The statutory audit of the branches of the bank are approaching very fast. This audit has two constraints namely shortest time for completion and maximum coverage with long period of full year transactions.
According to the experience, I think these constraints con be overcome by ODD MAN CONCEPT, may be called as ODD TRANSACTON CONCEPT.
To complete the audit in time schedule we have to concentrate on ODD MAN than a regular man. More time should be devoted for ODD Man and propriety to handle and settle him first.
Odd man here is assumed to be look like a regular man features but have hidden abnormal, or adverse features. This concept will be clear by following example.
In case of Loans and Advances in the bank branch, the classification of the advances as Standard Assets i.e.,Standard Regular is a common man which requires nil attention. The classification of the advances as Sub-Standard Assets i.e., NPA is a dead man and which requires a least attention. The classification of advances as Standard (Irregular) is a Odd man or assets which should be given maximum attention. This category has to be searched and are mostly hidden in
In case of transactions generally Odd man found parked in Nominal, Suspense, Sensitive, accounting heads and may sometime take a fresh name which can only be found out in General ledger and trial balance of the last but one to two days.
It is not easy to found the odd man but had following features:
i. Not regular in routine.
ii. One time appearance.
iii. Appearance in the start or end of the year.
iv. Volatile features.
v. Always and Urgent man, a man in hurry.
vi. Will exists in group of relatives or friends.
vii. Have needy always.
viii. Not follow the normal trends.
Once such features looked in to he can be very easily single out for treatment.
Now a days it is possible to detect the features by way of generating the following reports from the software. In most of the same are generated regularly and appear on the reports file.
a. Overdue in CC/OD accounts.
b. Overdue in DL/TL accounts.
c. Overdue in L/C, P/C, Bills.
d. Zero DP in CC/OD accounts
e. Zero DP in DL/TL accounts.
f. Report on Unrecovered Int and charges in CC/OD, DL/TL accounts.
g. Debit balance in SB/CA accounts
h. Debit in Income account and Credit in Expense A/c .
i. List of NPA as per system particularly last Friday before the year end.
j. Probable NPA as per system.
k. Entries outstanding in Nominal, Sensitive, Suspense accounts for the year under audit.
Since KYC is utmost factors in recent days the abnormal features in non compliance in KYC which requires most attention are,
i. Insufficient address.
ii. Worthless Introduction.
iii. Unclear filling of details,
iv. Non or less readable, an odd man may be found out in these features.
In case of the Audit Reports already conducted by the branch, the Closure of the each report will be viewed with care. The general comments of noted, done,rectified means there is odd man feature exists. A clear comment of specific things carried out are normal man.
Do not read all the lines in the audit reports, but try to understand and read what is implied and not written in the lines.
Remember, the Sholay Mausi dialog, "Bhalehi Saw borai hai tumhare dostme tum uske tarif he karte ho."
The words like A/c needs close monitoring, Needs day-to-day monitoring, should be taken care of, etc indicates odd man features.
Delay in filing the control returns and incomplete information or non filling of all the details in all columns of the returns may indicate hiding or excuse of not giving the full information.
Always have an independent view on all the odd features without affecting what is written in reports, returns or explained by the branches. This will help in understanding and taking a current view and specific adverse feature.
A look with plain eyes always help in viewing the correct things, it is important to visit some of the odd man visits to understand their nature.
Hope the ODD MAN CONCEPT will definitely reduce the timing of audit and normal mans are viewed normally with least or no time.
CA Satish C. Badve