BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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LFAR generally prepared in questionnaire form
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LFAR is a substitute for statutory audit report
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LFAR stands for Long Form Audit Report
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Statutory auditor should carefully read the LFAR
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Detailed explanation-1: -Annex II-Long Form Audit Report (LFAR) to the Management and the Statutory. Central Auditors of the bank by the branch auditors in case of bank branches. The following paragraphs list the matters which the branch auditors of the bank are required to comment upon in their Long Form Audit Reports (LFAR).
Detailed explanation-2: -The overall objective of the Long Form Audit Report (LFAR) should be to identify and assess the gaps and vulnerable areas in the business operations, risk management, compliance and the efficacy of internal audit and provide an independent opinion on the same to the Board of the bank and provide their observations.
Detailed explanation-3: -The format of LFAR report is in questionnaire format. If there is any important point which is not covered by the questions mentioned in format then in such situation auditor has to also specify that point in LFAR report.
Detailed explanation-4: -Among the positive changes in the revised LFAR are an increased focus on a spectrum of risk management at banks, specific queries on credit assessment, information systems, data integrity, internal financial control, and compliance with regulations.