Bandhan Bank Audit Staff Interview Questions and Answers

The major risk associated with banks is credit risk.

• Credit risk is the risk of borrowers defaulting on their loans or not making payments on time.

• Banks face credit risk when lending money to individuals, businesses, or other financial institutions.

• Credit risk can lead to financial losses for banks if borrowers fail to repay their loans.

• Banks use credit analysis and risk management techniques to assess and mitigate cred...read more

The process of audit involves planning, executing, and reporting on the examination and evaluation of an organization's financial or operational processes.

• Planning phase involves understanding the organization's objectives, risks, and controls.

• Execution phase includes gathering evidence, testing controls, and identifying any issues or discrepancies.

• Reporting phase involves communicating findings, recommendations, and c

NPA stands for Non-Performing Assets, prudential restructuring is a process to improve the financial health of a company, and financial outsourcing is the practice of contracting out financial activities to a third party.

• NPA refers to loans or advances that are in default or are in arrears of scheduled payments for a specified period.

• Prudential restructuring involves making changes to a company's financial structure to...read more

STR stands for Suspicious Transaction Report and FATCA stands for Foreign Account Tax Compliance Act.

• STR is a report that financial institutions must file with authorities when they suspect a transaction is related to money laundering or terrorist financing.

• FATCA is a US law that requires foreign financial institutions to report information about accounts held by US taxpayers to the IRS.

• Both STR and FATCA are important...read more

Money mule accounts are bank accounts used by criminals to transfer illegally obtained money, often unknowingly by the account holder.

• Money mule accounts are typically opened by individuals who are recruited by criminals to receive funds from illegal activities.

• The account holder may be unaware that they are participating in illegal activities, believing they are simply helping with a legitimate transaction.

• Criminals u...read more

FEMA guidelines refer to the regulations and recommendations set by the Federal Emergency Management Agency to help prepare for and respond to emergencies and disasters.

• FEMA guidelines cover a wide range of topics including disaster preparedness, response, recovery, and mitigation.

• These guidelines provide recommendations for individuals, communities, and organizations to effectively respond to emergencies such as natur...read more

Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

• Internal Audit evaluates the effectiveness of risk management, control, and governance processes within an organization.

• It helps identify areas of improvement and provides recommendations for enhancing internal controls.

• Internal Audit helps ensure compliance with laws, regulations...read more

Risks in banking industry include credit risk, market risk, operational risk, and regulatory risk.

• Credit risk: the risk of borrowers defaulting on loans

• Market risk: the risk of financial losses due to changes in market conditions

• Operational risk: the risk of losses due to internal processes, people, and systems

• Regulatory risk: the risk of non-compliance with regulations and laws