Jaiib exam 2025 – AFM important questions MCQS quiz -11

Jaiib exam 2025 AFM important questions MCQS quiz-11

Jaiib exam quiz 2025: The Jaiib exam is planned for 2025 by IIBF. Here we regularly offer quizzes on Jaiib AFM MCQ. You can regularly try the quizzes to prepare for the coming Jaiib exam. The quizzes are module-wise and in terms of unity. You can try the Jaiib AFM quizzes of the links below and improve your preparation by practicing regularly. These quizzes help you to increase your score in the Jaiib exam and guide you to delete the exam on your first attempt.

Q.1 Which of the following statements is best reflected the role of audit as defined in an introduction to Indian government accounts and audit and its coordination with the Companies Act, 2013?
A. Audit mainly serves as a tool for internal financial control, giving business leaders a complete discretion about financial decisions without external supervision.
B. Audit acts as a protection against financial irregularities, as a result of which accounts accurately represent financial facts and expenses, comply with the principles of regularity and decency, as required by the Companies ACT, 2013.
C. The Companies ACT, 2013 regards Audit as an optional function, allowing companies to decide whether financial statements require independent verification.
D. The role of an auditor, as defined in Indian government accounts, is strictly limited to government institutions and does not extend to business entities under the ACT Companies, 2013.

Q.2 Which of the following statements is best reflected the impact of computer -supported audit techniques (CAATs) on modern auditing?
A. Caat’s have eliminated the need for auditors to evaluate internal controls and accounting systems, because automated data processing ensures accuracy and reliability.
B. Caat’s have completely replaced traditional auditing, making manual audit techniques superfluous and the need for professional judgment in audit procedures are eliminated.
C. The introduction of CAATS has removed all inherent limitations of audit, so that auditors can examine every transaction and offer absolute certainty instead of just an opinion.
D. The use of CAATs has transformed audit procedures from manual verification (‘sign’) to digital analysis (‘clicks’), allowing auditors to perform more efficient and more effective audits within an automated environment.

Q 3 Which of the following statements best describes the role of internal audit at banks, as emphasized by the Reserve Bank of India (RBI)?
A. A strong internal audit function is essential for improving the effectiveness of a bank’s internal control system by identifying proactively emerging risks and ensuring that there are appropriate mitigation measures.
B. Internal audit at banks should mainly be a post-mortem exercise, the revision of transactions from the past without actively contributing to risk identification or improvements for internal control.
C. The role of internal audit at banks is limited to guaranteeing compliance with the regulations and does not extend to assessing risk management frameworks or internal control mechanisms.
D. With progress in banking technology, the need for an internal audit function at banks has been considerably reduced, because automated systems now offer complete control over financial risks.

Q.4 Which of the following statements best describes the independence and authority of the internal audit function in a bank?
A) The head of the internal audit (HIA) may only report to the business verticals to guarantee practical insights.
B) The HIA must be a senior executive for the authority to communicate with each staff member and to access all necessary data.
C) The role of the HIA must be rotating and they must not serve for longer than a year.
D) The internal audit function must have limited access to confidential records to prevent abuse.

Q.5 What is the recommended minimum term of office for the appointment of the head of the internal audit (HIA) in banks where internal audit is not a specialized function?
A) A year
B) two years
C) Three years
D) Five years

Q.6 Which of the following does best describe the purpose of simultaneous audit at banks?
A) to replace the legal audit by ensuring that all transactions are verified annually.
B) to investigate transactions when they occur or as close as possible to their performance.
C) to perform a one -off audit at the end of the financial year to detect irregularities.
D) to assess the financial statements after they have been completed by the Bank’s management

Q.7 Which of the following activities is not a primary focus of simultaneous audit at banks?
A) Checking the daily maximum compliance with the cash balance.
B) ensure that KYC standards are followed.
C) Perform legal audit procedures for financial reporting.
D) verifying the correct documentation of new loan expenditure.

Q.8 What is one of the most important objectives of internal audit at banks?
A) to replace legal audits that are performed by external agencies.
B) to guarantee the trust of the public by detecting fraud, errors and irregularities.
C) to concentrate exclusively on financial reporting without considering governance risks.
D) to perform one -off audits at the end of the financial year.

Q.9 Which of the next is not an important aspect of internal audit at banks?
A) Evaluating and improving the effectiveness of risk management.
B) Performing independent risk-based internal audit procedures.
C) verify legal compliance for annual tax applications.
D) Analysis of financial information using non-financial data

Q.10 What is the primary objective of information systems (IS) Audit at banks?
A) to ensure that legal audits include IT-related checks and compliance.
B) to independently assess the effectiveness of internal checks in the management of IT risks.
C) to replace internal audit functions with a focus exclusively on cyber security.
D) to perform periodic checks on IT -hardware without considering software

Q.11 According to RBI guidelines, which of the following is not an important focus area of ​​information systems (is) audit at banks?
A) Planning of business continuity
B) Cyber ​​fraud prevention
C) Awareness of customers and legal aspects
D) Physical money management

Q.12 Which of the following is a primary advantage of using computer -supported audit techniques (CAATs) in is Audit?
A) Reducing the need for internal audits by externalizing all IT-related functions.
B) Improving audit efficiency and effectiveness, in particular in critical financial and regulatory areas.
C) Fully replacing human auditors with automated audit software.
D) Restricting audit procedures to manual verification of financial statements

Q.13 Which of the next is a primary focus of legal audit at banks?
A) Performing a detailed overview of each bank transaction.
B) Verifying compliance with legal standards such as CRR, SLR and Priority Sector Lending (PSL).
C) replacing simultaneous and internal audits by independently revising all daily transactions.
D) Auditing only the IT systems and cyber security frameworks of the bank

Q.14 Which statement is not true about legal audit at banks?
A) It is mandatory by the Banking Regulation Act, 1949.
B) It is carried out by a legal auditor to verify the financial statements independently.
C) It investigates all complicated bank transactions in detail.
D) It trusts reports of simultaneous and internal audits for test control

Q.15 Which of the following statements is correct with regard to the appointment of legal auditors at banks?
A) The Reserve Bank of India (RBI) directly appoints legal auditors for all banks in India.
B) Legal auditors for banks in the private sector are appointed by the board of directors.
C) Legal auditors for banks in the public sector are appointed by their board of directors according to the RBI guidelines.
D) The Institute for Chartered Accountants or India (ICAI) Only prepares the Auditors panel for banks

Q.16 What is the primary objective of income audit at banks?
A) to revise compliance with the bank with legal liquidity and capital standards.
B) to identify cases of income leaks, including leakage of interest and other costs.
C) to investigate all financial transactions in detail on detecting fraud.
D) to replace internal and simultaneous audits with a full financial assessment

Q.17 Which of the following statements best describes the purpose of stock and progress in banks?
A) to ensure that the stock and book debt statements submitted by borrowers accurately display their financial position.
B) to carry out a general financial audit of all credit accounts, regardless of the size.
C) to replace legal and simultaneous audits by concentrating exclusively on verification of loans.
D) to evaluate the internal stock management and stock management processes of the bank

Q.18 What is the primary objective of a forensic audit in banking?
A) to guarantee compliance with the standards for the legal financial report.
B) to verify the accuracy of shares and book debt declarations of borrowers.
C) to detect fraud, incorrect presentation and financial irregularities for legal proceedings.
D) to evaluate the effectiveness of the internal control systems of a bank

Q.19 What is the main objective of a management audit at banks?
A) to detect financial fraud and irregularities for legal proceedings.
B) to assess compliance with legal banking instructions and guidelines.
C) to evaluate the efficiency of management when using resources, strategic planning and activities.
D) to verify the accuracy of financial statements and accounting data

Q.20 What is the primary purpose of a tax audit, including GST -Audit, at banks?
A) to verify the accuracy of tax returns and to ensure compliance with tax laws.
B) to assess the efficiency of management and the use of the bank.
C) to detect fraud and financial incorrect representation of cases for legal proceedings.
D) to evaluate the effectiveness of internal controls and risk management policy

Answer:

Q1: B
Q2: D
Q3: A
Q4: B
Q5: C
Q6: B
Q7: C
Q8: B
Q9: C
Q10: B
Q11: D
Q12: B
Q13: B
Q14: B
Q15: C
Q16: B
Q17: A
Q18: C
Q19: C
Q20: B

Watch the video below for a detailed solution with a statement

https://www.youtube.com/watch?v=ZBAKKZN51HA

Bilingual Koop Jaiib Mahaacombo Online Course

Click here to buy Jaiib Mahacombo Online Course (English Medium)

3