Bank Audit | A Practical Guide for Bank Auditors

This book is a practical & sequential guide for Bank Auditors for on-field issues. It guides the readers through the entire process of bank audits, supplemented with audit checklists. The objective of this book is to be solution-oriented to the practical pain points of the audit team.

This book will be helpful for Statutory auditors of bank branches, bankers, articled assistants, etc.

The Present Publication is the 6th Edition and has been amended upto 25th February 2023. This book is authored by CA Anil K. Saxena, with the following noteworthy features:

[Audit Check Lists & Procedures based on Authors’ Experience] of over four decades to ensure that even a first-timer could efficiently carry out and document any banking assignment with ease together with complying with the relevant ‘tech­nical standards’
[Practical Tips, Documentation Guidelines & Easy to Use Templates] are provided in this book
[Practical Overview for Identification/Provisioning of NPAs] that will help audit teams take care of the most important aspect of any bank branch audit is given in this book
[Guidance on Agriculture Loans with Practical Templates] has been included in this book
[FAQs Based on Actual Practical Issues] covering the entire gamut of Branch Audits, are included in this book
[Complete Guidance on Finacle Transactions Codes] are included in this book
[Practical Examples for Complex Audit Procedures] has been included in this book to help audit teams execute and understand the audit procedures
[Regulatory Changes Made During the Year] has been incorporated to ensure that the audit teams are updated with the latest regulations
[Comprehensive Guidance] covering the following points:
Audit Report
Long Form Audit Report (LFAR)
Certification on ALM, Ghosh & Jilani Committee Recommendations
Stock Audits
The structure of the book is as follows:

The Book has 19 Steps covering various stages of a bank branch audit
The book has 12 Appendix containing 11 templates which audit teams can use during their audits, including a comprehensive ‘Audit Programme’ and also a ‘Pre Sign Off Checklist’
Footnotes at the end of each Audit Step containing important information are marked for the benefit of the readers
Footnotes at the end of each Audit Step containing important documentation advisory are also marked for the benefit of the readers
Each step has been named and styled in a manner which would help the audit teams to understand the content, thereof
Step 1 is styled as ‘Appointment Letter Received – What Next? This guides the audit teams as to what they need to do after receiving the appointment letter
Steps 2 and Steps 3 not only discuss the importance of planning for the bank branch audit, but also give practical guidance along with necessary templates for execution and documentation
Step 4 takes the practical guidance to the readers a step ahead by asking Reached the Branch – What do I do? This step discusses exactly what members need to do on reaching the branch
All other steps in the book are similarly structured to help readers and audit teams not only understand the methodology but also execute the entire assignment with ease and perfection
The contents of the book are as follows:
Step 1 – Appointment letter Received – What next?
Step 2 – Your backbone – Strong Planning
Step 3 – Back Office – Start Preparing
Step 4 – Reached the Branch – What do I do?
Step 5 – Balance Sheet Review
Step 6 – Statement of Profit & Loss
Step 7 – Identification of NPAs | A Practical Overview
Step 8 – Non-Performing Advances | Assessment of Provisions
Step 9 – Advances | Resolution of Stressed Assets
Step 10 – Advances | Restructuring Demystified
Step 11 – Frequently Asked Questions (FAQs)
Step 12 – Important Regulatory Changes during the year | RBI Circulars Summary and Highlights
Step 13 – Housing Loans
Step 14 – Audit of Agricultural Advances | Made Easy!!
Step 15 – Restructuring – Natural Calamities
Step 16 – IS Audit – Finacle | Guidance
Step 17 – Miscellaneous Guidance on Other Matters
Step 18 – Stock Audits: Guidance
Step 19 – Asset Classification: Summary of RBI Guidelines