Bank guarantees

This query is : Resolved

Report Abuse Follow Query Ask a Query

Guruprasadreddy

Guruprasadreddy (Querist)
Follow

20 November 2015 what is bank guarantee? how it can be verified during concurrent audit? how to calculate interest?

Puneet

Puneet (Expert)
Follow

25 November 2015 Dear Guruprasad,
Bank Guarantee is basically a letter issued by bank on request and by paying appropriate commission to bank.

Bank guarantee are of 2 types : Financial guarantee and performance guarantee.

As part of audit procedures once can verify the bank guarantee by taking confirmation on its validity from the issuing bank.

Hope this clarifies.
Thanks,