Ch 6 · Audit of Banks & NBFCs

5 concept points · 3 formulas · 4 exam-critical points.

📘 Core concepts

• 1Banks audited under Banking Regulation Act + Companies Act; RBI guidelines.
• 2LFAR (Long Form Audit Report) submitted to bank management.
• 3NPA classification & provisioning — verify objectively (90-day overdue norm).
• 4Concurrent audit: branches with high turnover or specified categories.
• 5NBFC audit — RBI directions on income recognition, classification, provisioning, prudential norms.