The document is a sample audit report for ICICI Bank summarizing the auditor's responsibilities and opinion on ICICI Bank's financial statements for the year ending March 31, 2014. The 3 sentence summary is:
The auditor is responsible for expressing an opinion on whether ICICI Bank's financial statements present fairly and in accordance with accounting standards. In the auditor's opinion, ICICI Bank's financial statements give a true and fair view of the bank's financial position, performance and cash flows. The financial statements were also prepared in accordance with the Banking Regulation Act and comply with applicable accounting standards.
The document summarizes the key points from the Annual Bank Audit Conference organized by ICAI Madurai Chapter. It discusses definitions of banking and auditing. It outlines considerations for branch audits including regulatory requirements, increasing frauds, and technology changes. It describes the peculiarities of bank audits and auditing standards to be followed. It provides details on audit procedures for deposits, income/expenditure, advances including NPAs, balance sheet, and other areas. It discusses audit reporting and Long Form Audit Report (LFAR) submission.
This document summarizes the key aspects of conducting an audit of a bank. It outlines the stages of a bank audit which include audit planning, evaluation of internal controls, preparing an audit program, and submitting an audit report. It also discusses the different types of audits banks undergo, including statutory audits mandated by regulators. The document emphasizes the auditor's role in ensuring the bank has followed all applicable rules, regulations, and guidelines. It also differentiates between performing and non-performing assets for the purposes of the audit.
Audit working papers are documents prepared or obtained by auditors that provide evidence of the audit work performed. They include information used to plan and conduct the audit, as well as evidence to support the auditor's opinion. Working papers serve several purposes, such as providing evidence of compliance with auditing standards, supporting the conclusions in the audit report, and allowing for review of the audit work. They must be organized, indexed, and signed or initialed by the preparer and reviewer. Working papers are the property of the auditing firm but may be subpoenaed by a court.
This document provides an overview of different types of bank audits conducted in India, including statutory audit, concurrent audit, and RBI audit. It describes the objectives and key areas covered by each type of audit. The statutory audit verifies balance sheet classifications and ensures proper income recognition. Concurrent audit checks daily transactions to fill gaps between statutory audits. RBI audit assesses the bank's financial position, policies/procedures, and ability to repay depositors. The document also lists principal enactments governing bank audits and outlines the stages of an auditing process.
The bank audit process consists of several key steps: 1) pre-commencement work including understanding qualifications, scope, and planning; 2) understanding the business of the specific bank branch, including transactions, computer systems, controls, and risks; 3) creating an overall audit plan and program; and 4) performing audit procedures including substantive testing and analytical procedures to evaluate results and issue a report. The auditor must understand laws and regulations, assess risks, and design an appropriate audit sample to provide sufficient evidence for the audit.
The document discusses the types of audits conducted at banks, including statutory audit, concurrent audit, and RBI audit. It outlines the objectives and key areas reviewed for each type of audit. The statutory audit verifies balance sheet classifications and ensures accurate income recognition. Concurrent audit checks transactions daily to fill gaps between statutory audits, examining revenue, expenses, documentation, and administrative functions. RBI audits assess the overall financial position and management policies to safeguard depositor interests and compliance with regulations. The document also describes the stages of auditing, including acquiring regulatory/industry knowledge, understanding books and records, and obtaining internal reports.
This audit engagement letter outlines the agreement between the audit firm and Sheridan Audio Visual Ltd for the audit of the company's financial statements. The audit firm will conduct the audit in accordance with International Standards on Auditing to obtain reasonable assurance that the financial statements are free of material misstatements. Management is responsible for preparing the financial statements in accordance with International Financial Reporting Standards and for establishing internal controls. The audit firm's fees will be billed as the work progresses.
The document summarizes the key points from the Annual Bank Audit Conference organized by ICAI Madurai Chapter. It discusses definitions of banking and auditing. It outlines considerations for branch audits including regulatory requirements, increasing frauds, and technology changes. It describes the peculiarities of bank audits and auditing standards to be followed. It provides details on audit procedures for deposits, income/expenditure, advances including NPAs, balance sheet, and other areas. It discusses audit reporting and Long Form Audit Report (LFAR) submission.
This document summarizes the key aspects of conducting an audit of a bank. It outlines the stages of a bank audit which include audit planning, evaluation of internal controls, preparing an audit program, and submitting an audit report. It also discusses the different types of audits banks undergo, including statutory audits mandated by regulators. The document emphasizes the auditor's role in ensuring the bank has followed all applicable rules, regulations, and guidelines. It also differentiates between performing and non-performing assets for the purposes of the audit.
Audit working papers are documents prepared or obtained by auditors that provide evidence of the audit work performed. They include information used to plan and conduct the audit, as well as evidence to support the auditor's opinion. Working papers serve several purposes, such as providing evidence of compliance with auditing standards, supporting the conclusions in the audit report, and allowing for review of the audit work. They must be organized, indexed, and signed or initialed by the preparer and reviewer. Working papers are the property of the auditing firm but may be subpoenaed by a court.
This document provides an overview of different types of bank audits conducted in India, including statutory audit, concurrent audit, and RBI audit. It describes the objectives and key areas covered by each type of audit. The statutory audit verifies balance sheet classifications and ensures proper income recognition. Concurrent audit checks daily transactions to fill gaps between statutory audits. RBI audit assesses the bank's financial position, policies/procedures, and ability to repay depositors. The document also lists principal enactments governing bank audits and outlines the stages of an auditing process.
The bank audit process consists of several key steps: 1) pre-commencement work including understanding qualifications, scope, and planning; 2) understanding the business of the specific bank branch, including transactions, computer systems, controls, and risks; 3) creating an overall audit plan and program; and 4) performing audit procedures including substantive testing and analytical procedures to evaluate results and issue a report. The auditor must understand laws and regulations, assess risks, and design an appropriate audit sample to provide sufficient evidence for the audit.
The document discusses the types of audits conducted at banks, including statutory audit, concurrent audit, and RBI audit. It outlines the objectives and key areas reviewed for each type of audit. The statutory audit verifies balance sheet classifications and ensures accurate income recognition. Concurrent audit checks transactions daily to fill gaps between statutory audits, examining revenue, expenses, documentation, and administrative functions. RBI audits assess the overall financial position and management policies to safeguard depositor interests and compliance with regulations. The document also describes the stages of auditing, including acquiring regulatory/industry knowledge, understanding books and records, and obtaining internal reports.
This audit engagement letter outlines the agreement between the audit firm and Sheridan Audio Visual Ltd for the audit of the company's financial statements. The audit firm will conduct the audit in accordance with International Standards on Auditing to obtain reasonable assurance that the financial statements are free of material misstatements. Management is responsible for preparing the financial statements in accordance with International Financial Reporting Standards and for establishing internal controls. The audit firm's fees will be billed as the work progresses.
The document presents an audit report on the true and fair concept in accounting. It defines an audit report as a statement of collected facts that provides clear information to those without full knowledge. An auditor must verify accounts carefully and report whether they accurately present a company's true financial condition according to accounting principles. A true and fair report means accounts follow standards, transactions are properly classified, information is complete, and assets/liabilities are properly valued and reported. The document also distinguishes accounting from auditing and describes types of audit reports.
Basel I, II, and III are agreements that established regulatory standards for bank capital adequacy. Basel I, established in 1988, focused on credit risk and set minimum capital requirements of 8% of risk-weighted assets. Basel II, released in 2004, included three pillars: Pillar I established a revised minimum capital framework; Pillar II covered supervisory review; and Pillar III addressed market discipline through disclosure. It recommended a minimum ratio of total capital to risk-weighted assets of 8% and prescribed the minimum capital adequacy ratio of 9% for India. Basel III, finalized in 2017, strengthened bank capital requirements in response to the 2008 financial crisis.
An internal audit is designed to review what a company is doing in order to identify potential threats to the organization's financial health and profitability and to make suggestions for mitigating the risk associated with those threats.
Auditing ,rights and duties of an auditorfizaibrahim6
This document provides an overview of auditing and corporate reporting. It defines an audit as the independent examination of financial information of any entity to express an opinion. An auditor's role is to carefully check the accuracy of business records and ensure organizations maintain accurate financial statements. The document outlines the key features of an audit including critical review of systems and procedures, testing results and operations, and expressing an opinion. It also details an auditor's powers, rights such as access to books and ability to correct wrong statements, and duties like making a report on accounts and compliance with auditing standards.
The document discusses requirements for bank audits according to the Bank Company Act of 1991 as amended in 2013. It states that auditors must report on the adequacy of internal controls, risks of fraud, and consolidation of subsidiary financials. Auditors must also immediately report any serious violations of law or risks of default to Bangladesh Bank. The document provides details on audit procedures for loans and advances, common mistakes made by banks, mandatory financial statement disclosures, and relevant Bangladesh Bank reporting requirements for banks.
This document discusses the importance of credit monitoring and outlines the key aspects that should be monitored. It defines credit monitoring as tracking the performance of financing facilities from disbursement to repayment. Effective post-sanction monitoring is essential to evaluate asset performance and health over the loan tenure. Key areas that should be monitored include internal and external factors that could impact repayment, utilization of loans, account conduct, financial covenants, and security coverage. Timely identification of issues through monitoring can help prevent delinquency and write-offs.
Asset and Liability Management in Indian BanksAbhishek Anand
This document provides an overview of asset and liability management in Indian banks. It discusses key concepts like risk management, non-performing assets (NPAs), Reserve Bank of India (RBI) guidelines, the Narasimham Committee recommendations, Basel accords, and the ALM process. The key points are:
1) Banks face risks like liquidity risk, interest rate risk, currency risk, and credit risk that must be managed. RBI provides guidelines on liquidity risk management.
2) NPAs are loans that are overdue by 90 days. Banks must classify and make provisions for NPAs.
3) The Narasimham Committee in the 1990s recommended reforms like stronger banks
The document discusses internal controls in auditing, including the objectives, components, and case studies related to internal controls. It describes the control environment, risk assessment, control activities, information and communication, and monitoring as the main components of internal controls. The document also differentiates between substantive tests and tests of controls in auditing.
This document provides an overview of an audit and investigation course. The course aims to equip students with the necessary information to understand auditing and investigation practices. It covers 6 modules, including the audit framework and regulation, audit planning and risk assessment, audit evidence, and forensic investigation topics like fraud and money laundering. The document defines auditing and its objectives, compares it to investigation, and outlines assurance engagements and their key elements. It also discusses professional ethics principles, threats to independence, and auditors' rights, appointment, removal and regulation.
This presentation explains about the meaning as well as various types of audit report which an auditor has present in his books of accounts for the sake of the company's shareholders and various other groups.
This document discusses the challenges of auditing bank branches. It notes that bank audits require special considerations due to risks from large volumes of monetary transactions, the scale of bank operations across many branches and countries, and their extensive IT systems. Effective audit planning is important given time constraints from banks' short reporting windows. Pre-commencement activities for branch auditors include studying previous audit reports, regulations, and the bank's business. The audit program must cover the audit scope, risks, staff assignments, procedures, and timetable while allowing flexibility. Compliance with standards and regulations is also important.
The document discusses audit documentation and working papers. It defines audit documentation as evidence of the auditor's work, including the basis for conclusions and compliance with standards. It notes that audit documentation provides evidence of planning and performance. It also defines internal and external documentation. The document then discusses the purpose and contents of audit working papers, including planning, supervision, and supporting the auditor's opinion. It provides examples of common working paper components and formatting conventions.
Credit monitoring is the ongoing supervision of a loan account to ensure the borrower continues to meet the terms of the loan sanction. It helps maintain asset quality and prevent slippage into NPA status. There are four stages of monitoring - pre-sanction, post-sanction pre-disbursement, during disbursement, and post-disbursement. Regular inspections, financial statement reviews, and verifying end-use of funds are some key monitoring activities. Early warning signs like delays in submission of documents or frequent requests for extensions should trigger corrective actions like discussions with the borrower to resolve issues impacting the business.
This document discusses the audit of accounts receivable. It begins by outlining the key accounts, classes of transactions, business functions, and documents related to the revenue and receipts cycle. It then describes major internal controls such as separation of duties, authorization procedures, documentation standards, and verification processes. Finally, it lists the substantive audit procedures for testing accounts receivable, including confirmation of balances, testing accuracy and cutoff, evaluating reserves, and ensuring proper presentation and disclosures.
Prudential norms on Income recognition, asset classification and provisioning...Pankaj Baid
The document outlines the Reserve Bank of India's prudential norms for classifying bank loans as non-performing assets and provisions related to loan advances. Key points include:
- Loans are classified as NPAs if interest or principal payments are overdue for more than 90 days.
- Income from NPAs should not be recognized and any interest recorded previously must be reversed.
- NPAs are further classified as substandard, doubtful or loss assets based on number of days past due.
- Higher provisioning is required for worse classified assets to account for higher credit risk.
This document discusses internal controls, internal checks, internal audits, and the differences between them. It provides advantages and limitations of each. Internal controls help ensure organizational objectives are achieved. Internal checks involve separating duties so employees check each other's work. Internal audits continuously review financial and operational matters to detect errors and fraud. Key differences include internal checks focusing on transaction processing while internal controls ensure policy compliance, and internal audits are appointed by management for early error detection versus statutory audits appointed by shareholders.
The document summarizes the Reserve Bank of India's Clean Note Policy and guidelines regarding currency notes in India. It discusses RBI's sole authority to issue bank notes, security features of different denomination notes including ₹2000, ₹500, ₹200 and ₹100 notes, detection of counterfeit notes, distribution and disposal processes, challenges in implementing the Clean Note Policy, and initiatives taken by RBI like the Currency Verification and Processing System.
This document provides an overview of bank auditing in India. It discusses the different types of audits conducted on banks, including statutory audit, concurrent audit, and RBI audit. The stages of auditing are outlined, including preliminary work, evaluation of internal controls, preparing an audit program, and submitting the audit report. Key acts governing bank auditing in India are also listed. The purpose of bank auditing is to provide a true and fair assessment of the bank's financial position and ensure compliance with regulatory requirements.
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.
The document presents an audit report on the true and fair concept in accounting. It defines an audit report as a statement of collected facts that provides clear information to those without full knowledge. An auditor must verify accounts carefully and report whether they accurately present a company's true financial condition according to accounting principles. A true and fair report means accounts follow standards, transactions are properly classified, information is complete, and assets/liabilities are properly valued and reported. The document also distinguishes accounting from auditing and describes types of audit reports.
Basel I, II, and III are agreements that established regulatory standards for bank capital adequacy. Basel I, established in 1988, focused on credit risk and set minimum capital requirements of 8% of risk-weighted assets. Basel II, released in 2004, included three pillars: Pillar I established a revised minimum capital framework; Pillar II covered supervisory review; and Pillar III addressed market discipline through disclosure. It recommended a minimum ratio of total capital to risk-weighted assets of 8% and prescribed the minimum capital adequacy ratio of 9% for India. Basel III, finalized in 2017, strengthened bank capital requirements in response to the 2008 financial crisis.
An internal audit is designed to review what a company is doing in order to identify potential threats to the organization's financial health and profitability and to make suggestions for mitigating the risk associated with those threats.
Auditing ,rights and duties of an auditorfizaibrahim6
This document provides an overview of auditing and corporate reporting. It defines an audit as the independent examination of financial information of any entity to express an opinion. An auditor's role is to carefully check the accuracy of business records and ensure organizations maintain accurate financial statements. The document outlines the key features of an audit including critical review of systems and procedures, testing results and operations, and expressing an opinion. It also details an auditor's powers, rights such as access to books and ability to correct wrong statements, and duties like making a report on accounts and compliance with auditing standards.
The document discusses requirements for bank audits according to the Bank Company Act of 1991 as amended in 2013. It states that auditors must report on the adequacy of internal controls, risks of fraud, and consolidation of subsidiary financials. Auditors must also immediately report any serious violations of law or risks of default to Bangladesh Bank. The document provides details on audit procedures for loans and advances, common mistakes made by banks, mandatory financial statement disclosures, and relevant Bangladesh Bank reporting requirements for banks.
This document discusses the importance of credit monitoring and outlines the key aspects that should be monitored. It defines credit monitoring as tracking the performance of financing facilities from disbursement to repayment. Effective post-sanction monitoring is essential to evaluate asset performance and health over the loan tenure. Key areas that should be monitored include internal and external factors that could impact repayment, utilization of loans, account conduct, financial covenants, and security coverage. Timely identification of issues through monitoring can help prevent delinquency and write-offs.
Asset and Liability Management in Indian BanksAbhishek Anand
This document provides an overview of asset and liability management in Indian banks. It discusses key concepts like risk management, non-performing assets (NPAs), Reserve Bank of India (RBI) guidelines, the Narasimham Committee recommendations, Basel accords, and the ALM process. The key points are:
1) Banks face risks like liquidity risk, interest rate risk, currency risk, and credit risk that must be managed. RBI provides guidelines on liquidity risk management.
2) NPAs are loans that are overdue by 90 days. Banks must classify and make provisions for NPAs.
3) The Narasimham Committee in the 1990s recommended reforms like stronger banks
The document discusses internal controls in auditing, including the objectives, components, and case studies related to internal controls. It describes the control environment, risk assessment, control activities, information and communication, and monitoring as the main components of internal controls. The document also differentiates between substantive tests and tests of controls in auditing.
This document provides an overview of an audit and investigation course. The course aims to equip students with the necessary information to understand auditing and investigation practices. It covers 6 modules, including the audit framework and regulation, audit planning and risk assessment, audit evidence, and forensic investigation topics like fraud and money laundering. The document defines auditing and its objectives, compares it to investigation, and outlines assurance engagements and their key elements. It also discusses professional ethics principles, threats to independence, and auditors' rights, appointment, removal and regulation.
This presentation explains about the meaning as well as various types of audit report which an auditor has present in his books of accounts for the sake of the company's shareholders and various other groups.
This document discusses the challenges of auditing bank branches. It notes that bank audits require special considerations due to risks from large volumes of monetary transactions, the scale of bank operations across many branches and countries, and their extensive IT systems. Effective audit planning is important given time constraints from banks' short reporting windows. Pre-commencement activities for branch auditors include studying previous audit reports, regulations, and the bank's business. The audit program must cover the audit scope, risks, staff assignments, procedures, and timetable while allowing flexibility. Compliance with standards and regulations is also important.
The document discusses audit documentation and working papers. It defines audit documentation as evidence of the auditor's work, including the basis for conclusions and compliance with standards. It notes that audit documentation provides evidence of planning and performance. It also defines internal and external documentation. The document then discusses the purpose and contents of audit working papers, including planning, supervision, and supporting the auditor's opinion. It provides examples of common working paper components and formatting conventions.
Credit monitoring is the ongoing supervision of a loan account to ensure the borrower continues to meet the terms of the loan sanction. It helps maintain asset quality and prevent slippage into NPA status. There are four stages of monitoring - pre-sanction, post-sanction pre-disbursement, during disbursement, and post-disbursement. Regular inspections, financial statement reviews, and verifying end-use of funds are some key monitoring activities. Early warning signs like delays in submission of documents or frequent requests for extensions should trigger corrective actions like discussions with the borrower to resolve issues impacting the business.
This document discusses the audit of accounts receivable. It begins by outlining the key accounts, classes of transactions, business functions, and documents related to the revenue and receipts cycle. It then describes major internal controls such as separation of duties, authorization procedures, documentation standards, and verification processes. Finally, it lists the substantive audit procedures for testing accounts receivable, including confirmation of balances, testing accuracy and cutoff, evaluating reserves, and ensuring proper presentation and disclosures.
Prudential norms on Income recognition, asset classification and provisioning...Pankaj Baid
The document outlines the Reserve Bank of India's prudential norms for classifying bank loans as non-performing assets and provisions related to loan advances. Key points include:
- Loans are classified as NPAs if interest or principal payments are overdue for more than 90 days.
- Income from NPAs should not be recognized and any interest recorded previously must be reversed.
- NPAs are further classified as substandard, doubtful or loss assets based on number of days past due.
- Higher provisioning is required for worse classified assets to account for higher credit risk.
This document discusses internal controls, internal checks, internal audits, and the differences between them. It provides advantages and limitations of each. Internal controls help ensure organizational objectives are achieved. Internal checks involve separating duties so employees check each other's work. Internal audits continuously review financial and operational matters to detect errors and fraud. Key differences include internal checks focusing on transaction processing while internal controls ensure policy compliance, and internal audits are appointed by management for early error detection versus statutory audits appointed by shareholders.
The document summarizes the Reserve Bank of India's Clean Note Policy and guidelines regarding currency notes in India. It discusses RBI's sole authority to issue bank notes, security features of different denomination notes including ₹2000, ₹500, ₹200 and ₹100 notes, detection of counterfeit notes, distribution and disposal processes, challenges in implementing the Clean Note Policy, and initiatives taken by RBI like the Currency Verification and Processing System.
This document provides an overview of bank auditing in India. It discusses the different types of audits conducted on banks, including statutory audit, concurrent audit, and RBI audit. The stages of auditing are outlined, including preliminary work, evaluation of internal controls, preparing an audit program, and submitting the audit report. Key acts governing bank auditing in India are also listed. The purpose of bank auditing is to provide a true and fair assessment of the bank's financial position and ensure compliance with regulatory requirements.
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.
The document discusses the scope and procedures for bank concurrent audits. It describes concurrent audits as intended to supplement internal bank checks, reduce the time between transactions and examination, and improve bank functioning. The scope includes verification of advances, deposits, housekeeping, revenue leakage, foreign exchange transactions, and other key areas. General audit procedures involve both on-site and off-site verification and documentation. Essential documentation and records for concurrent audits are also outlined.
The document is a manual for conducting bank audits. It provides key information for auditors including the break even date for classifying accounts as non-performing assets, treatment of all facilities granted to a borrower once an account is classified as NPA, and important points regarding income recognition, asset classification, and provisioning norms. Categories that should be excluded from NPA classification are also outlined. Guidelines are given on reversal of unrealized income, treatment of leased assets, regularised accounts, and upgradation of loan accounts classified as NPAs.
The document provides an overview of auditing banks' deposits and loans. It discusses the roles and responsibilities of different types of auditors when conducting audits of banks. The auditor must be familiar with RBI regulations regarding loan sanctioning and disbursement. The auditor ensures documents are executed properly and reviews procedures for advancing loans. The auditor examines adherence to prudential norms and whether the financial position and internal controls of the bank are accurately reported.
RISKPRO INDIA
• Riskpro is India’s first national practice dedicated to risk management services and training, corporate governance, and global regulatory compliances
• Risk can be defined as a prospect of loss or reduced gain that can adversely affect the achievement of an organisation’s objectives
• When greed overtakes need, it spells trouble. Manifested as ‘bankruptcy’ in much of the developed world and ‘corruption’ closer to home, greed has clearly disrupted some major industrialised economies and enhanced the risks of doing business
• In today’s world, risks are not few. The reason companies so often fail to systematically manage their key risks is rooted in the way they define the risks they face. Risks are manageable and the answer to untapped business opportunities that lie dormant waiting for risk factors to turn favourable
• Riskpro was founded in 2009 with offices in Mumbai, Delhi, and Bangalore and it has already added eight member firms in Ahmedabad, Agra, Chennai, Gurgaon, Hyderabad, Jaipur, Ludhiana, and Pune. All our offices and member firms are well equipped and staffed with qualified professionals viz. CA, CWA, CS, CPA, CIA, CISA, CFA, and MBA
• Riskpro’s founders are qualified risk management specialists with extensive work experience in Europe and USA in several industries and financial institutions
• Riskpro aims to be the preferred service provider for large and medium enterprises on risk protection, corporate governance, and global regulatory issues; delivering state-of-the-art quality and timely services at viable rates
RISKPRO SERVICES
• Our four major practice specialisations /service lines are:
Risk: Enterprise Risk Management (services and training & recruitment)
Governance: Corporate Governance and Transparency
Compliance: Global and Indian Regulatory Compliances
Training: in all of the above service lines
• The Risk Practice deals with all classes of risks and processes viz. governance, strategic, systemic /infrastructure, compliance, reporting, and financial reporting. Processes require that key risks are properly identified, measured, monitored, controlled, and reported. Processes may also require tools like risk based internal audit, information security testing, and fraud investigations, to be employed
• The Governance Practice deals with corporate oversight and risk governance issues within an organization including business continuity planning, compliance with SEBI guidelines by listed companies, regulations relating to independent directors, investor expectation and protection, Clause-49 on corporate governance, etc
• The Compliance Practice covers a wide range of regulatory and environmental compliances including Sox, IFRS, Solvency II, Basel II /III, Corporate Laws & Direct Tax Code etc
• The Training Practice comprises of a variety of structured and /or industry specific training programs and modules designed and conducted by Riskpro experts and trainers at onsite (client or other off
Customer Satisfaction of SME Department in BRAC Bank Ltdkazi rasel
The document discusses BRAC Bank's SME division and a study on customer satisfaction with it. It provides background on BRAC Bank, outlines objectives to examine the SME division and conduct a customer satisfaction survey. Key findings of the survey found that 72% of customers found SME activities to be customer-oriented, but many were dissatisfied with loan amounts, interest rates, and security documentation processes. Suggestions are made to improve customer service, increase loan amounts, reduce interest rates and documentation processes.
The document discusses the process and procedures for conducting a stock audit in banks. It covers the meaning and purpose of stock audits, relevant auditing standards, the various stages of a stock audit including planning, fieldwork procedures, and reporting. Key procedures discussed include verifying physical inventory, assessing valuation of stock, analyzing debtors, recalculating drawing power, and ensuring adequate insurance coverage. The document provides guidance on planning, documentation, analytical procedures, internal control evaluation, and addressing common deficiencies observed in cash credit accounts.
This document is an internship report prepared by Mohammed Anwarul Hoque for his MBA program at Asian University of Bangladesh. The report discusses Risk Based Internal Audit practices at Bangladesh Bank, where Hoque completed a 3-month internship. The report includes an introduction to Bangladesh Bank, an overview of its Internal Audit Department, and details about the department's risk-based audit approach, goals, and implementation of annual audit plans. The report aims to study Bangladesh Bank's profile, the internal audit process, and strategies used to achieve departmental goals.
The document discusses the products and services offered by Development Credit Bank Ltd. to its customers in India. It provides an overview of the various account services, savings services, credit facilities, endowment facilities, and other services such as EFT, phone/email banking, debit cards, money transmittal, and cash chests. It also discusses the bank's branches across various Indian states and union territories, as well as its history originating from cooperative bank mergers in the 1930s and its transformation into a scheduled commercial bank in 1995.
This document discusses legal and regulatory compliance audit services provided by Intuit Consultancy. A compliance audit evaluates a company's adherence to applicable laws and regulations. It identifies risks of non-compliance and provides recommendations to improve compliance. Benefits include reduced penalties, stronger corporate governance and reputation. Intuit offers compliance audits covering various legal areas that follow a methodology of examining records, identifying gaps, and discussing recommendations with management.
Venture capital financing provides funding for startups, small businesses, and risky ventures. A business plan is essential for obtaining venture capital and must convince investors of the company's goals, market opportunity, management team, and financial projections. The plan should summarize the business, products, market analysis, marketing strategy, operations, management, and provide 3-5 years of financial projections. It must demonstrate the need for funding and how investors will achieve a return on their investment.
The audit report communicates the auditor's opinion on the financial statements and sets out requirements for its content and format. The standard audit report includes basic elements like the title, addressee, management and auditor responsibilities, scope of the audit, and opinion. There are two main types of reports - unqualified and qualified. An unqualified report means the financials fairly represent the entity. A qualified report is issued if problems cannot be resolved with management.
The document discusses auditing bank branches in a computerized information system environment. It covers developments in banking IT systems, the differences between financial and information system audits, risks in computerized environments, and practical approaches for auditing computerized branches effectively. Key points include reviewing system controls, access rights, backups, reconciliations between primary and subsidiary ledgers, and generating and examining system reports.
The document discusses human resource audits. It defines an HR audit as examining and evaluating HR policies, procedures, and practices to determine the effectiveness and efficiency of human resource management. The purpose of an HR audit is to assess HR functions and identify strengths and weaknesses. Benefits include improving the HR department's image, encouraging professionalism, ensuring legal compliance, and reducing costs. Key areas audited include HR functions, managerial compliance, HR climate, and corporate strategy. Common approaches to HR audits are comparative, outside authority, statistical, compliance, and management by objectives. The conclusion emphasizes that HR audits help minimize turnover by improving training, working conditions, compensation, and advancement opportunities.
The document discusses conducting a human resource audit. It defines an HR audit as examining an organization's HR policies, procedures, documentation and practices. The purpose is to analyze and improve the HR functions by identifying strengths and weaknesses. It outlines the scope, steps, components, and practices that should be reviewed in an HR audit. These include staffing, compensation, training, performance management, and personnel records. The document also discusses using a SWOT analysis and providing audit feedback and recommendations to further improve the HR system.
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
The document discusses various topics related to auditing of banks, insurance companies, cooperative societies, stock exchanges, NBFCs, mutual funds, and depositories. It provides an overview of the relevant legislation, accounting practices, internal controls, audit procedures, and reporting requirements for auditing these different entities. The key points covered include the Reserve Bank of India Act, Banking Regulation Act, procedures for bank audits such as verification of assets and liabilities, non-performing assets, long-form audit reports. For insurance companies, it discusses the Insurance Act, general insurance business nationalization act, features of accounting, and content of audit reports.
The document provides guidelines for concurrent auditors to audit bank branches. Some key points:
- Concurrent auditors must thoroughly review the enclosed guidelines and reporting formats. Quarterly reports only need to be submitted for the months ending March, June, September, and December; no monthly reports are required for these months.
- The objective of concurrent audit is to identify weaknesses, deficiencies, and areas for improvement on an ongoing basis in order to minimize errors and fraud. Auditors must check that transactions are properly recorded, documented, and compliant with bank policies.
- Areas to be covered include cash, deposits, advances, foreign exchange, housekeeping, KYC/AML norms, NPA management, and
This document provides notes to the accounts of Karnataka Bank Ltd. for the year ending 2010. It includes information on reconciliation of branch adjustments, prior period items, share issue expenses, employee benefits, segment reporting, related party transactions, accounting for taxes, impairment of assets, provisions and contingencies, and additional disclosures on risk exposures in derivatives and employee stock options as required by applicable accounting standards and RBI guidelines.
1) The auditor audited the financial statements of Karur Vysya Bank for the year ending March 2012 which included branches audited by the auditor and other branch auditors.
2) Management is responsible for preparing the financial statements according to relevant regulations. The auditor is responsible for expressing an opinion on if the statements are free of material misstatements.
3) The auditor believes the audit evidence is sufficient to provide an opinion that the financial statements give a true and fair view of the bank's affairs according to accounting standards and regulations.
Lecture 1 Intro to financial Analysis.pptAliHadi319773
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Bank's Branch Audit Process
1. Assignment Report on-
“Bank’s Branch Audit Process”
With reference to ICICI Bank
Submitted To:
Prof. Prasad Joshi Sir
By:
Somnath Pagar
MBA II
(2013-2015)
2. Introduction:
Banking Industry in India is developing and expanding day by day. The
basic work culture in banks in India is fairly different as compared to banks in
other countries. The customers (Deposit holders or borrowers) of the banks are
being serviced now through Internet, Core Banking Solutions(CBS) etc resulting
very less personal interaction with bankers. Because of this changing face of
banking industry it is very much necessary to properly plan Bank Branch Audit.
Banking Industry is a facebook of Economy of the Country. It speaks about
economic growth, its stability and soundness. Fortunately, due to regulations and
controls, Indian Banking Industry could sustain when banks in others countries are
facing problems due to threats like frauds etc.
Meaning and Definition of Statutory Audit:
In the India, the term "statutory auditor" refers to an external auditor whose
appointment is mandated by law. A "statutory audit" is a legally required review of
the accuracy of a company's or government's financial records. The purpose of a
statutory audit is the same as the purpose of any other audit - to determine whether
an organization is providing a fair and accurate representation of its financial
position by examining information such as bank balances, bookkeeping records
and financial transactions.
Some of the Laws applicable to the Banks:
The Banking Regulation Act, 1949
State Bank of India Act, 1955
State Bank of India (Subsidiary Banks) Act, 1959
The Companies Act, 1956 (registration of charges, resolutions, borrowing
powers etc.)
The Reserve Bank of India Act, 1934
Prevention of Money Laundering Act, 2002
3. Securitisation & Reconstruction of Financial Assets & Enforcement of
Security Interest Act, 2002
The Foreign Exchange Management Act
The Income Tax Act, 1961 (Tax Audit)
Service Tax Rules
The Stamp Act of the States/ The Indian Stamp Act
Negotiable Instrument Act
Law of Limitation
Bank Branch Audit Process:
1. Pre-commencement Work
The following points have to be considered before commencing the audit
o Receipt of appointment letter
o Compliance u/s. 226(3) of Companies Act, 1956 with regard to
qualifications and disqualifications of auditors
Pre-commencement Work
Understanding the business of bank branch
Overall audit plan / Audit Programme
Audit Procedures:
Substantive Testing & Analytical Procedure
Report
4. None of the following persons shall be qualified for appointment as auditor of a
company-
A body corporate;
An officer or employee of the company;
A person who is a partner, or who is in the employment, of an officer or
employee of the company;
A person who is indebted to the company for an amount exceeding one
thousand rupees, or who has given any guarantee or provided any security
in connection with the indebtedness of any third person to the company for
an amount exceeding one thousand rupees;
A person holding any security of that company after a period of one year
from the date of the companies (Amendment) Act, 2000
o Internal Auditor cannot be statutory auditor for the same financial
year
o The nature of audit work has to be ascertained as to whether it is
Concurrent Audit, Stock Audit, Revenue Audit, Credit Risk Auditor
or any other Assignments of any branch of that bank
o Decision for Acceptance or Rejection of Assignment has to be
communicated to the concerned authority
o It should be ensured that minimum fees are set as per RBI circular
o The Objective and Scope of Work has to be considered with specific
considerations to time available for conducting audit AAS-2 deals
with Objective and Scope of the audit of financial statements
o Before accepting the audit assignment, the availability /outsourcing of
staff for conducting bank audit has to be considered. In doing so the
auditor should follow the guidance given in AAS 10 which deals with
using the work of another auditor.
5. o The Previous Auditor must be communicated (Clause 8 of First
Schedule of Chartered Accountants Act, 1949)
o Engagement Letter under AAS 26 has to be issued
o There must be a Communication with joint auditor as per AAS 12
o A list of accounting standard applicable to the branch must be
prepared
o Copy of all circulars of RBI applicable to branch have to be
obtained and kept ready for reference
o Attending branch audit seminars could enhance the auditors
knowledge on bank audits
o Banking terminology and schemes should be well understood
o A reading of Guidance Note on audit of banks by ICAI would provide
valuable guidance.
2. Understanding the business of bank branch
The next step is in understanding the business of the branch with specific
reference to
A. Type of constitution
B. Applicable Laws
2. Banking Regulation Act, 1949
3. Reserve Bank of India, 1934
4. Multi State Co-operative Act, 2002
5. Relevant State Co-operative Act
6. Companies Act, 1956
7. Circulars/Guidelines issued by RBI
8. Circulars/Guidelines issued by Head Office of bank
9. Service Tax Provisions
6. 10.TDS Provisions under Income tax Act
11.Prevention of Money Laundering Act, 2002
C. Type/Nature of transactions
Quantum of Transactions under various heads as detailed below:
Sr. No. Particulars Nos. Total Value
A P & L Income
A1 Interest earned
A2 Other income
B P & L expenditure
B1 Interest expended
B2 Operating expenses
C Balance Sheet Assets
C1 Cash and balance with RBI
C2 Money at call and short notice
C3 Investments
C4 Advances
C5 Fixed assets
C6 Other assets
D. Balance sheet liabilities
D1 Deposits
D2 Borrowings
D3 Other liabilities and provisions
E. Other items
E1 Contingent liabilities
E2 Bill for collection
D. Computerization System / software used by the branch
7. E. Security aspect of software, output of software, interlinking between
various reports
F. Internal Control / Risk Assessment
G. Risk Management / Back up system
12.Overall Audit Plan - Audit Programme
While drafting the audit programme, the type of reports to be
submitted have to be considered. There are four types of reports.
1. Unqualified Report
2. Qualified Report
3. Disclaimer of Opinion
4. Adverse Report
Auditor should plan his work based on the client’s business to enable him to
conduct an effective audit in an efficient and timely manner as per AAS-
8(Audit Planning).
The auditor should design and select an audit sample, perform audit
procedures thereon, and evaluate sample results so as to provide sufficient
appropriate audit evidence as per AAS-15 (Audit sampling)
13.Testing & Analytical Procedure Major Parameters
Sr. Item Important Audit Checks
1.
Deposits
i. Term
ii. Saving
iii. Current
iv. FCNR/NRE/NRNR
Verify transactions during the year relating to:
New Accounts opened;
Accounts closed;
Dormant Accounts;
Interest calculations;
Test check account statements for unusual/ large/overdraft
8. transactions;
Overdue Term deposits & banks policy for its renewal;
Accrual of interest;
RBI Norms for Non-resident deposits & its operations - with due
importance to opening and operation of accounts like NRE, NRNR,
FCNR, RFC,etc.;
Interest on various types of deposits; Tax Deducted at Source.
Large deposits placed at the end of the year (probable window
dressing).
Examine unusual trend in account opening or account closing,
dormant accounts that have suddenly been reactivated by heavy
cash withdrawals or deposits, overdrawing, etc.
Examine interest trends as compared to average annual deposits
(monthly average figures).
2. Advances
Review monitoring reports (irregularity reports) sent by the branch
to the controlling authorities in respect of irregular advances.
Review appraisal system, Files of large as well as critical
borrowers, sanctions, disbursement, renewals, documentation,
systems, securities, etc.
Review on test check basis operations in the Advances Accounts.
Compliance of sanction terms and conditions in the case of new
advances.
Whether the borrower is regular in submission of stock statements,
book debt statements, insurance policies, balance sheets, half yearly
results, etc. and whether penal interest is charged in case of default/
delay in submission of such data.
Charge of interest and recovery for each quarter or as applicable to
be verified.
Review the monitoring system, i.e. monitoring end use of funds,
analytical system prevalent for the advances, cash flow monitoring,
branch follow-up, consortium meetings, inspection reports, stock
audit reports, market intelligence (industry analysis), securities
updation, etc.
Check classification of advances, income recognition and
provisioning as per RBI Norms/ Circulars.
Check whether Non-Fund based (Letter of Credits/ Bank
Guarantees) exposure of the borrowers is within the sanctioned
limits.
3. Profit & Loss A/c Income/ Expenditure Verify:
Short debit of interest/ commission on advances;
Excess credit of interest on deposits;
In case the discrepancies are existing in large number of cases, the
auditor should consider the impact of the same on the accounts;
Determine whether the discrepancies noticed are intentional or by
error;
9. Check whether the recurrence of such discrepancies are general or
in respect of some specific clients;
Divergent Trends:
Divergent trends in income/ expenditure of the current year may be
analysed with the figures of the previous year.
Wherever a divergent trend is observed, obtain an explanation
along with supporting evidences like monthly average figures,
composition of the income/ expenditure, etc.
4. Balance Sheet Cash & Bank Balances:
Physically verify the Cash Balance as on March 31….. (Year end)
or reconcile the cash balance from the date of verification.
Confirm and reconcile the Balances with banks.
Investments:
Physically verify the Investments held by the branch on behalf of
Head Office and issue certificate of physical verification of
investments to bank’s Investments Department.
Check receipt of interest and its subsequent credit to be given to
Head Office.
Advances Provisioning:
As per RBI norms, unrealised interest on NPA accounts should be
reversed and not charged to “Advance Accounts”. Reversal of
unrealised interest of previous years in case of NPA accounts is
required to be checked.
Partial Recovery in respect of NPA accounts should be generally
appropriated against principal amount in respect of doubtful assets.
Fixed Assets:
Check Inter-branch transfer memos relating to Fixed Assets and
whether they have been correctly classified in the accounts and
depreciation accounting thereof.
Inter Branch Reconciliation (IBR):
Understand the IBR system and accordingly prepare an audit plan
to review the IBR transactions. The large volume of Inter Branch
Transactions and the large number of unreconciled entries in the
banking system makes the area fraud-prone.
Check-up head office inward communication to branch to ascertain
date up to which statements relating to inter branch reconciliation
have been sent.
Suspense Accounts, Sundry Deposits, etc.:
Ask for and analyse their year-wise break-up.
Check the nature of entries parked in such Accounts.
Check any movement in such old balances and whether the same is
genuine and has been properly authorized by the competent
authority.
Check for any revenue items lying in such accounts and whether
proper treatment has been given for the same.
10. 14.Report
Sample Audit Report (ICICI Bank)
Auditor's Report (ICICI Bank)
1. We have audited the attached Balance Sheet of ICICI Bank Limited
(the ''Bank'') as at 31 March 2014 and also the Profit and Loss Account
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Incorporated in the said financial statements are the returns of the
Singapore, Bahrain, Hong Kong, Dubai, Qatar, Sri Lanka and New York-USA
branches of the Bank, audited by other auditors.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Bank in accordance with
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 (''the
Act''), read with General Circular 8/2014 dated 4 April 2014 issued by
the Ministry of Corporate Affairs and with guidelines issued by the
Reserve Bank of India (''RBI'') insofar as they are applicable to the
Bank and in conformity with Form A and B (revised) of the Third
Schedule to the Banking Regulation Act, 1949 as applicable. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Bank''s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
11. and appropriate to provide a basis for our audit opinion.
OPINION
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Banking Regulation Act, 1949 and the Act in
the manner so required for banking companies, and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Bank as at 31 March 2014;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
7. The Balance Sheet and the Profit and Loss Account have been drawn
up in accordance with the provision of section 29 of the Banking
Regulation Act, 1949 read with section 211 of the Act.
8. We report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit and have found them to be satisfactory;
(b) In our opinion, the transactions of the Bank which have come to our
notice have been within its powers;
(c) The financial accounting systems of the Bank are centralised and
therefore, accounting returns for the purpose of preparing financial
statements are not required to be submitted by the branches; we have
visited 110 branches for the purpose of our audit;
9. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act, to the extent they are not
inconsistent with the guidelines issued by RBI.
10. We further report that:
(a) In our opinion, proper books of account as required by law have
been kept by the Bank so far as appears from our examination of those
books;
(b) The Balance Sheet, Profit and Loss Account, and Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
(c) On the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
12. OTHER MATTER
11. We did not audit the financial statements of Singapore, Bahrain,
Hong Kong, Dubai, Qatar, Sri Lanka and New York-USA branches, whose
financial statements reflect total assets of Rs. 1,630,498 million as at
31 March 2014, the total revenue of Rs. 69,223 million for the year ended
31 March 2014 and net cash flows amounting to Rs. 209,916 million for the
year ended 31 March 2014. These financial statements have been audited
by other auditors, duly qualified to act as auditors in the country of
incorporation of the said branches, whose reports have been furnished
to us, and our opinion is based solely on the report of other auditors.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm registration number: 301003E
per Shrawan Jalan
Partner
Membership No.: 102102
Place: Mumbai
Date: 25 April 2014
Source: MoneyControl.com
****