Cash credit account checklist ??

Pl confirm  that you are veryfing  the cash credit  loan account of a  client  company   

If so few points  we can  share  

1)  Verify the recocilliation  with Bank statement  - Ensure that liabity is correctly   stated 

2) Examine all reconcilliation items   -  investigate long pending items / disputed  items 

3)  Latest Sanction / renewal letters  to know the terms of sanctions  - tenure -interest - penalties   stock / receivable  that is hypothicated  - frequency of stock statement - D/P & margins  

4)  Call for copies of stock / receivable audit  report - Inspection report etc to know whether any breach occured resulting in penalty  

5) Expenses such as  processing fees - Interest  etc have been correctly provided on accrual basis  

6) Disclosure in Balance sheet -  under current liabilities -Name of the Bank  ,  Notes on the   nature of security  . guarentee provided  etc 

thanks sir.