Computerised Audit is the use of computerised system to conduct audit in an efficient way. It uses technology to collect and gather data, conduct the audit operations and further reporting of the same. It refers to the use of computers to achieve audit objectives. It processes various financial transactions as per the generally accepted accounting principles.
A bank may be defined as a company which collects money from the public in the form of deposits and lends the same to borrower in the form of credit. It is an institution that provides facilities for safe keeping, lending and transfer of money.
Audit is an examination of accounting records, undertaken with a view to establishing whether the correctly and completely reflect the transactions to which they purport to relate. It is the systematic and critical examination and verification of the books of accounts.
Fiscal policy is an important factor of the economy, it is used by governments to influence the economy. These primarily include changes in the levels of taxation and government expenditure.
NPA stands for Non-performing Asset which is any advance or loan that is overdue for more than 90 days.
All the advances and loans sanctioned by financial institutions are considered to be ‘assets’ as they are capable of earning revenue for the lender by the way of generating interest income. However, things do not always work out as planned, a loan is considered bad when it is unable to generate interest, non-payment of principle and doesn’t serve its purpose.
NBFC stands for Non Banking Financial Companies.Non banking financial companies (NBFCs) are institutions that facilitate financial services like a bank but don’t hold a banking license and are not regulated. NBFCs cannot accept traditional demand deposits from the public, such as checks or savings accounts.
GST stands for ‘Goods and Services Tax’. It is a One Nation One Tax. GST was introduced with the intent to demolish the cascading effect which was prevalent before its introduction. The tax that is levied on the value includes the tax that was paid by the previous buyer. This means that the consumer ends up paying tax on tax that was already paid. It increases the price payable of goods and services.
The Reserve Bank of India comes under the organised sector. RBI is the Central Bank of India and the apex financial institution. Every country in the world has a central bank.
The RBI acts as a regulator and supervisor of the entire financial system prevalent across the nation.
Interest refers to a certain amount of money paid on borrowed capital. It is the payment made for using money of another that is borrowed money. It is the cost of of finance for borrowing and it is the revenue from lending money for the lender.
Dividend is the appropriation out of the profits of the company. It is distributed among the shareholders of the company. The term dividend is derived from a Latin word “Dividendum” which means that which is to be divided. Dividend is the part of the annual net profit of the company which is appropriated among the shareholders of the company. Dividend is a share in the annual distributable profits of the company to which the shareholders are entitled when it is formally declared by the company.