The document discusses various concerns raised by the Reserve Bank of India (RBI) regarding audit reports and statutory auditors.
[1] RBI expects greater scrutiny from auditors in assessing asset classification and identification of non-performing assets (NPAs), especially for large loan accounts. It also requires auditors to report any suspicious or fraudulent activities uncovered during audits.
[2] RBI has noted non-compliance with certain auditing standards on external confirmations and audit sampling. It is also examining methods like accessing auditors' working papers to better review their work.
[3] The number and value of reported bank frauds have been rising each year from 2013-14 to 2017-18
This presentation would be helpful if you are seeking information regarding Statutory Bank Branch Audit under Banking Regulations Act, India.
This presentation was delivered by me at Institute of Chartered Accountants of India's program in our town during April 2014.
This presentation would be helpful if you are seeking information regarding Statutory Bank Branch Audit under Banking Regulations Act, India.
This presentation was delivered by me at Institute of Chartered Accountants of India's program in our town during April 2014.
Audit of Internal Financial Control over Financial Reporting (IFCR) A complet...Taufir Alam
Introduction to the Presentation on internal financial control over financial reporting_a complete guide
The Companies Act, 2013 has introduced some new requirements relating to audits and reporting by the statutory auditors of companies.
One of these requirements is given under Section 143(3)(i) of the Act which requires the statutory auditor to state in his audit report whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
The section has cast onerous responsibilities on the statutory auditors because reporting on internal financial controls is not covered under the Standards on Auditing issued by the ICAI.
Since the concept of reporting on internal financial controls is still new in India this new reporting requirement has thrown up many challenges for the members.
To help the members properly understand and perform the various aspects of this reporting responsibility, the Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has brought out this Guidance Note on Audit of Internal Financial Controls Over Financial Reporting.
The Guidance Note covers aspects such as Scope of reporting on internal financial controls under Companies Act 2013, essential components of internal controls, Technical guidance on the audit of Internal Financial Controls, Implementation guidance on the audit of Internal Financial Controls.
I have presented the above guidance note into a presentation that will have a complete guide for those who are planning to go for Audit of Internal financial control over financial reporting. this presentation will cover all the relevant aspects and also provide the standard operation process for the efficient conduct of the IFCR Audit. You don't need to read the complete Guidance note.
Large Bank Borrowers - Are they willful defaultersNeha Sharma
The RBI advisory for mandatory provisions of Non-Performing Assets and inclusion of most of the top borrowers in the list of 150 groups covering lakhs of crores of borrowings has brought to surface a very major issue.
Auditors in Dubai play a constructive role in society by delivering added value to clients and critical insights to enhance the performance of the company.
This article tells you about how the Audit to Enterprises of all sizes is an important aspect.
With essential features of auditor like independence,
professional skepticism, documentation skills, and continuous knowledge up-gradation any
Chartered Accountant can make a name for himself in the field of the Audit profession.
The Reserve Bank of India had recently directed to Public Sector Banks as well as Private Sector Banks to downgrade the asset classification of more than 150 borrower accounts, based upon Asset Quality review, to Non- Performing Assets (NPAs). The exposure of banking sector to such borrower accounts was in the range of ` 1,50,000 Crores to ` 2,00,000 Crores.
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Audit of Internal Financial Control over Financial Reporting (IFCR) A complet...Taufir Alam
Introduction to the Presentation on internal financial control over financial reporting_a complete guide
The Companies Act, 2013 has introduced some new requirements relating to audits and reporting by the statutory auditors of companies.
One of these requirements is given under Section 143(3)(i) of the Act which requires the statutory auditor to state in his audit report whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
The section has cast onerous responsibilities on the statutory auditors because reporting on internal financial controls is not covered under the Standards on Auditing issued by the ICAI.
Since the concept of reporting on internal financial controls is still new in India this new reporting requirement has thrown up many challenges for the members.
To help the members properly understand and perform the various aspects of this reporting responsibility, the Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has brought out this Guidance Note on Audit of Internal Financial Controls Over Financial Reporting.
The Guidance Note covers aspects such as Scope of reporting on internal financial controls under Companies Act 2013, essential components of internal controls, Technical guidance on the audit of Internal Financial Controls, Implementation guidance on the audit of Internal Financial Controls.
I have presented the above guidance note into a presentation that will have a complete guide for those who are planning to go for Audit of Internal financial control over financial reporting. this presentation will cover all the relevant aspects and also provide the standard operation process for the efficient conduct of the IFCR Audit. You don't need to read the complete Guidance note.
Large Bank Borrowers - Are they willful defaultersNeha Sharma
The RBI advisory for mandatory provisions of Non-Performing Assets and inclusion of most of the top borrowers in the list of 150 groups covering lakhs of crores of borrowings has brought to surface a very major issue.
Auditors in Dubai play a constructive role in society by delivering added value to clients and critical insights to enhance the performance of the company.
This article tells you about how the Audit to Enterprises of all sizes is an important aspect.
With essential features of auditor like independence,
professional skepticism, documentation skills, and continuous knowledge up-gradation any
Chartered Accountant can make a name for himself in the field of the Audit profession.
The Reserve Bank of India had recently directed to Public Sector Banks as well as Private Sector Banks to downgrade the asset classification of more than 150 borrower accounts, based upon Asset Quality review, to Non- Performing Assets (NPAs). The exposure of banking sector to such borrower accounts was in the range of ` 1,50,000 Crores to ` 2,00,000 Crores.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
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Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
The key differences between the MDR and IVDR in the EUAllensmith572606
In the European Union (EU), two significant regulations have been introduced to enhance the safety and effectiveness of medical devices – the In Vitro Diagnostic Regulation (IVDR) and the Medical Device Regulation (MDR).
https://mavenprofserv.com/comparison-and-highlighting-of-the-key-differences-between-the-mdr-and-ivdr-in-the-eu/
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
2. RBI CONCERNS THAT NEED TO BE
ADDRESSED
Role of Statutory Auditors in Identification of Non-
Performing Assets (NPAs)
Expectations from Statutory Auditors to display a greater
degree of skepticism and independence in assessing
asset classification, especially large-value accounts
Certification and reporting of fraud or suspicious
activity
In terms of extant RBI guidelines, auditors are required
to report any suspicious/fraudulent activities, which
comes to their attention during audit
3. RBI CONCERNS CONTD…
1. Non Compliance of SA 505 External
Confirmations in respect of not receiving
confirmation requests directly by the audit firm.
2. Non compliance of SA 530 Audit Sampling in
respect of not clearly documenting application
of sampling procedures.
4. RBI CONCERNS CONTD…
Audit Working Papers – Preparation and
maintenance
i. IMF-World Bank recommendation to RBI on RBI
having explicit authority to access working papers
of auditors
ii. RBI is examining multiple methods to review the
work of auditors, including having access to
working papers
5. OVERVIEW OF AUDIT STANDARD
FRAMEWORK
I. Standard on Quality Control (SQC)
II. Standards on Auditing
III. Standards on Review engagements (SREs)
IV. Assurance Engagements Other Than Audits or Reviews
of Historical Financial Information (SAEs)
V. Standards on Related Services (SRS)
VI. Guidance notes (GN)
6. SUMMARY STATISTICS - FRAUDS (OF RS 1 LAKH AND
ABOVE) REPORTED DURING THE LAST 5 FYS
Year
All banks
No. of
Frauds
Amount
Involved (Rs. in
Crore)
2013-14 4306 10170.8
2014-15 4639 19455.1
2015-16 4693 18698.8
2016-17 5076 23933.8
2017-18 5916 41167.0
7. FRAUD CONCERNS BY REGULATOR
Delayed Recognition and Reporting of
Frauds
Advances related frauds often seasoned for 3 to 4
years as NPAs
Time between first bank and last bank in consortium
reporting fraud
Ideally within six months from date first entity
reports the account as fraud
Complicity of bank officials and third parties with the
borrower
Reluctance to conduct the meeting of the lenders
Not referring to CRILC
8. FRAUD CONCERNS BY REGULATOR
Delay in filing complaint with CBI/Police
Very poor credit and fraud risk governance
Professional Service Providers
• Advocates, chartered accountants, valuers,
independent engineers
• Reporting and dissemination of names of such third
party professionals by IBA
(RBI had advised IBA to put in place an
enhanced web-enabled TPEs-reporting and
disseminating system. IBA has implemented
the same w.e.f. December 1, 2018).
9. SOME EARLY WARNING SIGNALS
(EWS) (MAY 7, 2015)
• Critical issues highlighted in the stock audit report
• Poor disclosure of materially adverse information
• Frequent change in the scope of the project
• Liabilities appearing in ROC search report, not in
annual report
• Not routing sales through consortium member bank
• LCs issued for related parties without underlying
trade transaction
• Raid by Income tax /sales tax/ central excise duty
officials
• Significant reduction in the stake of promoters or
pledging of shares
11. EXPECTATIONS FROM STATUTORY
AUDITORS
➢Reviewing bank’s response/actions taken to the
advisories/alerts/circulars will suffice
➢Review of the org structure for assuring the implementation of
controls or measures suggested as part of circular/adv/alerts
➢Reviewing third party assurance report
➢Reviewing the notes put up to Information Security
Committee, ITSC on major issues – committee minutes and
actions
➢Reviewing the Role of CISO circular
➢Review of the steps taken for assuring that controls gaps -
identified, critical or reoccurring gaps are reported to
appropriate top committees and controls are sustained
Comments from SA are not expected on conduct of
intrusive assessment of bank’s system, but based on the
records submitted by the bank – CISO, Internal Audit,
External audits (like VA/PT)
12. EXPECTATIONS FROM STATUTORY AUDITORS
CONT.….
List of circulars and advisories issued by RBI (CSITE Cell, DBS) to
banks to be referred for comments on the compliance including
outstanding observations
Review whether bank has conducted audit of Third party
vendors (Outsourcing) – If not comment; If yes – review the
compliance level to the observations made
Review the Role of CISO circular and its compliance – like
whether CISO is reporting to ED in charge of risk management,
whether he is reporting to Board/Board level committee on
quarterly basis; etc.
Check for the incidents reported by the bank to RBI (CSITE
Cell) and its status of closure at their end – reporting to
customers, regulator, RCA, Forensics etc..
13. RBI GUIDELINES ON CYBER SECURITY
➢Basic Cyber Security Framework for Primary (Urban) Cooperative Banks
(UCBs)- Dated October 19, 2018
- Basic security controls recommended over 13 domains.
➢Comprehensive Cyber Security Framework for Primary (Urban) Cooperative
Banks (UCBs) – A Graded Approach- Dated December 31, 2019
- In addition to basic controls mentioned in above guideline, RBI has
formulated cyber security framework on graded approach.
- Th UCBs have been categorized into four levels based on their digital
depth and interconnectedness to the payment system landscape.
15. APPOINTMENT OF AUDITOR –
ARTICLE 243 ZM OF CONSTITUTION
SECTION 75 (2 A)
❖ Every society shall appoint an auditor or auditing
firm from panel approved by State Government in its
Annual General Body meeting.
❖ Society shall file in form of return to the Registrar
the name of auditor & his written consent within 30
days from the date of Annual General Meeting.
❖ Same auditor shall not be appointed for more than
3 consecutive years.
16. SECTION 81
❖ Audit shall be completed within 4 months
from close of financial year.
❖ If society has not appointed auditor and
failed to file return under sub section (2 A) of 75
or sub section (1 B) of section 79, Registrar shall
appoint auditor from panel.
❖ No auditor shall accept audit of more than
20 societies excluding societies having paid up
capital of less than Rs.1 lakh.
17. ARTICLE 243 ZM OF CONSTITUTION
❖ Registrar shall submit audit report of every
Apex society to State Government for being laid
before both houses of State Legislature.
❖ Audit report shall have
✓ All particulars of defects or irregularities.
✓ In case of financial irregularities & misappropriation
or fraud, auditor shall investigate & report modus
operandi, entrustment & amount involved.
18. Rule 69 (3) :- Auditor shall submit audit memorandum
in case of banks in form N1 and in case of other
societies in form N2.
Rule 69 (3) :- Auditor shall state whether accounting
policies adopted by societies are consistent with
Accounting Standards laid down by State
Government or ICAI.
Rule 69 (3) :- While certifying Profit and Loss account,
auditor shall quantify effect of shortfall in various
provisions like NPA, OIR, Depreciation etc. over
profit or loss and state clearly that after considering
effect of all provisions, whether there is profit or
loss.
19. Government of Maharashtra has issued
notification regarding AS.
According to notification, Accounting Standards
as issued by the Institute of Chartered
Accountant of India, New Delhi will be applicable
to Co-operative Societies.
20. BANKS
Various reports required to be issued
Main Audit report as per ICAI
Report in standard format for all branches
L F A R
Audit memo in form 1 & form 7
One-page Proforma
Rating
21. ISSUES OF AUDIT RAISED BY RBI
Fraud provision on full amount &
not net of security
Early mortality reasons & analysis
Recovery accounting to be followed
consistently/ as per policy
Caution for write off in SS accounts
Legal charges on NPA to be debited
to P & L not Borrower