Bank audit ppt 1
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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.
Bank audit ppt 1
- 1. Bank audit Presented by: Shweta Mankar. Guided by: Prof.Dr.Sheetal lakde madam. Prof.Prachi salunke madam
- 2. NO. Particular 1. Introduction 2. What Is Audit,Auditor Qualification 3. Laws Applicable For Banking 4. Types Of Audit in Banks 5. Stages In Bank Audit • Audit Planning • Audit Report 6. Audit/verification Aspects Of Items Of Balance Sheet 7. Audit/verification Aspects Of Items Of Profit And Loss 8. Asset Classification 9. Conclusion
- 3. This presention is to view the task perform by an auditor while conducting the audit of bank deposit and loans and advances. The auditor has to ensure that documents are executed as per the terms of sanction. The auditor examine the procedure for review of advances laid down by the authorities has been complied with or not. Also examine the that bank followed every rules and regulation and RBI guidelines. The auditing not only provide true and fair view but it also helps us to financial position and internal control system of a bank.
- 4. What is audit and Auditor qualification Meaning: It is a systematic and independent examination of the record of an enterprise and to state whether the financial position shows a true and fair view. An audit is done on the basis of evidential document. Qualification: The auditor must be a Chartered Accountant as per the Chartered Accountant Act,1949 and must hold a certificate of practice. A chartered accountant is a person who is a member of the institute of chartered accountant in india.
- 5. Laws applicable for banking
- 6. By Bank’s own staff appointed as auditor under the By a firm of Chartered Accountants appointed by the control of inspection department of the bank. Bank, by RBI,any Government authority. Scope is unlimited and covers every aspect of branch Scope is defined in the appointment letter/letter by Working. RBI /Govt. authority. Surprise inspection at regular interval. Generally pre intimated to the branch to be audited. Concurrent Audit: concurrent audit is a systematic Statutory Audit: Statutory audit is an audit prescribed Examination of all financial transactions at a branch on by the different statute like RBI,Income Tax, Compan Continuous basis to ensure accuracy and due compliance Act,etc. statutory audit of banks is mandatory.statutory With the internal system, procedures and guidelines of Auditor are appointed by RBI every year after the end of The bank. the previous financial year,in every branch of the banks, a very rigorous audit is conducted.
- 7. Stages in Bank Audit 1)Preliminary work 2)Evaluation of internal control system 3)Preparation of Audit Programme 4)Preparation and Submission of Audit Report
- 8. :In performing the audit the auditor should have the knowledge which bank is operate.the auditor introduce self with the relevant provisions and laws and ascertain the duties and responsibilities,the auditor also known the economic environment in which bank is operate. a) Audit planning:1) obtaining internal audit report,proper allocation of work among audit team. 2) Review latest available inspection report and concurrent audit report of branch. 3)study of significant policies of the branch and computer system. 4) Study the previous year’s statutory audit report and LFAR 5) Keep a note of points you came across during audit, which are relevant for LFAR. :Internal control evaluation is an imp.element of the audit process in the case of audit of banks.Evaluation of design and operation of ICS enable the bank auditor to perform more effective audits.internal control would include Accounting and Administrative controls a)Accounting Controls:Review the financial records and register as to ensure their reliability, ensure prevention of errors and omission and irregularities. b)Administrative Control: Review the decision making process and laying down authority / delegation of powers by the management. : In framing audit programme due weightage should be given by the auditor to areas where in his view there areas weakness in the internal controls ,the statutory audit programme is different from the branch auditor, at the branch level only basic banking operation are covered but in Statutory audit programme at the head office( provisions for gratuity, inter office accounts etc.)
- 9. : The audit report is the end product of the audit.through the audit report the auditor convey his observation/comments on the financial statements. There are3 types of audit report a) Statutory Audit Report: It contains the following Paragraphs:1)Report on financial Statements 2)Management Responsibility for the financial statements. 3)Report on other Legal and Regulatory Requirments. 4) opinion b)Tax Audit Report:1)Tax audit report is done under section 44AB of the IT act, 2)Form 3 CA 3)Form 3 CD c)Long Form Audit Report:1)A questionnaire formulated by RBI. 2)To be filled by auditor after discussing the points with branch head. 3) Format of LFAR form may be found online easily.
- 11. Performing Asset: Performing asset is one which generates periodical income and payments,as and when due or within the minimum lag of two quarters. Non-Performing Asset:The problem of NPA arises when the dues to the bank,interest/other charges or installments are not being received as per scheduled. Types of NPA 1)Standard Asset 2)Sub- Standard Asset 3)Doubtful Asset 4)Loss Asset
- 12. Conclusion