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Bank and financial audits
Banks rely on independent Chartered Accountants to confirm that branch accounts are accurate, that lending follows the rules, and that every rupee of income due is actually earned. We carry out bank audits as required by the regulators and the Reserve Bank of India.
Statutory bank branch audit
The annual audit of a branch's accounts, which feeds into the bank's statutory audit. Our work covers:
- Verification of advances and the classification of non-performing assets under RBI prudential norms
- Review of deposits, income, expenditure and balance sheet items
- Long Form Audit Report (LFAR) and related certificates
- Reporting on compliance with RBI and bank-specific instructions
Concurrent audit
A continuous, near real-time review of transactions at a branch or department, carried out in line with the bank's concurrent audit policy. It catches errors and irregularities while they can still be corrected. Typical areas include:
- Credit sanction, documentation and disbursement
- Verification of interest on loans
- KYC and anti-money laundering compliance
- Deposits, remittances and cash transactions
- Treasury and investment operations, where applicable
Stock audit
An independent check, on behalf of the bank, of the inventory and receivables a borrower has pledged or hypothecated as security. It confirms that the bank's lending is properly covered. We cover:
- Physical verification of stock and its condition
- Valuation of stock and ageing of receivables
- Review of stock statements and calculation of drawing power
- Reporting on discrepancies and risks to the bank
Revenue audit
A focused review of whether a branch has charged and collected all the interest, fees and charges due to the bank. It identifies revenue leakage and helps the bank recover it. We review:
- Interest applied on loans and advances
- Service charges, commissions and fees
- Penal interest and other charges
- Reversals and waivers, and whether they were authorised
Get in touch
Speak to a Chartered Accountant
Our office is at Conran Smith Road, Gopalapuram, Chennai 600 086. Call us, message us on WhatsApp, or send an enquiry and we will respond.