Have a clear understanding of the scope and nature of assignment. Study the Account closing...

P.R. Suresh - Hyderabad Branch - 24.03.2015

Audit of Areas other than advances Have a clear understanding of the scope and nature of assignment. Study the Account closing Circular, intimation from HO on the scope of the audit and Instruction on completion of the audit, Manual of instructions of the bank and circulars issued during the year. Follow the instructions fully given by HO while intimating appointment, inensuring a speedy conclusion.


Audit of Areas other than advances

Obtain a copy of the published accounts of the bank and go through the accounting policies and other disclosed policies. Ensure that these accounting policies are implemented by the branch. Whereverthese are not followed, the same should be qualified in the branch auditor's report. Refer to the same in LFAR where questions are asked on the adoption of accounting policies. It is better to complete all the work at the branch, and hand over all the statements & reports to the branch manager and obtain acknowledgement for files. There will be pressure to do a quick, haphazard job. Resist such pressures and do a efficient and speedy branch audit.


Audit of Areas other than advancesIncome Recognition

Recovery Policy

Four way Classification

Financial Statements

Agricultural advances

System based NPA determination


Audit of Areas other than advancesPhysical verifications :

Cash Verification, unused valuable stationery, jewel held as security for jewel loans, loan against deposits

Major customers with working capital limit unit visit

Cash in ATM

Jewel loans

Loan against deposits


Audit of Areas other than advances Premises – Rental increase / pending approval – Contingent liability – accrued liability Bank Guarantees Invoked / Letter of credit devolved closer to balance sheet date – reporting of contingent / clear liability


Audit of Areas other than advances Others : Bank Reconciliation Statement – old items pending adjustment Fixed Assets – FA registerPhysical verificationDate of Asset put to useAssets pending capitalizationDamaged / Discarded Assets/ clear liability


Audit of Areas other than advancesDetails of Expired BG / LC’s

Sundry Deposits items

Test Check of Interest on Deposits

Test Check Interest on Advances

Year end provisions – rent, telephone, security, electricity, communication expenses, leave travel etc.,

Income on Commission etc for more than the year under

audit.


Audit of Areas other than advancesLegal Expenses

Interest on Overdue deposits

TDS on Provision of Interest on Overdue Deposits

Comparitive Analysis of Current year P & L and B/s With Previous year


Audit of Areas other than advances Long Form Audit Report – Issues for consideration

and requirements

Credit AppraisalSanctioning / Disbursement

DocumentationReview / Monitoring / supervision

Annexure to LFAR for advances above 2 Crores –

Auditors duty


Audit of Areas other than advancesTax Audit : - TDS on provision for interest 40 (a)(i)(a) & under TDS

Depreciation w.r.t. Depreciation AccountingClause 34a of tax audit report – mapping and

reporting

TDS refunds and Form15G & 15 H


Audit of Areas other than advancesALM

12 Odd Dates

Capital Adequacy Ratio

Ghosh Committee Report / Jhilani Committee Report


Audit of Areas other than advancesPMRY Certificate

DICGC Certificate

Confirmation that MOC’s of earlier year passed


Audit of Areas other than advancesRBI Circulars

1. Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances

2. Loans and Advances – Statutory and Other restrictions3. Interest Rate on Advances4. Banks Finance to NBFC5. Disclosure in Financial Statements – Notes to Accounts6. Prudential Norms on Capital Adequacy – Basel I


Audit of Areas other than advances.7 Housing Finance8. Guidelines for Relief Measures By Banks in areas

affected by natural calamities9. Frauds – Classification and Reporting10. KYC Norms / Anti Money Laundering AML

standards / Combating of Financing of Terrorism (CFT)/ obligation of banks under PMLA, 2002

11. Lending to Priority Sector12. Lending to Micro, Small & Medium Enterprises13.Wilful Defaulters14.Priority Sector Lending – Targets 15.Basel III Capital Regulations


Audit of Areas other than advancesService Tax rate credits / filing of ST-3. / reverse charge mechanism

Special Mention accounts / Weak Standard

Assets / Potential NPA Advances list – control return

Assigned Limits – Agricultural branches –

accounting treatment – role of auditors.

Fraud by or against the bank


Audit of Areas other than advancesCredit card dues – debit balances in savings bank accounts.

Provision for Restructured Assets

Certificate of Lending to Sensitive Sector

Interest Sub vention – Agricultural advances

Interest Sub vention – Technology Upgradation Fund Scheme

Interest sub vention – Housing Loans below Rs.10 Lakhs

BS-8 Provision for sacrifice


Audit of Areas other than advancesAnti Money Laundering & Suspicious transaction reporting

Customer id – splitting – duplication


Audit of Areas other than advancesPre audit communication with branch

Audit Program

Management Representation Letter

Documentation in audit

Discuss Issues with branch management

Peer Review Requirements


Audit of Areas other than advancesThanks to each one of you for the special opportunity to interact and learn from this

experience

Members of the Hyderabad branch have always been sharp, erudite and quite a fun to address and

become knowledgeable

Special thanks to the Chairman Raghunandan for inviting me

I can be contacted at [email protected] or

9845058988

mailto:[email protected]


Audit of Areas other than advancesI can be contacted at [email protected]

or9845058988

THANK YOU ONCE AGAIN

mailto:[email protected]

Have a clear understanding of the scope and nature of assignment. Study the Account closing...

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