Preface

Sr. No

Chapters

Part I – General

1

History Of Banking

2

Types Of Banks And Banking Activities

3

Glossary Of Terms Used In Banks

4

Bank audit process

Part II – Pre-Commencement Work

5

Provisions Relating To Auditor

6

Letters Seeking Information

6.1

Example Of A Letter Seeking Information From Branch Manager Before Commencement Of Audit

6.2

Example Of A Letter To Branch Manager For Information Required On LFAR

Part III – Understanding The Banking Business

7

Laws Applicable To Banks

8

Accounting System In Banks

9

Banking Softwares

10

General Internal Control In Banks

11

Internal Controls In An EDP environment

12

Asset Classification Income Recognition and Provisioning

13

Foreign Exchange Transactions

14

Salient Features Of Jilani, Ghosh Committees And LFAR

Part IV – Audit Planning

15

Audit Planning

Part V – Audit Procedures

16

Audit Procedures In Bank

17

Checklists

17.1

 LFAR

17.2

Items Of Balance Sheet And Profit & Loss Accounts

17.3

Verification Of Foreign Exchange Transactions

18

Documents To Be Taken From Management

19

Management Representation Letters

19.1

 LFAR

19.2

 Ghosh Committee

19.3

 Jilani Committee

19.4

 Tax Audit Report

19.5

 Main Audit Report

Part VI – Audit Reports

20

Bank Branch Audit Reports

21

Disclosures Mandated By RBI  In Notes To Accounts

Part VII – Appendixes

Annexure A - Format Of Balance Sheet And Profit & Loss Account

Annexure B - RBI circular on Provisioning Requirement For Standard Advances

Annexure C - RBI Master Circular – Prudential Norms On Income Recognition, Asset Classification And Provisioning Pertaining To Advances