CAIIB ABM Module D UNIT 27 MCQ – Compliance Audit

Correct Answer: C. To enable market participants to assess key information about the bank. Regulatory disclosures provide essential information on capital adequacy, risk exposures, and risk assessment processes.

Correct Answer: B. The bank’s liquidity and solvency, and the risks related to its assets and liabilities. Users of financial statements are interested in a bank’s ability to meet its short-term and long-term obligations and the potential risks associated with its financial instruments.

Correct Answer: C. They provide or can only provide certain very useful information. Notes to accounts and supplementary information are used to explain and document items affecting the financial position and performance.

Correct Answer: B. To act as a means to explain and document certain items. Notes and supplementary information are used to clarify and provide details about items included in the financial statements or those that otherwise affect the reporting enterprise’s financial position and performance.

Correct Answer: B. The issue of market discipline. The document highlights that a lot of attention has recently been paid to the issue of market discipline in the banking sector.

Correct Answer: B. Timely and reliable information to assess banks’ activities and risks. Market discipline is stated to work only if market participants have access to timely and reliable information enabling assessment of bank activities and inherent risks.

Correct Answer: B. Basel II framework. Market discipline is recognized as one of the three pillars under the Basel II framework on capital adequacy.

Correct Answer: B. Because their shares are freely tradable in the stock market. For banks listed on stock exchanges with freely tradable shares, protecting investor interest is crucial and requires more transparent disclosures.

Correct Answer: C. Stockholders and Depositors. The equality explicitly states that stockholders and depositors together constitute stakeholders.

Correct Answer: B. Part XA. Provisions relating to banking companies were administered through Part XA of the Indian Companies Act, 1956 before the Banking Regulation Act.

Correct Answer: C. The protection of the interest of the depositor. The statement of objects and reasons for forming a separate Banking Regulation Act highlights the protection of depositors’ interest as the primary objective of banking legislation, in contrast to company law’s focus on stockholders.

Correct Answer: C. The Securities and Exchange Board of India Act, 1992. The document lists the Banking Regulation Act, the Companies Act 2013, Companies Rules 2014, Indian Accounting Standards, and RBI guidelines for disclosures and Basel III requirements.

Correct Answer: B. Schedule 17 and Schedule 18. RBI has advised banks to show a summary of ‘Significant Account Policies’ and ‘Notes to Accounts’ under Schedule 17 and Schedule 18 respectively for uniformity.

Correct Answer: B. A methodology that links internal auditing to an organisation’s overall risk management framework. This is the definition provided by The Institute of Internal Auditors as per the document.

Correct Answer: C. That risk management processes are managing risks effectively, in relation to the risk appetite. RBIA allows internal audit to provide assurance to the board regarding the effectiveness of risk management processes in relation to the organisation’s risk appetite.

Correct Answer: B. Auditing the management of risk. The document explicitly states that RBIA is not about auditing risks but about auditing the management of risk.

Correct Answer: C. Reserve Bank of India (RBI). The document states that all banks shall adopt the Risk based Internal Audit approach in line with the RBI requirements.

Correct Answer: B. To provide an assurance that the internal controls are adequate to mitigate risks. The objective of internal audit includes examining the internal control environment and providing assurance about its adequacy to mitigate risks.

Correct Answer: B. First and second lines of defence. The objectives of risk-based internal audit include reviewing potential inherent risks processes and controls instituted by the first and second line of defence.

Correct Answer: B. To review the systems to ensure compliance. One of the objectives of risk-based internal audit is to review the systems to ensure compliance with legal and regulatory requirements.

Correct Answer: C. To identify deficiencies and monitor closure of action items. Identifying deficiencies in the control environment and monitoring the closure of action items is listed as an objective of risk-based internal audit.

Correct Answer: C. Assurance about the adequacy and effectiveness of the risk management and control framework. Risk-based internal audit aims to provide assurance to the Board and top management regarding the adequacy and effectiveness of the risk management and control framework.

Correct Answer: B. Risk-based internal audit. To strengthen controls and checks to enhance efficiency in the bank’s operations is listed as an objective of risk-based internal audit.

Correct Answer: B. Whether they are being adhered to. Risk-based internal audit aims to ensure that instructions and various internal policy guidelines are adhered to.

Correct Answer: C. To verify whether there is any dereliction of duty. An objective of internal audit is to verify whether there is any dereliction of duty on the part of any employees.

Correct Answer: C. To verify whether there is any transgression of power. Internal audit examines whether there is any transgression of power at various operational levels.

Correct Answer: C. By examining the working and suggesting measures to prevent frauds. Internal audit examines the working of branches/access points from the point of view of vulnerability and susceptibility to frauds and suggests prevention measures.

Correct Answer: C. By helping in adhering to prescribed systems and procedures. Internal audit helps in adhering to prescribed systems and procedures, which aids in the prevention or timely detection and rectification of lapses/irregularities.

Correct Answer: B. Whether they are being adhered to. Internal audit verifies adherence to the guidelines and directives issued by the RBI/other statutory authorities.

Correct Answer: C. That they are effective and efficient. Internal audit also ensures that corporate governance processes are effective and efficient.

Correct Answer: C. To evaluate and improve their effectiveness. Internal audit is responsible for evaluating and improving the effectiveness of risk management, control, and governance processes.

Correct Answer: B. To the Chief Compliance Officer, Central office, under copy to Risk management department at Ro/Zo & respective Regional/Zonal Head. Internal auditors should capture and report breaches/non-compliances to the Chief Compliance Officer, Central office, with copies to specified regional/zonal heads and risk management.

Correct Answer: C. The Board of Directors and Senior Management of financial entities. The Board of Directors and Senior Management have the primary responsibility for approving business strategy and ensuring prudent risk management.

Correct Answer: C. Governance and assurance functions. The document states that governance and assurance functions have to act as strong internal lines of defense.

Correct Answer: B. Internal defences. RBI has focused on strengthening internal defences by updating supervisory instructions.

Correct Answer: B. Assurance on the quality and effectiveness of a bank’s internal control, risk management and governance systems and processes. An effective internal audit function provides independent assurance on the quality and effectiveness of these systems and processes.

Correct Answer: B. Sufficient standing and authority. Independence of the internal audit function requires it to have sufficient standing and authority within the bank.

Correct Answer: C. Professional competence, including knowledge and experience. Professional competence, knowledge and experience of internal auditors are essential for the effectiveness of the internal audit function.

Correct Answer: B. Integrity. Internal auditors must act with integrity.

Correct Answer: C. An internal audit policy. Banks should have an internal audit policy that articulates the purpose, standing and authority of the internal audit function.

Correct Answer: B. Weaknesses in the Governance, Oversight & Assurance functions. Recent events showed that weaknesses in these functions were some of the root causes of difficulties.

Correct Answer: C. Reviewed/amended them to strengthen internal defenses. RBI has reviewed/amended supervisory instructions to strengthen governance and assurance functions, acting as internal defenses.

Correct Answer: A. Guidelines on Concurrent audit system. The guidelines on the Concurrent audit system were amended to help in the timely detection of errors and irregularities.

Correct Answer: C. Risk Based Internal Audit (RBIA). The RBIA framework was made mandatory for certain categories of UCBs/NBFCs.

Correct Answer: C. Compliance function. The compliance function in SCBs was strengthened, and the status, authority, and independence of the Chief Compliance Officer were enhanced.

Correct Answer: B. System-based Identification of NPAs. Guidelines were issued on System-based Identification of NPAs for SCBs/UCBs.

Correct Answer: C. SCBs/UCBs/NBFCs. Harmonisation of appointment of Statutory Auditors was implemented across SCBs/UCBs/NBFCs.

Correct Answer: B. It is largely underutilised as the right areas are not being picked up. A common observation mentioned is that the internal audit function in banks is largely underutilised because the right areas are not being picked up.

Correct Answer: C. Risk rating of audit areas. The document notes that risk rating of audit areas is highly critical but is mostly based on lag indicators.

Correct Answer: B. It needs to be reviewed, and back testing is required periodically. There is a need to review the risk rating framework for businesses and branches, and back testing is also required at periodic intervals.

Correct Answer: C. The quality and quantity of people in the Internal Audit department. The quality and quantity of people in the IA department remains a cause of concern and impacts the quality of the IA function.

Correct Answer: C. Through enhanced IT usage. It is suggested that issues related to sample-based audits due to large numbers involved can be handled more effectively through enhanced IT usage.

Correct Answer: C. Fraud prevention. Fraud prevention should remain on the radar of the internal audit function.

Correct Answer: B. External validation. External validation of the IA framework should be carried out on a periodic basis.

Correct Answer: C. Role of oversight & assurance functions. The role of oversight & assurance functions has been gaining wider attention globally and is acknowledged as an area warranting considerable attention.

Correct Answer: B. Sound corporate governance and assurance functions. Sound corporate governance and assurance functions are considered essential elements in a bank’s safe and sound functioning, which can adversely affect its risk profile if not effective.

Correct Answer: B. Organisations that are strong, resilient, disciplined and enjoy sustained growth and customer confidence. A strong internal audit is stated to help in building such organisations.

Correct Answer: C. Supervisory actions that would follow if transgressions are detected. A strong internal audit can pre-empt many supervisory actions and the associated reputational risk.

Correct Answer: C. The bank’s internal processes. A strong internal audit will permit the supervisor to place more reliance on the bank’s internal processes.

Correct Answer: C. Enhanced its stature. As a regulator/supervisor, the Reserve Bank has enhanced the stature of the internal audit function in banks.

Correct Answer: C. Proper reporting framework. Effective implementation and monitoring of the compliance function call for a proper reporting framework.

Correct Answer: B. Reporting of status/extent of compliance and reporting of breaches/non-compliances observed. The uniform reporting system covers both reporting of the status/extent of compliance and reporting of observed breaches/non-compliances.

Correct Answer: B. To RO/ZO, under copy to FGMO and respective Functional department. Branches should report observed breaches/non-compliances to RO/ZO, with copies to FGMO and the respective Functional department.

Correct Answer: C. To the Compliance department, Central Office. Functional departments at CO should report observed non-compliance/breaches to the Compliance department, CO.

Correct Answer: C. To encourage market discipline by allowing participants to assess key information. RBI’s disclosure requirements are developed to encourage market discipline by allowing market participants to assess key information.

Correct Answer: C. In the ‘Notes to Accounts’ in the balance sheet. If the profit and loss account format doesn’t specifically allow for disclosure of the impact of prior period items, it should be made in the ‘Notes to Accounts’.

Correct Answer: B. The circumstances in which revenue recognition has been postponed pending resolution of significant uncertainties. Accounting Standard 9 requires disclosure of circumstances where revenue recognition is postponed due to significant uncertainties.

Correct Answer: B. Accounting Standard 15 (revised). Banks may follow the disclosure requirements prescribed under Accounting Standard 15 (revised) on ‘Employees Benefits’.

Correct Answer: B. Business segment. The business segment should ordinarily be considered the primary reporting format for banks complying with Accounting Standard 17.

Correct Answer: C. Corporate/Wholesale Banking. ‘Corporate/Wholesale Banking’ is listed as one of the business segments for disclosure under Accounting Standard 17.

Correct Answer: C. Domestic and International. ‘Domestic’ and ‘International’ segments are the geographic segments for disclosure under Accounting Standard 17.

Correct Answer: C. Related party relationships and transactions. Accounting Standard 18 is applied in reporting related party relationships and transactions between a reporting enterprise and its related parties.

Correct Answer: B. Consolidated Financial Statements (CFS). Accounting Standard 21 deals with Consolidated Financial Statements (CFS) and disclosures in their ‘Notes to Accounts’.

Correct Answer: B. Taxes on income. Accounting Standard 22 is applied in accounting for taxes on income.

Correct Answer: C. Associates. Accounting Standard 23 sets out principles for recognising the effects of investments in associates in the consolidated financial statements.

Correct Answer: B. It may not be treated as an investment in an associate. The document explains that if the rights are protective and not participative, even with over 20% voting power, it may not be treated as an investment in an associate.

Correct Answer: C. The intention to acquire the power to exercise significant influence. The test should be the intention to acquire the power to exercise significant influence, not merely the proportion of investment.

Correct Answer: B. Interim Financial Reporting. Accounting Standard 25 relates to Interim Financial Reporting.

Correct Answer: C. All banks (both listed and unlisted). The half-yearly review for public sector banks has been extended to all banks (both listed and unlisted) for uniformity in disclosures.

Correct Answer: D. Institute of Chartered Accountants of India (ICAI). Banks are required to comply with disclosure norms stipulated under Accounting Standards issued by ICAI.

Correct Answer: C. In the ‘Notes to Accounts’. To consolidate information on Provisions and Contingencies, banks are required to disclose it in the ‘Notes to Accounts’.

Correct Answer: C. In the “Notes to Accounts” to the balance sheet. Comprehensive disclosures on floating provisions should be made in the “Notes to Accounts” to the balance sheet.

Correct Answer: B. In the ‘Notes to Accounts’ to the Balance Sheet. Suitable disclosures regarding any draw down of reserves are to be made in the ‘Notes to Accounts’ to the Balance Sheet.

Correct Answer: C. As (a) Customer Complaints and (b) Awards passed by the Banking Ombudsman. Banks are advised to disclose complaints categorised as Customer Complaints and Awards passed by the Banking Ombudsman.

Correct Answer: B. In the disclosure format specified for complaints. All customer complaints related to ATM cards should be included in the specified disclosure format for complaints.

Correct Answer: C. In its published financial statements as part of the ‘Notes to Accounts’. Banks should disclose full particulars of LoCs in their published financial statements as part of the ‘Notes to Accounts’.

Correct Answer: C. Provision Coverage Ratio (PCR). The Provision Coverage Ratio (ratio of provision for NPA to gross non-performing assets) should be disclosed in the Notes to Accounts.

Correct Answer: C. In the ‘Notes to Accounts’ to their Balance Sheet. Details of fees/brokerage earned from insurance business should be disclosed in the ‘Notes to Accounts’ to the Balance Sheet.

Correct Answer: C. For both the current year as well as previous year. Disclosures on insurance business earnings should be made for both the current and previous year.

Correct Answer: C. Concentration of Advances. Concentration of Advances is listed as a concentration that banks should disclose.

Correct Answer: B. Concentration of NPAS. Concentration of NPAS is mentioned along with Concentration of Deposits and Concentration of Advances for disclosure.

Correct Answer: C. Movement of NPAs. Movement of NPAs should be disclosed besides Sector wise Advances.

Correct Answer: B. Technical write offs and the recoveries made thereon. Technical write offs and recoveries made thereon are mentioned for disclosure related to NPAs.

Correct Answer: B. Overseas Assets, NPAs and Revenue. Overseas Assets, NPAs and Revenue are mentioned for disclosure.

Correct Answer: C. Private sector banks and foreign banks. Disclosures on Remuneration are applicable to Private sector banks and foreign banks.

Correct Answer: C. In the Notes to Accounts of the originating banks. The outstanding amount of securitised assets should be indicated in the Notes to Accounts of the originating banks.

Correct Answer: B. The total amount of exposures retained to comply with Minimum Retention Requirements (MRR). The total amount of exposures retained to comply with MRR needs to be disclosed.

Correct Answer: C. Both the proprietary model price and the standard model price. Banks using a proprietary model for CDS pricing must disclose both the proprietary model price and the standard model price.

Correct Answer: B. An explanation of the rationale behind using a particular model over another. Banks should include an explanation of the rationale behind using a particular model for CDS pricing.

Correct Answer: C. Intra Group Exposures. Banks should make disclosures related to Intra Group Exposures to ensure transparency.

Correct Answer: B. The total amount of intra group exposures. The total amount of intra group exposures is a required disclosure.

Correct Answer: C. The total amount of top 20 intra group exposures. The total amount of top 20 intra group exposures is also a required disclosure.

Correct Answer: C. Percentage of intra group exposures to total exposure of the bank on borrowers/customers. The percentage of intra group exposures to total exposure of the bank on borrowers/customers needs to be disclosed.

Correct Answer: B. Details of breach of limits on intra group exposures and regulatory action thereon, if any. Details of breaches of limits on intra group exposures and any regulatory action thereon must be disclosed.

Correct Answer: B. Contingent Liability – others, items for which the bank is contingently liable. Unclaimed liabilities transferred to DEAF may be reflected under ‘Contingent Liability – others, items for which the bank is contingently liable’.

Correct Answer: C. Under ‘Notes to Accounts’. Banks are also advised to disclose amounts transferred to DEAF under ‘Notes to Accounts’.

Correct Answer: B. Their policies to manage currency induced credit risk. Banks should disclose their policies to manage currency induced credit risk as part of financial statements.

Correct Answer: C. The incremental provisioning and capital held by them towards this risk. Banks should also disclose the incremental provisioning and capital held towards currency induced credit risk.

Correct Answer: B. Liquidity Coverage Ratio (LCR). Banks are required to disclose information on their Liquidity Coverage Ratio (LCR) in their annual financial statements under ‘Notes to Accounts’.

Correct Answer: C. All four quarters. The disclosure of LCR should cover all four quarters of the relevant financial year.

Correct Answer: B. Sufficient qualitative discussion around the LCR. Banks should provide sufficient qualitative discussion around the LCR to facilitate understanding.

Correct Answer: C. Listing Agreement. Companies desirous of listing their securities must enter into a Listing Agreement with the Exchange.

Correct Answer: C. Quarterly accounts. A company under a Listing Agreement is required to furnish quarterly accounts.

Correct Answer: C. News that affect stock prices. A company under a Listing Agreement should forward news that affects stock prices.

Correct Answer: C. Comply with corporate governance. A company under a Listing Agreement must comply with corporate governance.

Correct Answer: B. Copies of annual report and accounts. A company under the Listing Agreement should provide copies of the annual report and accounts to shareholders.

Correct Answer: C. The Listing regulations of SEBI. The disclosure requirements have been incorporated into the Listing regulations of SEBI.

Correct Answer: C. Specified securities listed on main board or SME Exchange or institutional trading platform. The regulations apply to entities that have listed specified securities on main board, SME Exchange, or institutional trading platform.

Correct Answer: B. Non-convertible debt securities, non-convertible redeemable preference shares, perpetual debt instrument, perpetual non-cumulative preference shares. These are also covered under the SEBI Listing regulations.

Correct Answer: B. Applicable standards of accounting and financial disclosure. Information shall be prepared and disclosed in accordance with the applicable standards of accounting and financial disclosure.

Correct Answer: B. Prescribed accounting standards. A listed entity must implement the prescribed accounting standards in letter and spirit.

Correct Answer: C. An independent, competent and qualified auditor. The annual audit should be conducted by an independent, competent and qualified auditor.

Correct Answer: B. Misrepresentation and ensure the information is not misleading. A listed entity should refrain from misrepresentation and ensure provided information is not misleading.

Correct Answer: B. Adequate and timely information. A listed entity should provide adequate and timely information to recognised stock exchange(s) and investors.

Correct Answer: C. A simple language. Disseminations should be adequate, accurate, explicit, timely, and presented in a simple language.

Correct Answer: C. Equal, timely and cost-efficient access to relevant information by investors. Dissemination channels should provide for equal, timely and cost-efficient access to relevant information by investors.

Correct Answer: C. All the provisions of the applicable laws including the securities laws and other guidelines issued by the Board and the recognised stock exchange(s). A listed entity must abide by all applicable laws, including securities laws and guidelines from the Board and stock exchanges.

Correct Answer: C. The interest of all stakeholders. A listed entity should consider the interest of all stakeholders when making disclosures and following obligations.

Correct Answer: C. Relevant information. Filings, reports, statements, documents and information should contain relevant information.

Correct Answer: C. Track the performance of a listed entity and assess its current status. Periodic filings should enable investors to track performance and assess the current status of a listed entity.

Correct Answer: B. Sufficient and timely information concerning the date, location and agenda, as well as full and timely information regarding issues to be discussed. Adequate and timely information about general meetings and discussion issues should be provided.

Correct Answer: B. The rights attached to all series and classes of shares. The rights attached to all series and classes of shares must be disclosed to investors before they acquire shares.

Correct Answer: B. At least five days. Prior intimation for board meetings considering financial results should be given at least five days in advance.

Correct Answer: A. Declaration/recommendation of dividend. Prior intimation of at least two working days is required for proposals like declaration/recommendation of dividend.

Correct Answer: C. At least eleven working days. Intimation of at least eleven working days is required before altering the form or nature of listed securities.

Correct Answer: B. To enable investors to make well-informed investment decisions. Timely, adequate and accurate disclosure is essential for investors to make well-informed investment decisions.

Correct Answer: B. Material events. Regulation 30 deals with the disclosure of material events by listed entities.

Correct Answer: B. Two. Material events are broadly described in two categories: those necessarily disclosed without materiality test and those disclosed if considered material.

Correct Answer: C. Events pertaining broadly to areas like Acquisition(s), Issuance/forfeiture of securities, Outcome of board meetings, etc. Events listed in Para A must be disclosed without applying a materiality test.

Correct Answer: B. Issuance or forfeiture of securities. Issuance or forfeiture of securities is an event that must be necessarily disclosed.

Correct Answer: B. Revision in Rating(s). Revision in Rating(s) is an event that requires necessary disclosure.

Correct Answer: C. Outcome of meetings of the board of directors. The outcome of meetings of the board of directors must be necessarily disclosed.

Correct Answer: C. Shareholder agreement(s), joint venture agreement(s), family settlement agreement(s) (to the extent that it impacts management and control). These types of agreements require necessary disclosure if binding and not in the normal course of business.

Correct Answer: B. Promoter or key managerial personnel or by the listed entity. Fraud/Defaults by promoter, key managerial personnel, or the listed entity require necessary disclosure.

Correct Answer: B. Directors, key managerial personnel (Managing Director, Chief Executive officer, Chief Financial officer, Company Secretary, etc.), Auditor and Compliance officer. Changes in these key personnel require necessary disclosure.

Correct Answer: B. Appointment or discontinuation of share transfer agent. The appointment or discontinuation of the share transfer agent requires necessary disclosure.

Correct Answer: B. An event that requires necessary disclosure. Corporate debt restructuring (“CDR”) is an event that requires necessary disclosure.

Correct Answer: C. Requires necessary disclosure. A one time settlement (OTS) with a Bank requires necessary disclosure.

Correct Answer: B. Necessary disclosure. Reference to BIFR and winding-up petition filed by any party/creditors requires necessary disclosure.

Correct Answer: B. All such communications by the listed entity. Issuance of notices, call letters, resolutions and circulars sent to shareholders, debenture holders or creditors, or advertised in the media by the listed entity require necessary disclosure.

Correct Answer: C. Proceedings of annual and extraordinary general meetings. Proceedings of annual and extraordinary general meetings require necessary disclosure with brief details.

Correct Answer: B. Articles of association and memorandum of association. Amendments to memorandum and articles of association of a listed entity require necessary disclosure in brief.

Correct Answer: B. The schedule of analyst or institutional investor meet and presentations on financial results made by the listed entity. The schedule of such meetings and presentations on financial results requires necessary disclosure.

Correct Answer: B. Part B. Events that should be disclosed if considered material are listed under Part B of Schedule III.

Correct Answer: B. Commencement or any postponement in the date of commencement of commercial production or commercial operations of any unit/division. This is an event that should be disclosed if considered material.

Correct Answer: B. Part B. Change in the general character or nature of business is an event that should be disclosed if considered material, falling under Part B.

Correct Answer: B. Awarding, bagging/receiving, amendment or termination thereof. Awarding, bagging/receiving, amendment or termination of such orders/contracts should be disclosed if material.

Correct Answer: B. Loan agreement(s) (as a borrower) or any other agreement(s). Loan agreements (as a borrower) or other binding agreements not in the normal course of business should be disclosed if material.

Correct Answer: D. Material. Disruption of operations due to natural calamity or force majeure should be disclosed if considered material.

Correct Answer: C. Impact (if considered material). Litigation(s)/dispute(s)/regulatory action(s) should be disclosed if they have an impact and are considered material.

Correct Answer: B. Directors (other than key managerial personnel) or employees. Frauds/defaults by directors (other than key managerial personnel) or employees should be disclosed if considered material.

Correct Answer: B. Key licenses or regulatory approvals. Granting, withdrawal, surrender, cancellation or suspension of key licenses or regulatory approvals should be disclosed if considered material.

Correct Answer: B. Holding of specified securities and shareholding pattern. Regulation 31 requires disclosure of holding of specified securities and shareholding pattern.

Correct Answer: C. Statement of deviation(s) or variation(s) pertaining to various issues made. Regulation 32 requires the statement of deviation(s) or variation(s).

Correct Answer: B. Annual Report. Regulation 34 requires the Annual Report.

Correct Answer: C. Record Date or Date of closure of transfer books. Regulation 42 pertains to the Record Date or Date of closure of transfer books.

Correct Answer: D. 2 days. Information on the website should be updated within 2 days of any change.

Correct Answer: B. Terms and conditions of appointment of independent directors. This information is required to be disseminated on the website.

Correct Answer: B. Composition of various committees of board of directors. The composition of various committees of the board of directors must be displayed on the website.

Correct Answer: B. Code of conduct of board of directors and senior management personnel. The code of conduct for the board of directors and senior management personnel must be displayed on the website.

Correct Answer: C. Vigil mechanism/Whistle-Blower policy. Details of the establishment of the vigil mechanism/Whistle-Blower policy must be displayed on the website.

Correct Answer: B. Policy on dealing with related party transactions. The policy on dealing with related party transactions must be displayed on the website.

Correct Answer: B. Notice of meeting of the board of directors where financial results shall be discussed, and the financial results after approval. This financial information must be displayed on the website.

Correct Answer: C. Annual report. A complete copy of the annual report must be displayed on the website.

Correct Answer: C. Shareholding pattern. The shareholding pattern must be displayed on the website.

Correct Answer: C. Media companies and/or their associates. Details of agreements entered into with media companies and/or their associates must be displayed on the website.

Correct Answer: B. The new name and the old name. The new name and the old name of the listed entity must be displayed on the website for one year after the last name change.

Correct Answer: B. Two newspapers. A listed entity must publish information in two newspapers as per Regulation 47(1).

Correct Answer: B. One National English daily, and one local regional language daily where the registered office is situated. Publishing is required in one National English daily and one local regional language daily where the registered office is situated.

Correct Answer: C. Notice of meeting of the board of directors where financial results shall be discussed. This notice must be published in newspapers.

Correct Answer: B. Financial results, as specified in regulation 33. Financial results along with auditor’s opinions/reservations must be published in newspapers.

Correct Answer: C. Statements of deviation(s) or variation(s) as specified in sub-regulation (1) of regulation 32. These statements should be published quarterly.

Correct Answer: B. Strictures or directions on the basis of inspection reports or other adverse findings. These should also be placed in the public domain.

Correct Answer: B. In the “Notes to Accounts” to the Balance Sheet. The penalty imposed by the regulator should also be disclosed in the “Notes to Accounts”.

Correct Answer: C. In the interests of the investors and depositors. Placing penalty details in the public domain is in the interests of investors and depositors.

Correct Answer: C. Listing Regulations 2015 of SEBI issued under The Companies Act 2013. The section summarises that banks must make disclosures under these regulations.

Correct Answer: C. Accounting Standards. ‘Accounting Standards’ is listed in the Keywords section.

Correct Answer: C. Derivatives. ‘Derivatives’ is listed in the Keywords section.

Correct Answer: B. Testing the reader’s understanding of the unit’s content. The “Check Your Progress” section contains questions to test understanding.

Correct Answer: D. 4. The “Answers to Check Your Progress” section provides answers for 4 questions.

Correct Answer: C. Listing Regulations of SEBI. Listing Regulations of SEBI are mentioned in the Reference section.

Correct Answer: A. Reserve Bank of India (RBI). RBI Circulars are mentioned in the Reference section.

Correct Answer: C. Indian Institute of Banking & Finance (IIBF). “Compliance in Banks” from IIBF is mentioned in the Reference section.

Correct Answer: B. Accounting Policies. Accounting Standard 5 is titled “Net Profit or Loss for the Period, Prior Period items and Changes in Accounting Policies”.

Correct Answer: C. Recognition. Accounting Standard 9 is titled “Revenue Recognition”.

Correct Answer: C. Disclosures. Accounting Standard 18 is titled “Related Party Disclosures”.

Correct Answer: B. (CFS). Accounting Standard 21 is titled “Consolidated Financial Statements (CFS)”.

Correct Answer: B. Income. Accounting Standard 22 is titled “Accounting for Taxes on Income”.

Correct Answer: B. Consolidated Financial Statements. Accounting Standard 23 is titled “Accounting for Investments in Associates in Consolidated Financial Statements”.

Correct Answer: D. Reporting. Accounting Standard 25 is titled “Interim Financial Reporting”.

Correct Answer: C. Contingencies. Additional Disclosures mentioned include those for Provisions and Contingencies.

Correct Answer: B. Ombudsman. Disclosure of Complaints includes Customer Complaints and Awards passed by the Banking Ombudsman.

Correct Answer: A. Accounts. LoCs should be disclosed in the “Notes to Accounts”.

Correct Answer: D. Gross. PCR is the ratio of provision for NPA to gross non-performing assets.

Correct Answer: C. NPAS. Concentration of NPAS should be disclosed.

Correct Answer: C. Statutory. Policies to manage currency induced credit risk should be disclosed as part of financial statements certified by statutory auditors.

Correct Answer: C. Accounts. LCR information should be disclosed under “Notes to Accounts”.

Correct Answer: D. Disclosure. Information should be prepared and disclosed in accordance with applicable standards of accounting and financial disclosure.

Correct Answer: A. Meetings. Information about general meetings and discussion issues should be provided.

Correct Answer: A. Decisions. Disclosure of material events enables investors to make well-informed investment decisions.