What are control returns in bank 's concurrent audit?

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lakshmi narayana

lakshmi narayana (Querist)
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30 July 2015 plz tell me what are the control returns, which are sent by branch to head office in banking sector

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2025 Control Returns in a bank’s concurrent audit context are periodic summary reports sent by a branch to the Head Office (HO). These returns help the HO monitor the branch’s operations, internal controls, and compliance with banking norms.
What are Control Returns?
They are periodic statements/reports (daily, weekly, monthly) generated by a branch.
Provide summarized data on various key areas like cash balances, advances, deposits, NPA status, limit utilizations, and compliance.
Help HO track branch performance and detect anomalies early.
Form an important part of internal control and risk management framework.
Typical Components of Control Returns
Cash Control Returns:
Cash balances (cash in hand, cash at vault).
Daily cash transactions summary.
Excess/shortage details.
Advances Control Returns:
Status of loans and advances.
Limits sanctioned vs utilized.
Overdue loans and NPA position.
Security documents status.
Deposits Control Returns:
Summary of deposit accounts opened/closed.
Deposit balances (term deposits, savings, current).
Maturity of deposits and renewals.
Inter-branch Transactions:
Summary of fund transfers with other branches.
Clearing transactions.
Other Control Returns:
Compliance returns related to statutory/regulatory requirements.
Suspicious transaction reports (if applicable).
Any exception reports highlighting deviations.
Role in Concurrent Audit
Concurrent auditors verify these control returns as part of their audit procedures.
They cross-check branch records with control returns to ensure accuracy and detect errors or fraud.
Helps in maintaining transparency and accountability at branch level.

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