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Concurrent audit

Mahalaxmi (job seeker) (1203 Points)

29 November 2015

how to check loan and forex of indian bank for concurrent audit purpose?

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3 Replies

sneha (student(C A)) (32 Points)
Replied 02 December 2015

dear mahalaxmi,

pls go through following link for detailed knowledge of forex audit

https://www.wirc-icai.org/(X(1)S(cm5ivg45j3gwqo55bo0aeg2x))/material/Audit-of-Foreign-Exchange-Transactions.pdf

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sneha (student(C A)) (32 Points)
Replied 02 December 2015

now comming to audit of loan, the basic idea behind audit of loans is to verify wether the loan is given to geniune person and the interest of the bank is not at risk.

to start wid there r two types of doc. that needs to be checked, one is permanent doc and the other is annual doc.

permanent doc. are those that needs to be submitted at the time of loan sanctioning. these are borrowers net worth, gurantors net wtrh, ITR OF both gurantor and borrower, sanction letter, DPN, security documents, adequacy of security as per sanction letter, ROC in case of car loan, collateral security, creation of charge with ROC in case of companies.

Another set of documents is annual doc wherein the doc. needs to be submitted on periodical basis. for e.g in case of working capital loan the stock statement needs to be submitted on monthly basis based on which the drawing power is determined for the month. audited financial statements, auditors report, valuation report of immovable property(however valuation report stands valid for 3 years after which it needs to be revalued), stock audit report, inspection report, etc..