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Concurrent audit of banks

27 January 2015

hii can anyone plz tell what to do exactly in concurrent audit of banks other than KYC for the beginner n also some ways to find out revenue leakage..

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shivaji prasad bhimavarapu (CHARTERED ACCOUNTANT) (2391 Points)
Replied 27 January 2015

Take RBI circulars for Interests and check the master data of each borrower for correctness. Check the Interest option whether it is updated automatically with the entire banking system with checking the option tab " Y".

For high valued cash vouchers on daily basis in accounts, check the accounts for any possibilities of PMLA ( Money laundering) violations.

Security guard licence can also be verified.

Whether staff are involved in writing the counterfoils, if yes, ask them not to do.

Check whther penal interests are beong charged for non submission of stocks, renewals etc.

Niloni (Student) (21 Points)
Replied 27 January 2015

Originally posted by : Surbhi gupta
	hii can anyone plz tell what to do exactly in concurrent audit of banks other than KYC for the beginner n also some ways to find out revenue leakage..

In a broad overview for what to do in Concurrent Audit, you should check all the operational areas of the branch/ unit under audit, whether they are in compliance with the internal ciruclars & guidelines of the bank as well as overall guidelines and ciruclars of the RBI.

Main areas to be checked are advances and deposits which includes, checking of new loans sanctioned, monitoring of existing loans, foreign exchange compliances, Fema compliances etc.

For Revenue Leakage you should focus on areas where you can get big volume of leakage like non recovery of processing charges, unit inspection charges, difference in ROI applied and sanctioned etc.