Nowadays, various kinds of Audits are undertaken in the Banks like Concurrent Audit, statutory audit, system audit etc. Here in this article the emphasis will be on Concurrent Audit.
The Concurrent Audit is a systematic examination of all financial transactions at a branch on continuous basis to ensure accuracy and due compliance with the internal systems, procedures and guidelines of the bank Reserve Bank of India and Banks have put a great responsibility on Chartered Accountants by appointing them as Concurrent Auditor of branches. Banks feel that concurrent auditors are their eyes and ears.
Nowadays the majority of banks approve the concurrent audit application online via banks official bank site and still many banks accept a manual application in the standard format of bank, if you submit an online application the bank will mail you or an official communication towards your communication address you given in online application. All the banks give the official notification to invite the Chartered Accountant firms to empanel the concurrent audit.
There are various Key Areas of Concurrent Audit namely verification of Loan and other related documents; KYC Norms; Voucher Verification; Cash Management, Collection & clearing of claques; Unit inspection, Verification of Stock Statement, Audited & Projected Financials of borrowers; Verification of daily reports generated (i.e. Balance Sheet, Profit & Loss Account, Exceptional Report, Cash Report signed & stamp by branch manager), Rate of Interest all accounts; Other Security norms like Camera is on running condition, Burglary Alarm is on working condition, Locker area, Cash Locker Etc.; and Verification of all suspicious accounts (New Intermediary, Proxy Account, Sundry Debtors & Creditors Account Account including staff accounts are closely verified.
Follow the Latest circular form Inspection department of concurrent audit. Find out the maximum number of revenue leakage, it is the heart of concurrent audit. Find out the maximum number of observations in the audit report but all are meaningful & effective.
Put the Maximum number of attendance in the branch hence you got the chance to renew the audit assignment. 5. Put Knowledgeable, Qualified, Sincere, Humble staff at bank premises and also visit a chartered accountant at least one per week.
Follow the Scope of Audit which is circulated by head office. Timely Submission of Concurrent Audit Report majority banks deadline is 10th of every subsequent month.
Step-1: Use domain ID and password to unlock the System.
Step-2: You need to generate ID & Password from Department – CBS is the Main Part of Banking System so auditor can only view it.
Step-3: Bank gives you specific audit software to do Concurrent Audit. You need to generate ID & Password from the Department.
The lending of funds is the other core function of the bank. The bank accepts deposits at a certain rate and lends at a higher rate. The margin is the bank’s profit. Lending function ranks higher on the risk factor as there is a possibility of the debt not being recovered. Hence there is a great significance and need for proper documentation.
There are several loans and advances that a bank offers. However, the process for disbursement remains more or less the same. The process for disbursement of loan can be summed up as the transactions such as Building a relationship with the customer, Collection of all requisite documents, Checking the credibility of the customer, and Disbursing the loan and monitoring the loan.
Since the bank earns interest on the rupee it lends, maintaining a high cash balance can result in interest losses. However, banks need to hold enough to fund the ATMs. Hence the bank must achieve a balance.
This is an add on service offered by banks; wherein a customer can make payments towards public utilities through the bank. The auditor will have to verify If standing instructions have been received from customers, then ensure that the same has been noted in the CBS to generate an auto payment and Ensure proper reconciliations of the utility accounts.
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