- Key factor of concurrent audit
The word coincident itself defines its which means, coincident means that happening at the time. Concurrent Audit means that doing the examination of the money dealings at the time of happening or parallel with the transaction.
Key factor of concurrent audit
- Money Balance: Every morning we tend to shall have to be compelled to check the money balance Book of Bank during which all details relating to cash balances are written on day after day and manager and cashier do the authorization. Once within the month, we’ve got to try to physical verification of money in hand with the bank and ATM (if any) amazingly and if any discrepancy found shall be rumored within the report.
- KYC Policy: This is the foremost sensitive and crucial part of the coincident audit. KYC stands for “Know Your Customer”, a term used for client identification method. It involves creating cheap efforts to work out the true identity of the beneficiary of the account, supply of Fund, nature of customer’s business, etc, that successively helps the bank to manage their risk providentially. The key things we tend to observe in KYC checking are identity proof and address proof. We should always make sure that whether or not AOF (Account gap Form) is correctly stuffed or not. The introducer United Nations agency introduces the new client to the bank ought to have maintained his/her account for a minimum of vi months while not falling beneath down account. In AOF there are mentioned the specified documents to open the account in a bank. Recently run has punished a number of the nationalized banks and alternative huge banks for non-adherence of KYC norms and therefore as a coincident auditor we must always make sure the KYC adherence of the shoppers and any irregularities should be rumored punctually within the report. We should always additionally discuss the key irregularities with branch officers and appearance forward for the answer.
- Loans and Advance Checking: The most sensitive part of banking operation s Loans and Advances and their compliances. To visualize recently sanctioned loans and advances we’ve to raise the Loan Manager of Bank for Document Register and they’ll offer America that. Document register is nothing simply a register maintained by a bank for his or her advances, during which they typically write the name of the party, details of sanction created, papers submitted by a party to the bank, etc. and is verified by each credit manager and Manager of the Branch.
- Deposit: Generally, we’ve got to appear through some high balance account and therefore the path of dealings. If there’s any non-operative account then we’ve to form an effort to form them operative. we’ve got to check whether or not interest code and rates are properly fed into the system, any amendment in interest rates are effectively fed into the system or not, etc.
- Forex: If your auditing branch is permitted to try to interchange transactions then you’re lucky that you just ought to understand forex. In forex, we glance through the rate amendment and their correct valuation in books. On the market interchange with the bank, profit and loss in interchange. There are some run tips relating to interchange and that we have to be compelled to see the adherence of same.
- Financial gain leakage: This is the foremost necessary and sensitive part of a coincident audit. In most of the banks their ar some financial gain run and that we have to be compelled to verify that. Usually financial gain run arises thanks to the following reasons and that we have to be compelled to look at that:
- Undercharge of process fee, direct fee, and alternative charges by the bank throughout disbursement of loans.
- Wrong feeding of interest rates within the system.
- Wrong calculation of profit in forex dealings etc.
To overcome these sorts of revenue losses of the bank we tend to as AN auditor undergo the calculation and genuineness of the various charges. Tho’ banks are engaged on extremely smart software packages however thanks to human errors such types of run arise and that we have to be compelled to minimize those. Each the ICAI and Bank provide the manual for revenue audit if we tend to undergo that rigorously then we will perceive the run a lot of effectively. We’ve got to get varied MIS reports from the system and analyse them. If the bank undercharges the fees then it lost its financial gain & the performance of the bank appearance weak thanks to this reason its share on the market falls. On the opposite hand, if the bank will overcharge such things then the false performance of the bank is shown and the client is also misguided thanks to this. It’s the prima facial duty of the auditor to shoe verity and truthful performance of the shoppers.
- Housework and computer: As a coincident auditor, we’ve got to visualize the overall housework maintenance of the branch. Whether or not the branch is found in a safe space or not, what safety vaults are adopted by the bank, the safety of lockers, computers, software packages, and its security, etc.
- Remittance: It is additionally a very important job of the bank to supply payment facilities to their client. We tend to as AN auditors ought to check the path of payment. If the payment is created in a foreign country then adherence to interchange Management Act, 1999, run tips, etc did or not.
- Others: There are alternatives such as a lot of fields of banks. And as way as attainable we’ve got to hide all the areas, as a result of there is also fraud-prone areas. We’ve got to check the clearing method of cheque, Bills for assortment and alternative bills ought to be checked properly.