Summary: The Bank Branch Audit 2024-25 focuses on critical financial and regulatory compliance areas. Auditors must review statutory reports, including last year’s audit reports, LFAR, tax audits, and compliance updates. Concurrent and internal audit reports, along with past LFAR observations, should be examined. The credit review includes verifying loan documentation, title deeds, stock statements, insurance policies, and due diligence reports. Deposit account compliance, including KYC, PMLA, and interest rate verification, is essential. Expenses payable, suspense accounts, and security deposits must be checked for accuracy. Physical verification activities, such as cash verification, ATM balances, and security holdings, should be conducted. Auditors must reconcile accounts with the RBI and other banks, review NPA classifications, and assess stress accounts. Compliance with RBI circulars, restructuring of advances, and documentation of large borrower loans must be ensured. Other key areas include verifying the branch’s fixed asset register, rent agreements, significant transactions, and cyber fraud impacts. The audit ensures that financial statements, regulatory guidelines, and operational controls align with the bank’s internal policies and external regulations.
Branch Bank Audit 2024-2025
The list to cover Key Areas must Including SA”, Standards, EWS, Accounting IFC, loan balancing files, recent cyber fraud Impacts, Verify all sachems Interest rates in systems master, NPA RBI circulars and guidelines , Compliances align with HO Circulars etc.
1. Last year Statutory Audit reports (FY 2023-24) along with all annexure, certificates, Tax Audit Report and LFAR along with compliance report thereof
2. Concurrent audit reports along with compliance
3. Internal audit reports along with compliance
4. Observations raised in last year LFAR along with compliance.
5. “Advances – credit review and documentation audit
(a) loan documentation files including sanction letters, credit appraisal note, title deeds, etc
(b) stock statements, stock audit report, due diligence certificate, physical visit report, insurance policy, annual review details, external rating, perfection of securities, legal audit, QIS, audited FS, CMA appraisal, etc
6. “Deposits account opening forms, KYC , PMLA ,rates ,calculations
7. “Expenses Payable (Suspense Payable – Closing Adjustments)
Break up in following major heads:
Rent, Electricity Charges, Concurrent Audit fee, Water Charges, staff expenses, Subscription to periodicals, Telephone/Telex Charges, Coolie Charges, Reimbursement of Petrol/diesel charges, TA to Inspecting Staff, Concurrent audit/revenue audit fee (by outside auditors)”
Break up of Pre-paid Expenses (Suspense Receivable – Closing Adjustments)
“Break up of Account Receivable Account
“Copy of balancing schedule for following heads
Security Deposit on rent
Security Deposit on power, telephone, telex, lease line etc. Advance rent on premises”
8. Fixed Asset register
- Certified copy of Branch Asset Wise Report”
9. Rent (premises) Agreement of the branch
10. Details of any significant / non-routine / one time income or expenses incurred during the quarter
- Tax Audit Annexure
- LFAR Annexure
- Statement of Frauds- a copy to be sent to Zonal office
- Details of Non Banking assets hold by the Branch, if any
- Reconciliation of Accounts and Certificate of Balance with other banks.
- Certificate of holding of Securities & Money Market Instruments
“Physical Verification activities
a) verification of Title Deeds of loans/ securities charged
b) Cash Verification
c) Fixed Assets are tagged, reconcilled with asset verification report from CAMPS
d) ATM cash verification
e) Currency Chest Cash Verification
f) Gold verification
g) Library books Register of Branch “
11. Closing circulars details from Head Office
- All SMA accounts with NPA list, Standard, sub standards, Doubtful, loss
- RBI inspection reports
- Statement of advances
- Stress account statements SMA 2
12. Debit & Credit submissions in the Borrower advances in the branches
- Document files of large advances
- Security detail of large NPA advances
- Pls ensure that Agriculture advances are classified as per the RBI guidelines
- Accounts restructured/rescheduled/rephrased/ CDR with date of restructuring.
- Accounts under SDR / S4A is invoked.
- Branch wise NPA as at 31st March 2025 & 31st March 2024
- Reconciliation with Reserve Bank of India and/or with other banks.
- List of currency chest with RBI inspection report on currency chest
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