1. Concurrent Audit of Bank
  2. Evolution of Concurrent Audit of Bank
  3. The objective of Concurrent Audit of Bank
  4. Commencement of Concurrent Audit of Bank
  5. Loans and Advance in Concurrent Audit of Bank
  6. Working File

Concurrent Audit of Bank

The concurrent audit could be a systematic and timely examination of economic transactions on an everyday basis to confirm accuracy, legitimacy, compliance with procedures, and tips. It’s an constant analysis of the banking transactions to work out whether or not the inner management mechanisms area unit effectively operating and at the same time determine areas of improvement to reinforce potency. 

Evolution of Concurrent Audit of Bank

The concurrent audit was alive in giant and exceptionally giant bank branches, it was formally introduced by the bank of Asian country vide its circular of Gregorian calendar month 1993. In its same circular, the banking regulator explained synchronous audit as being “an examination that is contemporaneous with the prevalence of transactions or is dole out as close to it as potential. It {attempts| attempts |tries} to shorten the interval between a group action and its examination by a freelance person.”

The objective of Concurrent Audit of Bank

The first objective of the introduction of a proper system of synchronous audits in banks was to function a body support to branches.  The run batted in circular additionally processed that synchronous audit is a management method.

  • To guarantee compliance of set down systems and procedures. 
  • To examine books of accounts, records, and registers to confirm that they’re maintained by the prescribed systems.
  • To guarantee adequate measures are being taken before stopping future frauds, etc., to avoid difficulties, which can arise.
  • To notice and arrest any escape of financial gain if any. Evaluating the standard of client services provided and giving helpful suggestions.
  • To assess the overall performance of the branch whereas assessing productivity and profit and to supply helpful comments on the idea of an audit conducted. Restriction of the matter mentioned on the spot with the assistance of the involved officers.
  • To report any unskillfulness at any operational level.

Commencement of Concurrent Audit of Bank

Checklist or flow until commencement is given below:

On receipt of appointment letter:

  • Write for No Objection to the immediate previous auditor
  • Send an Acceptance letter at the side of the statement of Fidelity, Confidentiality, etc.
  • Contact the several Branch Manager – for program, arrangement, and standing and standing

To carry with branch throughout their visit to the branch:

  • Authorization Letter
  • Necessary tips
  • Various Formats
  • Letterhead of the branch

Audit Programme

  • Allocation of labor
  • Commencement of the work as per schedule

Loans and Advance in Concurrent Audit of Bank:

  • Fulfillment of KYC norms and correct fling of AOF.
  • Whether CIBIL (Central data Bureau of Asian country Ltd.) report is nice or not. Higher points in the CIBIL report show the upper believability of that party.
  • Proper documents to sanction the loan are submitted by the party or not like Project Report, past few years’ statements of affairs and projected statement of affairs if the project is new then full proof projection and punctually approved by a comptroller or a skilled on several fields.
  • If the loan is a consumer loan then the purpose of the loan ought to be mentioned, for vehicle loan RC i.e.  Joint registration with the transport department is needed at intervals one month from the date of purchase of the car and the copy of the original invoice is additionally needed.
  • Details of primary and collateral security encumbered with the bank. Creation of charge with the mythical monster.
  • The type ought to be signed by a minimum of one supporter.
  • For CC (Cash Credit) account party shall be got to submit a stock statement at intervals seven days from the top of several months. And that we ought to get to check the stateless person (Drawing Power) calculation.
  • See the Insurance register to verify the expiration of insurance of stock and securities encumbered with the bank.
  • We’ve to envision the account of the party and see the group action there if any doubt arises then that ought to be cleared.
  • NPAs and potential NPAs are to be checked fastidiously. And see the hassle created by banks to recover the number from NPAs
  • See the regularity in payment of interest, installments, etc.
  • If an accidental limit is provided by the bank then check the reimbursement of same and correct functioning of account as a result of no accidental limit will be provided to irregular advance. Accidental limit suggests that providing some quantity to AN existing client briefly once the mounted limit provided by the bank is insufficient for disbursal. It ought to be repaid at intervals of fifteen to thirty days. Typically there’s a limit in providing accidental limits that vary from bank to bank.

Working File

The synchronous auditor ought to keep all the operating papers on record that are utilized in finalizing the reports.

The following papers will be unbroken in the permanent audit file:

  • Letter of engagement, undertaking/comment by the firm to the bank.
  • Audit list.
  • Information concerning branch business, data, nodal officer, the standing of the branch, whether or not computerized/parallel class of branch, etc.
  • Performance of monthly, quarterly, annual report revenue report. 
  • Correspondence with the bank for any matter.

About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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