Celebrate Freedom and save 20% OFF on CAclubindia Pro Subscription! Use code: FREEDOM20

Checklist for Concurrent Audit in a Bank

ABHINANDAN JAIN (CA Student) (886 Points)

21 June 2011

can anybody provide me the chk list for qtrly concurrent audit report for a bank....?

Reply
Follow
Share

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.

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

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

1 Like

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

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.

1 Like

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

@ MAHESH GARG

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

Upgrade to CAclubindia Pro. Subscribe Now!

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

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

Trending Online Classes

LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)

CA Rohan Sogani

Enroll Now

02 September 2024
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)

CA Rohan Sogani

Enroll Now

02 September 2024
5 days Certification Course on GST Practical Return Filing Process

CA Pratibha Goyal

Enroll Now

27 August 2024

Checklist for Concurrent Audit in a Bank

7 Replies

Online classes for CA CS CMA. Professional courses for GST, Tally, Others & Books

Leave a reply

Recent Topics

Related Threads

Popular Discussion

Trending Online Classes

Subscribe to the latest topics :

Search Forum: