3. What are the necessary factors, information and elements that the auditor should know to

Fully understand and obtain knowledge about the business of bank entities?

4. Describe the nature and relevance of Internal Control in the banking operations.

5. What are the relevant assertions necessary in relation to the following particular items in the

Financial Statements. Explain the relevance.

A. Balance with other Banks (Due from Other Banks)

B. Money Market Instruments

C. Securities Held for Trading Purposes

D. Portfolio Investments

E. Investment in Subsidiaries and Associated Entities

F. Loans , Real Properties Owned and Acquired

G. Accounts with Depositors

H. Capital and Reserves

I. Provisions, Contingent Assets and Contingent Liabilities - Derivatives and Off Balance Sheet Financial Instruments

J. Interest Income and Interest Expense

K. Provision for Loan Losses

L. Provision for Taxes and Income

M. Related Party Transactions - Fiduciary Activities

N. Notes to Financial Statements