Various Bank Audits

Under the legal requirements banks are required to conduct various type of audits, amongst which we offer services of several types bank audits:

• Statutory Audit :

Statutory audit of banks can be defined as an audit to ensure that the financial statements and books of account presented to the regulators and the public are fair and accurate. It is an audit that is prescribed by a different statute such as Income Tax, Reserve Bank of India, Companies Act and so on. The Statutory Audit of Banks is mandatory and, the RBI in association with the ICAI appoints Statutory Auditors for the same. At the end of every financial year, a rigorous statutory audit is conducted in every branch of a bank.

• Concurrent Audit :

Concurrent audit means doing the examination of the financial transactions at the time of happening or parallel with the transaction. It is part of a bank’s early warning system to ensure timely detection of irregularities and lapses. It helps in preventing fraudulent transactions at branches.

• Revenue Audit :

Revenue audit is the audit of items governing income & expenditure of banks, basically this type of audits are conducted with a view to verify the accuracy, relevance of expenditure incurred & Incomes earned by the banks according to applicable latest circulars, notification , Auditors only required to concentrate on the areas which affect revenue items of the banks.

• Credit  Audit :

Credit Audit examines the compliance of sanctions and post sanction procedures laid down by the bank. Risk is inherent part of Bank’s business. Effective Risk Management is critical to any Bank for achieving financial soundness. Credit Audit aims at achieving continuous improvement in the quality of the Commercial Credit portfolio. Duly aligned with Risk

Focused Internal Audit, it examines the probability of default, identifies risks and suggests risk mitigation measure

• Inventories/ Receivables Audit :

The term Inventories Audit in the context of banks refers to verification and valuation of the entire gamut of current assets, current liabilities, loans and advances, diversion of funds, application of funds, accuracy of Inventories statements, arriving at the revised drawing power and any other matter connected with the credit administration by the

banks. The main thrust in Inventories audit therefore, is towards authentication of the quantity, quality, composition and valuation of the Inventories and debtors.

• Information system audit:-

In response to the increasing threat, IT audit units of banks have set to conduct an independent and objective assessment of the organization’s capabilities of managing the associated risks. A first step in meeting this  audit to conduct an IT risk assessment and summarise the findings into a concise report for the audit committee, which can provide the basis for a risk-based, multilayer internal audit plan to help and manage IT risks.

 Our role:-

Our team consist of partners who has completed certificate course on concurrent Audit of banks conducted by ICAI and with a vast experience of 40 years we can perform bank audit services in accordance with the guidance note on bank audits issued by ICAI and following various norms of RBI, The Banking regulation Act, The Companies Act.