bank audit

Scope for IT Audit in Banks as per new guidelines of RBI

Fema / RBI - A good governance framework and effective risk and compliance culture should be complemented by a robust assurance mechanism by way of internal audit function. This is an integral part of sound corporate governance, which should provide an independent assurance to the Board of the bank as well as to external stakeholders that the operatio...

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Checklist for Statutory Audit of Bank Branch Audit (An Overview)

Fema / RBI - 1. General – Area of Review Pre Audit a) Review of Latest available inspection reports of Internal/Concurrent/RBI/Statutory Auditors and compliance thereof. b) Review of Closing Circular issued by Head Office c) Study of Significant accounting policies of the Bank & computer system d) Study of Business mix of the Branch & determ...

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Remote Bank Audit: A Valuable Tool During Pandemic

Fema / RBI - What is Remote Auditing??? The remote audit also may be referred to as E Auditing is exactly same as an audit but in involves use of electronic means to collect Audit Evidence. Remote Auditing techniques involve sharing files via email, Google drive etc., providing documents by sharing its desktop screen or via video conferencing using [&...

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Revised FAQs on UDIN for Statutory Bank / Tax Audit | LFAR | Certificates

Fema / RBI - Q.1 While conducting Bank Audit, whether separate UDINs are required to be generated for LFAR, Tax Audit, Statutory Audit Report etc.? Ans: No, since UDIN has to be generated per Assignment per Signatory on a given date, so one UDIN will suffice for the Bank Audit Report including LFAR and Certificates. However, separate UDIN will [&helli...

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Recent reliefs in Bank Branch Audit due to COVID-19

Fema / RBI - 1. What reliefs are being provided by Reserve Bank of India (RBI) for easing out bank branch audit during these times of coronavirus? The Reserve Bank of India has brought 3 major circulars in form of COVID-19 regulatory package. i) COVID 19 Regulatory package- (RBI circular dated 27.03.2020)- This circular relates to relaxation in repaym...

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Advisory for Statutory Bank Branch Auditors

Fema / RBI - Specific Considerations while conducting Distance Audit / Remote Audit / Online Audit of Bank Branch under current Covid-19 situation Dear Professional Colleagues, We hope this communique will find you safe and healthy. We are sure that by now most of us must have received appointment letters for statutory bank branch audits indicating br...

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Addendum to Guidance Note on Audit of Banks, 2020 Edition

Fema / RBI - Addendum to the Guidance Note on Audit of Banks, 2020 Edition with reference to RBI circular no.: RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020 on COVID 19 – Regulatory Package The RBI issued a circular dated March 27, 2020 granting relief for borrowers as Covid-19 Regulatory package. The relief granted to b...

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ICAI advisory for initiating Statutory Bank Branch audit remotely

Fema / RBI - Advisory issued by ICAI to approximately 35,000 firms eligible for Bank Branch Audit for initiating the process of Statutory Bank Branch audit remotely to ensure timely and effective Bank Branch Audit. The said advisory was also shared with all Central Statutory Auditors for their information. Advisory issued to approximately 35,000 firms...

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Necessity of Statutory Branch Audit in Public Sector Banks

Fema / RBI - It has come to the notice of Professional Development (PD) Committee of Institute of  Chartered Accountants of India (ICAI) that one of the public sector banks (PSBs) has  requested that Indian Banks’ Association (IBA) to consider the representation on  exemption from statutory bank branch audit, for the year ended March 31, 2020, in...

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Bank Branch Audit of Public Sector Banks for year 2019-20

Fema / RBI - Bank Branch Audit of Public Sector Banks for the year 2019-20 In these tough times of the global spread of pandemic COVID-19, challenges are being faced by one and all. Limited physical movement, restricted access to information and constraints of resources have impacted all the economic processes pervasively. In respect of the bank branc...

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RBI revises Long Form Audit Report (LFAR) after 18 Years

RBI/2020-21/33 Ref.No.DOS.CO.PPG./SEC.01/11.01.005/2020-21 - (05/09/2020) - Keeping in view the large scale changes in the size, complexities, business model and risks in the banking operations, a review of the LFAR formats, in consultation with the stakeholders, including the Institute of Chartered Accountants of India (ICAI), was undertaken and it has been decided to make...

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Statutory Branch Audit of Banks – Guidelines Revised- COVID-19

DOS.ARG.No.6605 /08.91.001/2019-20 - (27/04/2020) - In view of the difficulties expressed by certain banks in the matter of conducting Statutory Branch Audit in PSBs on account of lockdown situation prevailing due to the spread of COVID-19 in the country, the matter was examined by RBI....

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COVID19 Regulatory Package – Resolution of Stressed Assets

RBI/2019-20/219 DOR.No.BP.BC.62/21.04.048/2019-20 - (17/04/2020) - Reserve Bank of India RBI/2019-20/219 DOR.No.BP.BC.62/21.04.048/2019-20 April 17, 2020 All Scheduled Commercial Banks (excluding Regional Rural Banks); All India Financial Institutions (NABARD, NHB, EXIM Bank, and SIDBI); All Systemically Important Non-Deposit taking Non-Banking Financial Companies ...

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COVID19 Regulatory Package – Asset Classification & Provisioning

RBI/2019-20/220 DOR. No. BP. BC. 63/21.04.048/2019-20 - (17/04/2020) - In respect of all accounts classified as standard as on February 29, 2020, even if overdue, the moratorium period, wherever granted, shall be excluded by the lending institutions from the number of days past-due for the purpose of asset classification under the IRAC norms....

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COVID-19 – RBI Regulatory Package

RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-20 - (27/03/2020) - The rescheduling of payments, including interest, will not qualify as a default for the purposes of supervisory reporting and reporting to Credit Information Companies (CICs) by the lending institutions. CICs shall ensure that the actions taken by lending institutions pursuant to the above announcem...

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Recent Posts in "bank audit"

Scope for IT Audit in Banks as per new guidelines of RBI

A good governance framework and effective risk and compliance culture should be complemented by a robust assurance mechanism by way of internal audit function. This is an integral part of sound corporate governance, which should provide an independent assurance to the Board of the bank as well as to external stakeholders that the operatio...

Read More
Posted Under: Fema / RBI |

RBI revises Long Form Audit Report (LFAR) after 18 Years

RBI/2020-21/33 Ref.No.DOS.CO.PPG./SEC.01/11.01.005/2020-21 (05/09/2020)

Keeping in view the large scale changes in the size, complexities, business model and risks in the banking operations, a review of the LFAR formats, in consultation with the stakeholders, including the Institute of Chartered Accountants of India (ICAI), was undertaken and it has been decided to make the following changes....

Read More

Checklist for Statutory Audit of Bank Branch Audit (An Overview)

1. General – Area of Review Pre Audit a) Review of Latest available inspection reports of Internal/Concurrent/RBI/Statutory Auditors and compliance thereof. b) Review of Closing Circular issued by Head Office c) Study of Significant accounting policies of the Bank & computer system d) Study of Business mix of the Branch & determ...

Read More
Posted Under: Fema / RBI |

Remote Bank Audit: A Valuable Tool During Pandemic

What is Remote Auditing??? The remote audit also may be referred to as E Auditing is exactly same as an audit but in involves use of electronic means to collect Audit Evidence. Remote Auditing techniques involve sharing files via email, Google drive etc., providing documents by sharing its desktop screen or via video conferencing using [&...

Read More
Posted Under: Fema / RBI |

Advisory for Statutory Bank Branch Auditors

Specific Considerations while conducting Distance Audit / Remote Audit / Online Audit of Bank Branch under current Covid-19 situation Dear Professional Colleagues, We hope this communique will find you safe and healthy. We are sure that by now most of us must have received appointment letters for statutory bank branch audits indicating br...

Read More
Posted Under: Fema / RBI |

Addendum to Guidance Note on Audit of Banks, 2020 Edition

Addendum to the Guidance Note on Audit of Banks, 2020 Edition with reference to RBI circular no.: RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020 on COVID 19 – Regulatory Package The RBI issued a circular dated March 27, 2020 granting relief for borrowers as Covid-19 Regulatory package. The relief granted to b...

Read More
Posted Under: Fema / RBI |

Revised FAQs on UDIN for Statutory Bank / Tax Audit | LFAR | Certificates

Q.1 While conducting Bank Audit, whether separate UDINs are required to be generated for LFAR, Tax Audit, Statutory Audit Report etc.? Ans: No, since UDIN has to be generated per Assignment per Signatory on a given date, so one UDIN will suffice for the Bank Audit Report including LFAR and Certificates. However, separate UDIN will [&helli...

Read More
Posted Under: Fema / RBI |

Recent reliefs in Bank Branch Audit due to COVID-19

1. What reliefs are being provided by Reserve Bank of India (RBI) for easing out bank branch audit during these times of coronavirus? The Reserve Bank of India has brought 3 major circulars in form of COVID-19 regulatory package. i) COVID 19 Regulatory package- (RBI circular dated 27.03.2020)- This circular relates to relaxation in repaym...

Read More
Posted Under: Fema / RBI |

Statutory Branch Audit of Banks – Guidelines Revised- COVID-19

DOS.ARG.No.6605 /08.91.001/2019-20 (27/04/2020)

In view of the difficulties expressed by certain banks in the matter of conducting Statutory Branch Audit in PSBs on account of lockdown situation prevailing due to the spread of COVID-19 in the country, the matter was examined by RBI....

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FAQ on Ethics related to Bank Audit Assignments

Q 1. Whether a Firm of Chartered Accountants can accept Audit of a branch of a bank, while one of the partners of the said Bank have taken loan from a different branch of the Bank ? Ans. No, the Firm of Chartered Accountants cannot accept branch Audit of the Bank if one of the partners have taken the loan from any branch of that bank....

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Posted Under: Fema / RBI |

ICAI advisory for initiating Statutory Bank Branch audit remotely

Advisory issued by ICAI to approximately 35,000 firms eligible for Bank Branch Audit for initiating the process of Statutory Bank Branch audit remotely to ensure timely and effective Bank Branch Audit. The said advisory was also shared with all Central Statutory Auditors for their information. Advisory issued to approximately 35,000 firms...

Read More
Posted Under: Fema / RBI |

Necessity of Statutory Branch Audit in Public Sector Banks

It has come to the notice of Professional Development (PD) Committee of Institute of  Chartered Accountants of India (ICAI) that one of the public sector banks (PSBs) has  requested that Indian Banks’ Association (IBA) to consider the representation on  exemption from statutory bank branch audit, for the year ended March 31, 2020, in...

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Posted Under: Fema / RBI |

Restructuring & Relief to MSME borrower’s- Auditor’s perspective

MSME plays an important role in our economy. This sector contributes significantly to the Indian Economy in terms of Gross Domestic Product (GDP), Exports and Employment generation. Understanding its difficulties, RBI from time to time has come out with host of measures to provide relief to this sector. The key important RBI circulars are...

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Posted Under: Fema / RBI |

Bank Branch Audit of Public Sector Banks for year 2019-20

Bank Branch Audit of Public Sector Banks for the year 2019-20 In these tough times of the global spread of pandemic COVID-19, challenges are being faced by one and all. Limited physical movement, restricted access to information and constraints of resources have impacted all the economic processes pervasively. In respect of the bank branc...

Read More
Posted Under: Fema / RBI |

COVID19 Regulatory Package – Resolution of Stressed Assets

RBI/2019-20/219 DOR.No.BP.BC.62/21.04.048/2019-20 (17/04/2020)

Reserve Bank of India RBI/2019-20/219 DOR.No.BP.BC.62/21.04.048/2019-20 April 17, 2020 All Scheduled Commercial Banks (excluding Regional Rural Banks); All India Financial Institutions (NABARD, NHB, EXIM Bank, and SIDBI); All Systemically Important Non-Deposit taking Non-Banking Financial Companies (NBFC-ND-SI) and Deposit taking Non-Bank...

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COVID19 Regulatory Package – Asset Classification & Provisioning

RBI/2019-20/220 DOR. No. BP. BC. 63/21.04.048/2019-20 (17/04/2020)

In respect of all accounts classified as standard as on February 29, 2020, even if overdue, the moratorium period, wherever granted, shall be excluded by the lending institutions from the number of days past-due for the purpose of asset classification under the IRAC norms....

Read More

Due Diligence Reports For Banks

What is Due Diligence: Due diligence is a process of research and analysis that is initiated before an acquisition, investment, business partnership or bank loan, in order to determine the value of the subject of the due diligence or whether there are any major issues involved. Such findings are then summarized in a report which […...

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Posted Under: Fema / RBI |

Identification of NPA in Bank Audit

The Statutory Auditors may consider the following exercise to dig out the hidden accounts which are shown as Standard but are required to be classified as NPAs....

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Posted Under: Fema / RBI |

IBA suggests Bank Branch Statutory Audit from a remote location

Furthermore, Branch Statutory Auditors should conduct the audit operations from a remote location primarily relying on the data available in CBS and they should physically visit the branches only for urgent and unavoidable matters....

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Posted Under: Fema / RBI |

How to commence a Bank Branch Audit

As the financial year is coming to a close, bank branch audit is expected to commence shortly. There may be delays due to the spread of Corona Virus as the SEBI has extended the due date of filing of reports by a month. However, it is important for the auditors to prepare for the audits […]...

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Posted Under: Fema / RBI |

COVID-19 – RBI Regulatory Package

RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-20 (27/03/2020)

The rescheduling of payments, including interest, will not qualify as a default for the purposes of supervisory reporting and reporting to Credit Information Companies (CICs) by the lending institutions. CICs shall ensure that the actions taken by lending institutions pursuant to the above announcements do not adversely impact the credit ...

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Govt withdraws schedule of Statutory Audit of public sector banks

F. No. 7/31/2012 -BOA.I (25/03/2020)

In order to bring promptness and uniformity, it has been decided that after closure of accounts on 31st March of the financial year, the PSBs will follow the following schedule in this regard -...

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Importance of Management of Operational risk in Banks

In the wake of the recent announcement of Reserve Bank of India on the restrictions imposed on the YES BANK regarding cash withdrawal of more than Rs. 50000/- after the recent collapse of Punjab & Maharashtra Co-operative Bank, the management of operational risk has assumed greater importance to prevent such unsavory incidents inconve...

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Posted Under: Fema / RBI |

Download Guidance Note on Audit of Banks

Guidance Note on Audit of Banks 2020 edition As you all are aware that the Bank Statutory Audit season is just around the corner, We take this opportunity to place in your hands, the Guidance Note on Audit of Banks – 2020 edition, issued by the Auditing and Assurance Standards Board of ICAI. Over the […]...

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Posted Under: Fema / RBI |

Summary of Important Circulars for Bank Branch Audit 2019-20

Summary of Important Circulars for Bank Branch Audit (FY 2019-20-PSB/SCB Bank Branch) Brief Background: The Reserve Bank of India (RBI) at frequent interval issues various circulars/notifications/guidelines applicable to all the regulated entities viz. Scheduled Commercial Bank’s (SCB’s), Regional Rural Banks (RRB’s), Non-Banking Fi...

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Posted Under: Fema / RBI |

Exposure Draft Guidance Note on Audit of Banks (2020 Edition)

The Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has today issued the Guidance Note on Audit of Banks 2016 edition. For the benefit of members, complete text of the Guidance Note and the contents of accompanying CD can be downloaded at:...

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Posted Under: Fema / RBI |

RBI revises norms for concurrent audit system of banks

RBI/2019-20/64 DBS.CO.ARS.No.BC.01/08.91.021/2019-20 (18/09/2019)

As you are aware, concurrent audit aims at shortening the interval between a transaction and its independent examination. It is, therefore, integral to the establishment of sound internal accounting functions and effective controls and is regarded as part of a bank's early warning system to ensure timely detection of serious errors and ir...

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Bank Audit: Investment Verification

As so many branch audit are closed, the investment made by the banks are generally done by the head office of the bank, the central auditor required to make its main audit report, however the verification of investments is to be done on the following basis: Classification of Investments: In India In Government securities. Other […]...

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Posted Under: Fema / RBI |

Bank Audit-Issue of Reversal of Unrealised Interest on NPA Accounts

Statutory audits of banks and their branches are under process. Various issues relating to these audits are under discussion amongst the (auditors ) Chartered Accountants . One of such issues in bank branch audit is regarding reversal of unrealized interest on loans / advances  which have became NPA in the year under audit. In this artic...

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Posted Under: Fema / RBI |

Bank Audit from GST Angle

Bank auditing is the procedure of reviewing the services and procedures adopted by banks and other financial institutions. It is a routine procedure that all financial services entities must undergo in order to ensure that they are in compliance with industry standards and jurisdictional regulations. In this Presentation let’s Discu...

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Posted Under: Fema / RBI |

Bank Audit Check List & Procedure (Concurrent Audit)

Concurrent audit means doing the examination of the financial transactions at the time of happening or parallel with the transaction. It is part of a bank’s early warning system to ensure timely detection of irregularities and lapses. It helps in preventing fraudulent transactions at branches. here the check list and procedure, I ho...

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Posted Under: Fema / RBI |

Guidance Note on Audit of Banks (2019 Edition)

Your comments on this Exposure Draft -Guidance Note on Audit of Banks (2018 Edition) should reach us by January 13, 2018. Comments are most helpful if they indicate the specific paragraph(s) to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording. The comments should be sent to:...

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Posted Under: Fema / RBI |

ICAI issues 3 Exposure Drafts of Guidance Note on Audit of Banks 2019

ICAI has issued 3 Exposure Draft of the Guidance Note on Audit of Banks 2019 which includes Guidance on  Statutory Central Audit of Banks, Guidance on Foreign Exchange Transactions and Integrated Treasury and Guidance on Bank Branch Audit other than Foreign Exchange Transactions. Exposure Draft of the Guidance Note on Audit of Banks 201...

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Posted Under: Fema / RBI |

RBI Enforcement action framework in respect of statutory auditors of banks

Press Release: 2017-2018/3425 (29/06/2018)

In the interest of improving audit quality and with a view to instituting a transparent mechanism to examine accountability of SAs in a consistent manner, it has been decided to put in place a graded enforcement action framework to enable appropriate action by the RBI in respect of the banks’ SAs for any lapses observed in conducting a ...

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Draft ICSI Guidance on Diligence Report on Governance for Banks

ICSI has come up with Exposure Draft of ICSI Guidance on Diligence Report on Governance for Banks. The Draft was released at the golden Jubilee Year National Conference of Practicing Company Secretaries (19th Edition) held at The LaLiT, Mumbai during May 18-19, 2018....

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Posted Under: Fema / RBI |

Bank Audit Manual 2017-18 with Working Formats

Contents of Bank Audit Manual 2017-18 1. Key Points 2. Asset Classification & Provisioning – a ready reckoner 3. Income Recognition & Asset Classification Norms - at a Glance 4. Important Points 5. Asset Classification – at a Glance 6. Important Audit Checks 7. Draft Management Representation Letter...

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Posted Under: Fema / RBI |

Revised Formats of Statutory Auditor’s Report for Urban Cooperative Banks

ICAI is issuing the following revised formats of the statutory auditor’s report for urban cooperative banks (UCBs). These formats have been developed by the Board in consultation with the RBI and the same have also been accepted by the RBI....

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Posted Under: Fema / RBI |

ICAI Constitute Group related to all issues of Bank Audit

The President, in terms of the authority given to him by the Council at its 363rd meeting held on 12th February, 2017, has constituted a Group related to all issues of Bank Audit including reduction in Statutory Central Auditors (SCAs), cooling period, distribution of bank branch audit as well as previous report of CA. Tarun J. Ghia on ...

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Posted Under: Fema / RBI |

Bank Revenue Audit tip on Penal Interest

In CBS environment , most of the times , Management response is usually as All charges calculation and charging is done by system , there's no chance of under recovery....

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Posted Under: Fema / RBI |

HDFC clarification on Charges for Cash Withdrawals

HDFC BANK IMPORTANT NOTICE REVISION OF FEES AND CHARGES – SAVINGS & SALARY ACCOUNTS (EFFECTIVE 01st March 2017) Effective 01st March 2017, cash transaction charges for Savings and Salary accounts are being revised as follows: Sr. No Charge Type Revised charges 1 Number of Cash transactions(Cumulative of Deposit and Withdrawal) 4...

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Posted Under: Fema / RBI |

Audit Firms approved for Central Statutory Audit in 25 PSBs for 2016-17

Names of Audit Firms approved for appointment as Statutory Central Auditors in 25 Public Sector Banks for the year 2016-17 Sr No Auditors appointed for 2016-17 1. Allahabad Bank, Kolkata 1 M/s N C Banerjee & Co., Kolkata 2 M/s Kansal Singla & Associates, Chandigarh 3 M/s Raju & Prasad, Hyderabad 4 M/s De & […]...

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Posted Under: Fema / RBI |

Top Five Areas of Concern after Demonetization in Bank Concurrent Audits

One of the community most affected by demonetization after common men and bankers would be bank auditors. Most of the auditors are dwelling in confusion after so many notifications of government of India and RBI. ...

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Posted Under: Fema / RBI |

How to do Concurrent Audit of a Bank- 3Qs & 3Cs

Most of the young chartered Accountants always dwell in the Question How to do concurrent Audit of a Bank. There are many reasons of this anxiety they possess for concurrent audits, Such as Lack of experience, Lack of opportunities, Lack of confidence etc....

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Posted Under: Fema / RBI | ,

Transparency required in allotment of PSU & Bank Audit

Arbitrary criteria exist for the allotment of audit of public sector units. Every department made their own different rules and conditions for appointment though there is existence of ICAI Multipurpose empanelment form (MEF). There is something which is hidden and not transparent....

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Posted Under: Fema / RBI |

Cost Accountant Firms panel creation for Stock / Concurrent Audit

Creation of a panel of Cost Accountant Firms for sending to RBI for its consideration for Stock / Concurrent Audit in the banks. A panel consisting of list of eligible Cost Accountant Firms would be formed and sent to RBI so that they may examine and consider the same for recognizing them for audit work in banks in India....

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Posted Under: Fema / RBI |

Reference Material on Bank Branch Audit for Financial Year 2009-2010

Download Reference Material on Bank Branch Audit (2009-2010)...

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Posted Under: Fema / RBI |

Govt asked UBI to get all its branches audited for high-value transactions

Taking a serious note of Union Bank of India (UBI) not reporting high-value transactions to it, the government has asked the state-owned bank to immediately carry out an audit of all its branches to check for such large deposits that have gone unreported.The Income Tax department, during a probe into alleged money laundering by former Jha...

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Posted Under: Fema / RBI |

Madhu Koda associate deposited 640 crore cash in one branch of Mumbai bank

This seems to be the biggest slip by an Indian financial institution which is supposed to maintain heightened vigilance on suspicious and high-value cash transactions. At least Rs 640 crore was deposited in cash by one of the alleged front companies of former Jharkhand CM Madhu Koda in a state-owned bank in Mumbai. The bank failed to trig...

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Posted Under: Fema / RBI |

Bank Audit Empanelment by ICAI for 2008-09

ICAI – Announcement Announcement reagrding MEF for the year 2008-09 *Multipurpose Empanelment Application Form for the year 2008-09* Multipurpose Empanelment Application Form for the year 2008-09 is expected to be hosted on 15th June, 2008. *Everyone is advised to check their last year’s data and fill in all the blank columns ...

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Posted Under: Fema / RBI |

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