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internal audit

ramprasad (Chartered Accountant) (424 Points)

24 November 2007

what are the matters of audit importance in case of internal audit of stock broking firm.

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(Guest)

I am exactly loking for areas to be covered for the internal audit of a stock broker, the guidelines and circulars , notifications of SEBI and other applicable authorities. So if any one of you have a specimen copy of the internal audit of A STOCK BROKER, kindly mail me at adi.jain @ yahoo.com. Thanks in anticipation.

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KAAPIL (COACHING ) (11717 Points)
Replied 24 November 2007

Check Demat Account, Registration, Movement of shares from common pool to client. It has to be done within 48 hours. Also see the movement of funds. Check the clients credentials in case of material transactions. Also keep in mind the related parties within client and brokers.

Aditya (Article) (33 Points)
Replied 25 November 2007

check compliance with SEBI (Stock Broker and Sub Brokers) Regulations, 1992 That will serve the purpose . there are a lot of provisions contained in that regulations. esp rule 17

(Guest)

Hi aditya,

If u have got any replies towards what are the areas wherein audit can be conducted for a stock broker, kindly share it with me at "gaurav82jalan @ gmail.com'

Thanks in advance.

Annamalai (Student) (23 Points)
Replied 22 September 2008

Key Matters to be covered in the internal Audit report of Memebers of stock Exchange are as follows :- KYC Norms - Proofs,Date of trading, bank a/c compliance etc Margin with NSE wit turnover of the Member(ie Buy + Sell) are within the limts Whether the Securities in the Cash market are deliverd out of pool a/c on time(ie 24 hrs) Whether the member has kept in abeyance the delivery of stocks to his client (ie movement to ben/ac due to debit balance in the particular settlment) Derivatives Market :- margin as stipulated by exhange is availabe with the client as at the end of the day (note : this is a very funny rule because by the end of the day the exchange requires a particular amount of credit in the clients a/c whereas the client gives a cheque whcih clears only on the next day. Most importantly on OWN trading transactions and Positions (ie cash and derivatives market) whether the funds and securities and kept seperately and not mixed with the clients a/c. Service tax - on own trading transactions - reasonable value. Please let me know if theres anything else you want to know.. would be glad to help you. Reach me at spannamalai7 @ gmail.com

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(Guest)

Originally posted by :Guest
"	I am exactly loking for areas to be covered for the internal audit of a stock broker, the guidelines and circulars , notifications of SEBI and other applicable authorities. So if any one of you have a specimen copy of the internal audit of A STOCK BROKER, kindly mail me at adi.jain @ yahoo.com. Thanks in anticipation.	"

(Guest)

Originally posted by :Guest
"	I am exactly loking for areas to be covered for the internal audit of a stock broker, the guidelines and circulars , notifications of SEBI and other applicable authorities. So if any one of you have a specimen copy of the internal audit of A STOCK BROKER, kindly mail me at sharad_thanvi001 @ yahoo.co.in Thanks in anticipation.	"

(Guest)

Originally posted by :Guest
"	Main feature to be covered in internal audit of a share broker is compliance with SEBI and the exchanges. This includes checking of KYC, Agreement with clients/Sub Brokers , Third Party Deliveries/ Payments and receipts, Service tax payments and inputs, Stamping of KYC and payments of Stamp Duty, Delivry auctions, Close-outs, Sharing of brokerage, Limits to clients etc. There are many more specific areas depending upon the working arena of the broker.	"