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The Concurrent Audit of the banks has almost 15 years old now. Earlier days It was just an allotment and expectations are to carry out the audit as per the con current audit simple manual provided along with the appointment.       

The general terms were:

Con current audit is a transaction based audit. More emphasis was on spot rectification than reporting. Early detection of errors and frauds. It is an extended management function.             

Since the work has been assigned to a professional, an outsider independent person the expectations were high. Being a professional he was given a full functional independence for the methods, time, techniques, etc       to carry out the said assignment, Even though the managements, (Audi tee) were more and large satisfied with the work done by the professionals, at least this reflects from the interaction between the auditee and auditor.

Gradually, the auditees are more assertive and they now want the independent person to behave and carryout  the assignment as guided by them. Auditee assertiveness increases day by day and some  of them are as follows.  

Auditors should attend all the working days, including Saturdays though their offices, article staff work on five days in a week. You will not be surprised, that this condition may be extended that the auditor should also attend on Sunday and visit the branch to observed whether the branch is locked properly and their was no unauthorized  persons  around the branch on Sunday. The coverage of con current audit may be extended to include that the auditor should attend before half an hour of branch opening time  and observed whether the branch is cleaned properly and if any pitfalls  are observed the same should be attended immediately.    

The Auditee also decide the number of days the staff of the auditor attend the branch and number of days the partner or senior person to attend  the branch. The frequency of meeting with the branch managers are also determined. The days are not far when the auditee will decide the subject, day, and number of  sentences the auditor will  talk to the branch managers.

The auditor has given the fixed dates for  submission of the reports and the delays are not allowed and be taken as delay on the part of auditor. He should  be reminded for the delay. This may be extended to submit the letter of condo nation  along with the delayed audit report unless the condo nation letter is attached the  report will  not be accepted.      

Auditee now a days, also want auditors to sign and submit a Do and Don'ts a list of things to be and not to be done by the auditors. This may be extended to include the dress code for the auditors and their staff and the branch has to report  number of days the audit staff and auditor was not in uniform, the washing allowance which then be included in audit fees may be reduced  proportionately for these days.          

Auditee also decide the number of banks and branch an auditor has to accept for the con current audit. An auditor has to suffice with in the fees he receive from the work allowed to be accepted by the auditee. The days are not far away that the auditee will decide that the auditor  has to manage their family within specified amount received  from such work, and the auditor and his staff should not watch more than two movie one Hindi and one English to remain more attentive for the audit work.         

Auditors has  to believe and accept the fact that, the auditee, their staff, the branch staff are always on the right side, more effective in work, more knowledgeable, more efficient, more experience, helpful, diligent, decent, attentive, high on integrity,  more practical all of them helping the auditor for his completion of work and get his fees.           

And on the contrary, the auditors and their staff has to be trained, inform, guided, reminded, punished for the better performance.           

To my mind, the extended conditions will be a result of five percent misguiders of total professionals, but still these five percent manage effectively now as they are otherwise good managers and ninety five percent wonder the necessity of such terms and conditions.

In spite of all the above, an auditor is suppose to be an independent professional person which is their since last fifteen years and will remain in coming twenty years.     

CA.Satish Badve           

B.Com.F.C.A.D.C.M.D.I.C.A.(ICA)              


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