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Bank Audit

Interest Income

Interest Income

Interest Income As a measure of control and also to ensure that the legal remedies against defaulting borrowers are not adversely affected, banks commonly follow the procedure of recording interest […]

Audit Approach and Procedures

Audit Approach and Procedures

Audit Approach and Procedures Income In carrying out an audit of income, the auditor is primarily concerned with obtaining reasonable assurance that the recorded income arose from transactions, which took […]

Appropriations

Appropriations

Appropriations Under this head, the net profit/ loss for the year as well as profit/ loss brought forward have to be shown. The appropriations of the aggregate thereof are to […]

Provisions and Contingencies

Provisions and Contingencies

Provisions and Contingencies This item represents the aggregate of the provisions made in respect of the following: (a) Non-performing assets (b) Taxation (c) Diminution in the value of investments (d) […]

Operating Expenses

Operating Expenses

Operating Expenses The following items are included under this head: (i) Payments to and Provisions for Employees: This item includes salaries and wages of staff, allowances, bonus, other staff benefits […]

Interest Expended

Interest Expended

Interest Expended The following items are included under this head: (a) Interest on Deposits: This includes interest paid/ payable on all types of deposits including deposits from banks and other […]

Expenses

Expenses

Expenses Expenditure is to be shown under three broad heads: interest expended; operating expenses; and provisions and contingencies.

Miscellaneous Income

Miscellaneous Income

Miscellaneous Income This head generally includes following items of income: (a) rental income from bank’s properties; (b) security charges; (c) insurance charges recoverable from customers; (d) Other income from carrying […]