can anybody provide me the chk list for qtrly concurrent audit report for a bank....?
7 Replies
MAHESH GARG
(AUDIT EXECUTIVE)
(334 Points)
Replied 22 June 2011
Clearing
i. Proper accounting of inward and outward clearing on daily basis.
ii. proper accounting of counter returns, inward and outward. In respect of cheques returned by other banks whether respective customer's account are debited.
iii. Whether clearing difference arose genuinely and is duly adjusted?
iv. Whether safeguards are observed to ensure proper handling and custody including returned instruments?
v. If the branch is independently handling clearing, whether the clearing account is brought to nil every day, if not, comments to be noted down.
vi. Whether service charges/incidental charges as prescribed are charged for the cheques returned in clearing.
vii. Whether drawings are allowed against unclear cheques. Whether such cheques are referred through prescribed register and passed by the Controlling Officer, if the drawings exceed the prescribed limit whether these are reported to the Controlling Authority. Examine whether interest was charged and report such omission for rectification.
MAHESH GARG
(AUDIT EXECUTIVE)
(334 Points)
Replied 22 June 2011
Deposits of Bank Concurrent Audit
i. Verifying whether proper introduction has been obtained on new accounts opened and credentials of introducer(s) verified.
ii. Verifying whether all relevant documents are obtained at the time of opening of accounts viz. Partnership Deed, Articles & Memorandum of Association, Trust Deed and Bye-laws etc.
iii. Verifying whether photographs of account holders are obtained, attested and pasted/ stapled to the Account Opening Form.
iv. Verifying whether the payment of Term Deposit beyond Rs.20, 000/- is done through the credit of Current/Savings Bank A/c. or by Manager's cheque.
v. Verifying all interest payments above cutoff amount say Rs. 3000/- of the previous day with regard to its accuracy.
vi. Verifying whether service charges for the return of cheques, issue of cheque books, carrying out standing instructions and minimum balance charges are levied as per prescribed norm
MAHESH GARG
(AUDIT EXECUTIVE)
(334 Points)
Replied 22 June 2011
INTERNAL CONTROL
Check whether -
1. Vault Register is maintained up to date and tallied with cash balances in the vault.
2. a) BIN books are maintained with full particulars like cash taken out and kept inside,
b) balances as per BIN books tally with physical holding in the respective BIN
c) entries in the BIN books have been initialled by both the key holders.
3. Chest withdrawals / deposit book, register for sorting notes,, cut and soiled notes
register etc are maintained with full particulars and acknowledgement from the
concerned staff., wherever required
4. chest slips have been prepared accurately, numbered, serially, promptly submitted
to RBI and copies filed serially In a separate file .
5. there are any Instances of delayed reporting / wrong reporting of withdrawals and
payment of penal interest thereon.
6. preparation and submission of Review Returns. is prompt and up-to-date
7. follow up of items under Branch Adjustment Account and Sundry Assets. is
prompt and effective
8. there are any serious irregularities pointed out by RBI officials during
inspection.
9. Casual Leave Register and leave follow up Register are maintained and updated
10. licences and other records relating to guns are maintained as per guidelines,
STAFF MATTERS
1. ACCOUNTS OF STAFF : Check whether -
a) withdrawals are allowed / authenticated by appropriate authorities as per
norms
b) there are any transactions of large amounts, disproportionate to known
sources of income
c) proper control on staff accounts is maintained
d) accounts are scrutinized and certified by the branch in charge
e) advances to close relatives of employees , if any, ( other than those against
Term Deposits ) are sanctioned by appropriate authorities
f) the branch has followed the instructions on transfer of accounts of
transferred employees to transferee Branch
g) the fact of transfer of employees account to which FTVs are debited
informed to Card Division.
MAHESH GARG
(AUDIT EXECUTIVE)
(334 Points)
Replied 22 June 2011
SECURITY ITEMS
Check whether
a) security items received, are inwarded promptly and acknowledgement sent to concerned Section and suppliers.
b) security items are held under dual control and issued against acknowledgement of concerned supervisor.
c) quarterly balancing of security items and monthly balancing of high value items
are certified by both the officials in charge of security items
d) obsolete stock of security items has been destroyed as per guidelines.
( if not destroyed , enclose a list of such items).
e) preservation of cancelled security items and maintenance of records
thereof are as per guidelines(should be serially numbered and filed
separately duly recorded in the register with signatures of officials
concerned); check whether handling of items missing or lost and found subsequently. is as per procedural guidelines
Procedure for destruction during Inspection.
f) the branch has adhered to guidelines on receiving and accounting Security
items and maintenance of records relating to missing security items
g) Security items movement register is maintained
INTEREST COLLECTED, INTEREST PAID & COMMISSION
1) check whether the accounts have been balanced on due dates, tallied and
checked
2) check whether -
a) correct rate of interest has been stipulated / applied ( advances as well as
deposits )
b) processing charges, ledger folio charges, godown inspection charges,
documentation charges have been correctly calculated and collected.
c) commission on DDs / TTs,, Inward / outward cheques, and bills for collection
etc., have been collected as stipulated and deviations / concessions if any
are
backed by sanctions ( test check ).
d) service charges on inoperative SB accounts have been recovered.
e) penal charges on delayed remittance to Recurring Deposit accounts are
collected.
f) necessary adjustments have been made in interest provision / payment
at the time of premature closure of term deposits.
g) Interest provision on Recurring Deposits, term deposits have been correctly
made and checked.
h) Income recognized in case of NPA accounts where recoveries are
effected.
i) Collection flow ID and compound interest flags are set correctly.
3) verify stray credits in the interest collected/commission & debits in the interest
paid subsidiary with corresponding entries under loan, advance and deposit
accounts and record your observations.
4) scrutinise as per norms debits to interest collected/commission subsidiary
with the corresponding credits and record your observations.
5) test check genuineness/correctness of entries passed in respect of excess/short
payment of interest under deposits during previous inspection and record
your observations.
6) scrutinise as per norms instances of overwritings/correct balances cast for
their genuineness (observations to be recorded in the report).
7)* register for noting Income Leakage is maintained
8) the branch has maintained register for entrustment of work relating to
interest calculation, application and checking.
9) register for noting modification / updation of rate of interest / parameters in
the system is maintained and entries therein are authenticated
10) interest provision made for the purpose of balance sheet are promptly
reversed.
11) receipt of Bank assurance commission is ensured and accounted for in the
relevant head.
ABHINANDAN JAIN
(CA Student)
(886 Points)
Replied 01 July 2011
DO U KNOW WHT IS MDA RETURN ...?
pls ans here or give ur reply at link given below:
/forum/concurrent-audit-in-a-bank-152208.asp
kalyan chakravarthy
(Practicing Chartered Accountant)
(24 Points)
Replied 15 July 2011
Thanku Sir, Iam going to do my first concurrent audit
I hope this information will help me to a greater extent
p.rajanikanth
(articles)
(22 Points)
Replied 29 August 2011
sir, what are the areas new student will observe in concurrent audit
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