Audit of loan documentation in banks

Hello, I would like to know that while conducting bank audit, at the time of loan documentation whether we should check that the quotqtion provided for purchase of asset suppose machinery is fair or not i.e. it has not been inflated and if yes how should we check it. Eg. There is a machinery costing Rs.35 lacs so as per Bank norms 80% of this amount can be financed but the bank manager and the client under an arrangement agree to get inflated quotations of rupees 45 lacs so that its 80% amounting to Rs.36 lacs can be financed Regards, Sumit Agarwal