Banking · Bank Auditing

Consider the following statements regarding bank branch internal audits and choose the correct option: Statement 1: The operational audit of a bank branch involves the verification of 'Day End' reports to ensure that all vouchers generated during the day are physically present and authorized. Statement 2: The use of data analytics by auditors has made it possible to verify 100 percent of transactions in high-risk areas like NEFT/RTGS rather than relying solely on sampling. Statement 3: An inspection report must include a section on 'Compliance Culture' which assesses how effectively the branch has rectified past lapses. Statement 4: The auditor is entirely exempt from reviewing interest calculations since it is handled error-free by central automated servers. Statement 5: A 'Management Representation Letter' is provided by management confirming the accuracy of information provided during the audit. Statement 6: During a gold loan audit, the auditor must physically weigh 100% of the pledged ornaments to maintain LTV limits. Statement 7: If a branch is classified as 'High Risk' under Risk Based Internal Audit (RBIA), the next audit must be conducted within a shorter regulatory interval (typically within 6 months).