MOC in bank audit, online Income Recognition & Asset Classification norms

Key Concepts

• MOC (Memorandum of Changes): A document issued by auditors to the bank management during an audit to highlight discrepancies or necessary adjustments in the bank's books of accounts before finalizing the financial statements.

• IRAC Norms: Guidelines mandated by the Reserve Bank of India (RBI) that banks must follow to classify their assets (loans, advances, etc.) as Standard, Sub-standard, Doubtful, or Loss assets, which determines the provisioning requirements.

• Finacle X: A modern core banking solution used by many banks to manage accounts, transactions, and reporting. The transition to such systems often changes how auditors extract data for audit procedures.