Bank audit in current scenario

CA SURENDRA KUMAR RAKHECHA (Practising CA at Surat) (26248 Points)

22 February 2013  

BANK AUDIT  IN CURRENT SCENARIO

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 Approx 30 years back; I remember my articleship days at Calcutta

 when I visited a Bank for statutory audit with our Audit Team.

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 After conducting the audit; the Team Head happily reported to the Boss :

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 “We have checked 80% of advances (Total advances Rs. 2 crores) and all is ok.”

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 The boss raised his eye brows and asked :

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 What about rest of Rs. 40 Lacs of advances?

 Are you sure these are not bad debts?