall success?
Signup and view all the flashcards
Control Gap
Control Gap
Signup and view all the flashcards
Sensitization
Sensitization
Signup and view all the flashcards
MIS Report
MIS Report
Signup and view all the flashcards
Vertical Analysis
Vertical Analysis
Signup and view all the flashcards
Horizontal Analysis
Horizontal Analysis
Signup and view all the flashcards
Compliance Culture
Compliance Culture
Signup and view all the flashcards
Business Owner
Business Owner
Signup and view all the flashcards
Risk of Portfolio
Risk of Portfolio
Signup and view all the flashcards
Study Notes
Reference study material for promotion exercise of Officers 2025-26
- This booklet is a supplement for promotion aspirants, learning efforts of the promotion aspirants.
- Topics are indicative in nature, and Apex Academy advises readers to refer to Book of Instructions, SOPs, Circulars, Policy, guidelines, etc. for updated information.
- This booklet focuses mainly on the promotion exam within the bank, based on previous trends, and should not be considered as an instruction manual.
- Employees should update themselves by reading bank's circulars, guidelines, and latest banking industry/other general awareness related news.
Introduction to Audit
- Central Internal Audit Division (CIAD) is an independent, responsible for proper functioning of the Bank's Internal Audit System (RBIA) and formulating the Audit Policy.
- Policy conforms to RBI, Government, Board and Audit Committee's guidelines and best practices in the financial industry.
- The policy establishes principles, standards, and an approach for internal audit at the Bank.
- CIAD ensures adherence to systems, policies, and procedures while pursuing growth.
- Internal audit plays a crucial role in contributing to the effectiveness of a bank's internal control system.
Organization Structure
- CIAD functions independently and is situated at Head Office.
- CIAD reports to the Executive Director periodically and coordinates with functional heads for adherence to compliance and rectification certificates.
- Zonal Internal Audit Divisions conduct branch/office inspections as per Audit Committee's schedule.
- CIAD performs off-site surveillance through a centralized exceptional monitoring unit.
Centralized Audit / Continuous Auditing
- Centralized audit covers specialized offices, such as Treasury, Data Center, and Trade Forex Back Office.
- Decentralized audit is performed by Zonal Internal Audit Divisions in branches, city back offices, and zonal offices.
- Continuous auditing is implemented for both centralized and decentralized units/offices, with an off-site audit team from CIAD identifying and communicating exceptions.
Internal Audit Framework/Methodology
- Risk-Based Internal Audit (RBIA) is implemented in the bank, focusing on the Bank's interest and objectives.
- RBIA ensures an independent assessment of the effectiveness of internal controls, risk management, and governance systems.
- Audit tasks include risk identification, prioritisation, audit area allocation, and ensuring all bank activities and entities are within the audit scope.
- Audit covers regulatory areas, risk mitigation suggestions, and prevention of fraudulent activities.
- Risk-based internal audit periodicity varies by branch risk level (Low, Medium, High).
e-RBIA
- Automated e-RBIA system implemented in all branches for efficient compliance reporting by branches.
- Branches login to the e-RBIA platform for report review and closure.
- Zonal Internal Audit Divisions (ZIADs) follow up for 100% branch compliance and audit report closure.
- Early rectification of irregularities, control gap identification, and staff sensitization are benefits of e-RBIA.
- Workflow for e-RBIA includes draft report submission to ZIAD and final report submission to branch.
Compliance Report
- Credit portfolio exposure more than INR 100 Cr.
- Branches to submit compliance and final reports within specified timelines.
Risk Based Internal Audit
- Risk Based Internal Audit (RBIA) involves an examination of internal controls.
- Risk identification, prioritization, and allocation of audit resources to ensure all bank activities and entities fall within the audit scope are crucial aspects.
- Internal Auditors perform transaction testing, analyze control effectiveness, and ensure regulatory compliance.
Concurrent Audit
- Concurrent audit is a continuous, systematic examination of branch/unit operations.
- It ensures compliance with bank systems, procedures, and applicable regulatory standards.
- Concurrent Audit objectives include:
- Continuous system monitoring
- Ensuring accuracy and adherence to procedures.
- Identifying lapses and preventing future issues.
- Facilitating improvements in internal control.
- Concurrent auditors evaluate branches with high residual risk, high business volume, or significant deficiencies in earlier audits.
IS Audit
- IS (Information System) audit is an independent examination of Information Systems to ensure security objectives are met.
- Audit scope encompasses IT systems, applications, and IT infrastructure.
- Auditing frequency is based on the criticality and impact of applications to ensure all applications are audited within a three-year cycle, or within thirty days of a new system going live.
- Compliance timelines for audit findings vary according to criticality : 5 days for High, 7 for Medium, and 7 days for Low findings.
Credit Audit
- Credit Audit is an independent risk-review function, providing assurance to stakeholders.
- It evaluates compliance with loan sanction procedures, identifies risks, and suggests mitigation measures.
- Credit Audit coverage includes new and existing loan accounts, sister concerns, and associates with specified exposure.
- Credit Audit schedules, periods, and execution procedures are included in the policy.
Zero Tolerance Area
- Zero tolerance areas for irregularities have been identified,
- The focus is on immediately rectifying detected issues as
- Urgent attention is warranted for persistent irregularities to improve the bank's overall operation and risk management.
Formalization / Exit Meeting
- Internal Auditors are required to hold 'EXIT' or 'Formalization' meetings before completing a Risk-Based Internal Audit.
- Meetings include discussions with Branch/Regional heads, including spot irregularities resolution, to improve audit effectiveness.
- Guidelines are given for these meetings, covering different levels of Branch Managers.
Compliance Audit
- Compliance Audit is conducted post RBIA to ensure prompt remediation from branches.
- Branches are required to address or report any 'persisting irregularities' from RBIA in compliance with timelines.
Legal Audit
- Legal Audit is done on specific loans to ensure compliance with all guidelines.
- A system was introduced for the verification of title documents to mitigate legal risks.
- The process is applicable to large loans (above Rs. 5Cr) and is carried out to ensure genuineness, and is monitored.
- Compliance with RBI guidelines for loan documents, including re-verification, is necessary. All reporting, progress reports, and findings, are to be completed promptly.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz focuses on the essential concepts of Risk Based Internal Audit (RBIA) and its application within banking. It covers the primary objectives, key guidelines from regulatory bodies, and considerations for effective implementation of RBIA. Test your knowledge on these critical aspects of internal auditing.
