Concurrent audit

Can any one tell me what al documentations we should verify in a concurrent audit of a bank if we find a transfer involving crores or even rtgs amounting to crores. is there any RBI regulations regarding that.

You can check following:

1.KYC Norms compliance by bank

2.NPA

3.Physical cash verification

4.Physical Stationery verification and security measures applied by bank for stationery items

5.Cash retention limit of the branch and if cash is exceeding that limit, branch should report to HO/RO

6.During the month new CC/OD/SB/Current account opened.

7.Very important- documentation of these above opened accounts. for CC/OD, documents should be as per sanctioned letter (strictly)

8.Monthly Stock statement in case of CC/OD account

These are few broad areas which you must check, apart from these things, as you will do the audit, you will understand many things.

Originally posted by : Samboo varadan
	Can any one tell me what al documentations we should verify in a concurrent audit of a bank if we find a transfer involving crores or even rtgs amounting to crores. is there any RBI regulations regarding that.

Thanks.. But  what i want to know is how i can verify a single transaction involving transfer of crores of rupees  is perfectly done by complying al the required formalities specified by RBI.

Hi Samboo,

in a concurrent audit, you select transactions on a sample basis and based on that you report your findings in the Long form audit report (LFAR). 

So when you select a particular transaction, do a 'walkthrough' for that sample. right from it's initiation to completion.

FIrst check, if the RTGS request is valid, if it is by the appropriate authority, is it within his powers to transfer the said amount.

Then, check for clearing aspect of the transactio, if it was settled in the same settlement session (RTGS transactions have 3 settlement sessions daily, except Sat 2 sessions & Sun)

And finally check if, the corresponding entry has been reflected in the account on the same day, after settlement. (This step is important when it comes to ascertaining the correct closing balance)