What Is Bank Audit Process In India?
Auditing is the process of verify accounts, documents and transactions to ensure correctness and legality. Auditing is conducted by internal or external agencies members called auditor. Procedure Involved In Bank Auditing In Bank Auditing, the bank auditors take the responsibility of reviewing the banks and other financial works. The main responsibility of the bank auditors is that they should focus more on completeness, accuracy in all the financial activities. Classification Of Bank Audit
1) Concurrent Audit
2) Information system Audit / Internal Audit 3) Statutory Audit Concurrent Audit Concurrent Audit is defined as that examination of transactions happening and when it happens. It is continuous work conducted by external auditor on monthly basic. Daily based transaction also examined in concurrent auditing. For banks, they are more number of daily transaction, documentation and formality have to examine and maintain in daily manner. Through concurrent audit we can easily find irregularities or non conformities. It helps to avoid piling up of irregularities which will become huge problem at year end auditing. Concurrent auditor check the transaction, KYC norm compliance, checking new loan documents, income leakage and regulation in daily manner. Concurrent auditing helps the branch to rectify problems and work smoothly. Information system Audit / Internal Audit Many organizations has internal audit along with concurrent audit. Internal audit is auditing the records in daily or monthly manner from its own organization. The internal auditor analyzes the record and visits those branches regularly and maintains the report of when the auditing carryout. Internal auditing is focused for the specific area branches or cover every branches it’s depends on the auditing program. Mostly Auditing is conducted by the bank itself. In the digitalized banking sector-ATM, core banking, mobile banking, internet banking, it is necessity to have periodic report of “how the system working”. Statutory Audit For banking sector, it is mandatory to maintain Statutory Audit. These auditing is conducted by Statutory Auditor. This auditing is conducting at the very last day of march or starting of April for all branches of all bank. External Audit This auditing is directly under control of RBI (Reserve Bank Of India). And statutory auditor is appointed by RBI in association with ICAI. By this record, RBI has maintaining Indian Bank Details every year. In statutory audit, they won’t look at nitty-gritties banking transaction. They rely on the test checking form and concurrent report. The bank auditing is very much important for process which is undertaken by internal and external auditor.
0 Comments
Leave a Reply. |
Archives |