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Risk Focussed Internal Audit (RFIA)

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Risk Focussed In

Part 1 of 1 -

Question 1 of 30 1.0 Points

Which of the following is not a feature of the RFIA system?

A. Provision for capturing trend of risk introduced

B. Integration of credit audit score with CC audit report introduced

C. Value statements introduced to reduce normalization

D. Business parameters merged with risk assessment

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Question 2 of 30 1.0 Points

“Verifying compliance of Audit Reports” is a value statement relating to which category?

A. Branch Management

B. Fraud Prevention

C. Control Environment

D. Norms for High Risk Areas

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Question 3 of 30 1.0 Points

The risk and business parameters are evaluated on a total score of ______ and
_______respectively.

A. 500 and 500

B. 1000 and 500

C. 500 and 1000

D. 1000 and 1000

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Question 4 of 30 1.0 Points

Irrespective of the scores obtained by it a branch will be rated “Not Satisfactorily Run” if –

A. Minimum score is not obtained on Customer Service Parameters

B. Minimum score is not obtained on new business Parameters

C. False certifications of serious nature in BMMC

D. Minimum score is not obtained on NPA reduction

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Question 5 of 30 1.0 Points

What is the primary criteria used under RFIA for segregating the branches:

A. Region or location

B. Inherent risk

C. Size

D. Incumbency

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Question 6 of 30 1.0 Points

RFIA refers to -

A. Risk Focused Intensive Audit

B. Risk Focussed Internal Audit

C. Risk Finalization in Internal Audit

D. Risk Fundamentals of Intensive Audit

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Question 7 of 30 1.0 Points

Which of the following is not one of the risk parameters in RFIA?

A. Credit Risk Management

B. Market Risk Management

C. Operational Risk Management

D. External Compliances

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Question 8 of 30 1.0 Points

What score would put a unit under Marginally Adequately Controlled Unit

A. 700- 710

B. 700-720

C. 700-725

D. 700-730

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Question 9 of 30 1.0 Points

Risk Based Supervision is based on the –

A. Global Economic risks

B. International Currency risks

C. Risk profiles of banks

D. Regional Risks

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Question 10 of 30 1.0 Points

ACB Stands for :

A. Audit Committee of Bank

B. Committee of Bank

C. Apex Committee of Board of Directors

D. Audit Committee of Bank’s Board of Directors

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Question 11 of 30 1.0 Points

The Audit Report Formats (ARFs) are

A. The same for all branches

B. The same for all BPR entities

C. The same for branches and BPR entities

D. Different formats for different categories of branches/ BPR entities

Question 12 of 30 1.0 Points

Which of the following is not a pillar of the Second Basel Accord?

A. Minimum Capital Requirement

B. Supervisory Control

C. IMF inspection

D. Market Discipline

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Question 13 of 30 1.0 Points

Which of the following is a Pre- Sanction Requirement in Credit Risk Management:

A. Timely Renewal of Accounts

B. Filing of charges with ROC

C. Insurance covers for assets charged

D. Verification of Title Deeds

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Question 14 of 30 1.0 Points

What are the scores allotted for Self-Audit in the ARF?

A. 10

B. 15

C. 20

D. 30

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Question 15 of 30 1.0 Points

Risk audit matrix involves–

A. Assessment of Magnitude of risk

B. Assessment of Frequency of risk

C. Preparing a risk matrix

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Question 16 of 30 1.0 Points

Which of the following is correct with effect from 1.4.2006

A. Business parameters have been delinked from risk evaluation

B. Business parameters have been merged with risk evaluation

C. Rating is done based on risk alone

D. Rating is done on the basis of business performance

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Question 17 of 30 1.0 Points

Value Statements relating to “Custody & handling of keys” would come under:

A. Branch Management

B. Fraud Prevention

C. Control Environment

D. Norms for High Risk Areas

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Question 18 of 30 1.0 Points

What is the maximum period within which audit should be carried out of a branch downgraded
by 2 stages in successive audits:

A. 6 months

B. 8 months

C. 9 months

D. 12 months

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Question 19 of 30 1.0 Points

If the score awarded under an audit query is less than _______ of the eligible score, it will be
treated as very high risk.

A. 25%
 B. 35%

C. 45%

D. 50%

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Question 20 of 30 1.0 Points

The purpose of RFIA to focus the audit on -

A. High business areas

B. High profit areas

C. High Volume areas

D. High risk areas

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Question 21 of 30 1.0 Points

At what percentage of score a branch will be rated “Unsatisfactory”.

A. <60%

B. <55%

C. <50%

D. >50%

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Question 22 of 30 1.0 Points

An audit plan should take in to account –

A. The Magnitude & Frequency of risk

B. The frequency of risk

C. Both the above

D. None of the above

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Question 23 of 30 1.0 Points

RFIA segregates the branches in to how many groups:

B. 3

C. 4

D. 5

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Question 24 of 30 1.0 Points

What minimum percentage a branch needs to score to get a “Well Controlled” rating.

A. 75%

B. 80%

C. 85%

D. 90%

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Question 25 of 30 1.0 Points

As part of Risk Based Supervision initiative, banks are required to put in place –

A. Risk Focussed Internal Audit

B. Strengthened MIS

C. Training in Risk Management

D. All of the above

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Question 26 of 30 1.0 Points

Branches with high value advances and high interest income are likely to be found in

A. Category I

B. Category II

C. Category III

D. None of the above

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Question 27 of 30 1.0 Points

What is the maximum penalty for false compliances.

B. 30

C. 40

D. 50

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Question 28 of 30 1.0 Points

Which group of branches would have higher weightage in ARF for External Compliances

A. Category I

B. Category II

C. Category III

D. All have equal marks

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Question 29 of 30 1.0 Points

Which is a systematic and timely examination of financial transactions on an ongoing basis to

A. Self Audit

B. Concurrent Audit

C. Internal Audit

D. Management Audit

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Question 30 of 30 1.0 Points

Chairman oversees the total Audit function of the Bank. State True or False

A. true

B. false

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Submit for Grading

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