Question

The basis for payment of audit fee for primary land mortgage bank is

• A. The aggregate of loans issued and that recovered during the year under audit
• B. The working capital for the audited period
• C. The gross income earned during the period
• D. None of these

Answer 1

Answer:

A. The aggregate of loans issued and that recovered during the year under audit

The basis for payment of audit fees for primary land mortgage banks is the Co-operative Societies Act, which applies to these banks. The Act requires that the accounts of every co-operative society be audited at least once a year by the Director of Co-operative Audit.