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CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities

Anita Rao, a Company Secretary, is asked by a bank's management to review whether its internal policies, board-approved procedures and RBI directions are being followed across branches, and to report gaps with recommendations to the audit committee. Which assignment best describes this work?

The work is a compliance audit with advisory review. Anita examines whether branches follow board policies and RBI directions and reports gaps to the audit committee. It is not a statutory financial audit, an actuarial valuation or a claim loss assessment, which have different scopes and professionals.

  1. AA statutory audit of the bank's financial statements under the Banking Regulation Act
  2. BA compliance audit and advisory review of regulatory adherenceCorrect
  3. CAn actuarial valuation of the bank's liabilities
  4. DA loss assessment for an insurance claim

Explanation

Reviewing adherence to internal policies and RBI directions and reporting gaps to the audit committee is a compliance audit with an advisory element. A statutory audit of financial statements is done by appointed auditors, and actuarial valuation and loss assessment are unrelated to the described scope.

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