Bank Audit Basics – Brief
As we all are aware about that the season of Statutory Bank Audits is on its verge. It’s the time when
professionals are getting the straps of their boots ready to have a crisp walk. I thought it desirable to
pen down a few things, which are basic and my experience of Bank Audits and having worked in
banking industry post qualification and experiences with two of the big banks (StanC and Axis Bank)
and having done the Statutory Bank Audits of PSU Banks.
The Key Deliverables for understanding Bank Audit are: –
1. Long Form Audit Report (LFAR)
2. Memorandum of Changes (MOC)
3. RBI Circulars and Notifications
4. Tax Audit Report of Branch/H.O.
5. Audit Report of Bank Branch/H.O.
6. Other Certifications/Reports
7. Performing Risk Based Audit Assessment and Checking of Advances
8. Compliance with Capital Adequacy Norms and SLR, CRR etc.
9. Reviewing Concurrent Auditors Findings and Observations
10. Checking the Loans & Advances given in last 12 months period
11. Analysing Revenue Leakages and Reporting thereof