Bank audit

Stat Audit 1558 views 7 replies

CMA KNVV Sri Vidya - Sri Kanth

C.A.Final (New) ICWAI FINAL (New)

11269 Points Joined November 2008

Dear FRNDS ,

1. Cash Verification :

We should perform the cash verification

It consists of two categories

1. Hand Cash

2. Chest Cash ( Only in case of Large Banks )

First we should check the hand cash before it is handed over to the counter to perform tranactiopns , hand cash means the cash which is with drawn from the chest for performing the transactions . (current Day Transactions )

Next ur supposed to verify the chest cash

1. Check whether the opening balance has been correctly transfered to the next day (i.e. Previous day closing Balance become Current day opening Balance) or not.

2. Total Cash verification i.e. physical verification of cash with books of accounts.

Replies (7)

CMA KNVV Sri Vidya - Sri Kanth

C.A.Final (New) ICWAI FINAL (New)

11269 Points Joined November 2008

Next , Ur supposed to Verify the Loans of the Bank

Categories of Loans

1. Gold Loans

2. Educational Loans

3. Personal Loans

Etc

In case of Loans first Verify The

1. Loan Agreement

2. Sanctioning Letter

3. For How Many Years loan has been borrowed , RAte of Interest ( compounded or simple ) etc

4. Whether the borrower is making the payment correctly or not ( i.e. as per the agreement ) ,

5. U should Also verify whether Photos has been Attched are not

6. Verify the ITR (Income Tax Return ) ,PAN , BAnk Statement etc

CMA KNVV Sri Vidya - Sri Kanth

C.A.Final (New) ICWAI FINAL (New)

11269 Points Joined November 2008

Other the Above Points u should verify

In Case of GOld Loans , (other areas u should verify )

There are two types of Loans

1. AG loans

2. PG Loans

1. AG Loans - Agriculture Gold Loans

In Case of AG loans , verify the Borrower's Pattadari Pass Book ( Book Stating that the person has loan at ...... place .. etc)

the name n photo should match with loan agreement

Verify the signatures

2. PG Loans - Personal Gold Loans

In case of PG Loans verify the PAN card , Ration CArd , ITR ETc as a Proff

CMA KNVV Sri Vidya - Sri Kanth

C.A.Final (New) ICWAI FINAL (New)

11269 Points Joined November 2008

In case of Loans Other Areas to be noticed are

For wat purpose the Loan is taken

Security - In case of security , Wat type of security has been kept by borrower

In case if the borrower has kept a house property

verify the TITLE DOCUMENTS - Documents stating that the property belongs to the borrower .

LINK DOCUMENTS - u should verify the documents related to the earlier persons . i.e Borrower name is D ... HE got the property from Mr .C. and Mr.C got the property from Mr .B

U hsould verify the documents stating transfer of the property frmo the transferor to the transferee ..

E.C. - Encumberance Certificate

Cerficate stating that the property is free from pledge mortgage etc

LEGAL OPINION - An advocate has to give a legal opinion on the doucuments eated to the property ..