Statutory branch, concurrent, and stock audits for banks, to RBI and institutional standards.
Bank Audits are highly specialized engagements critical to the stability of the financial system. For our CA firm, this encompasses Statutory Branch Audits (SBA), Concurrent Audits, Revenue Audits, and Stock/Receivable Audits conducted on behalf of banking institutions. Driven by the latest Master Directions from the Reserve Bank of India (RBI) and the ICAI's Guidance Note on Audit of Banks (2026 Edition), modern bank auditing requires a deep understanding of core banking systems (CBS), risk management frameworks, and intricate compliance mandates.
The scope of a bank audit has grown increasingly rigorous, moving far beyond basic vouching. A primary focus is evaluating loan portfolios against the latest Income Recognition and Asset Classification (IRAC) norms to ensure accurate identification and provisioning of Non-Performing Assets (NPAs). We meticulously verify drawing power (DP) calculations, ensure proper income recognition (where interest on NPAs cannot be accrued), and examine stock statements and security documentation. Additionally, the Long Form Audit Report (LFAR) requires auditors to comment extensively on internal control systems, fraud detection mechanisms, and credit appraisal processes, making the audit a comprehensive, qualitative review of branch health.
ScopeStatutory branch, concurrent, and stock audit assignments.
StandardsPer RBI guidelines and institutional requirements.
TurnaroundWithin the strict timelines banking assignments demand.
A Statutory Audit is an annual, legally mandated exercise to report on the true and fair view of the branch's financial statements as of March 31st. A Concurrent Audit is an ongoing, continuous examination of transactions as they happen throughout the year, designed to ensure early detection of errors, fraud, or procedural lapses.
Yes. We verify stock and receivables held as security against advances and report on their adequacy and valuation.
Auditors follow the RBI's stringent Income Recognition and Asset Classification (IRAC) norms. Generally, if interest or principal installment remains overdue for a period of more than 90 days, the account is classified as a Non-Performing Asset.
The LFAR is a comprehensive, structured report submitted by the statutory branch auditor to the bank's management and statutory central auditors. It highlights critical operational deficiencies, credit appraisal weaknesses, and internal control lapses that aren't visible in standard financial statements.
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