Question

A Chartered Accountant (C

  • A director on the board of a PSB must compulsorily:
A Approve all audit-related lending decisions Correct Answer Incorrect Answer
B Participate in decisions involving their clients Correct Answer Incorrect Answer
C Dissociate from decisions involving their/firm’s clients and sign a covenant Correct Answer Incorrect Answer
D Delegate such decisions to external auditors Correct Answer Incorrect Answer
E Seek prior approval from RBI before abstaining from such decisions Correct Answer Incorrect Answer

Solution

The CA director shall be required to compulsorily dissociate themselves from the entire process and sign a covenant to this effect.

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