Practical Workbook for Bank Branch Auditors

This practical workbook, i.e. work programme cum audit notebook, is a one-stop reference for bank branch auditors providing a systematic audit approach and procedures. Overall, the aim of the workbook has been to provide an efficient and effective approach for accomplishing branch auditing, simultaneously documenting the audit work.

This workbook contains a five-staged approach:

Acceptance of Audit
Planning the Audit
Conducting the Preliminary Audit
Conducting the Final Audit
Reporting the Audit
In each stage, the audit approach and procedures have been suggested in accordance with the RBI Norms and ICAI Standards on auditing.

This book is helpful for branch auditors in accomplishing their branch audit more purposefully & bringing more comfort to the Statutory Central Auditors, Boards and Management.

The Present Publication is the 7th Edition & amended up to 24th February 2023. This book is authored by CA Ishwar Chandra, with the following noteworthy features:

[RBI’s Extant Notifications/Circulars & Audit Procedures] each chapter has been divided into two paragraphs. In the first paragraph, RBI’s extant notifications /circulars have been discussed to help acquaint them with relevant legal/regulatory guidelines. While in the next section, audit procedures have been suggested
[References of RBI Notifications & ICAI Standards on Auditing] have been given below the audit procedures
[Audit Hints for Technology Environment of Banks], i.e., Finacle, B@NCS and Flexcube have been given
[LFAR Procedures] contain ‘what’ and ‘how’ to evaluate and ‘how’ to report. For reporting help, audit comments have been illustrated
[CBS Environment] An entire chapter has been devoted to the useful system-generated reports for branch auditing in CBS environments, along with relevant commands/shortcuts and menus/navigations
[Examples for Independent Bank Branch Auditors’ Report] for forming different forms of audit opinions and memorandum of changes (MOCs) have been suggested
[SBA Formats] To collect and evaluate the information in each stage, audit templates/SBA Formats have been suggested
The structure of the book
In the initial chapters, pre-acceptance, post-acceptance and planning procedures are given
Subsequent chapters devoted to the bank branch auditing, which are as follows:
Audit of New Advances, including Audit of Credit Monitoring
Audit of Special Mention Accounts (SMAs)
Audit of IRACP and Resolution of Stressed Assets
Audit of Financial Statements
LFAR Procedures
Audit Procedures of Capital Adequacy Norms
Audit Procedures for Special-purpose Certifications
The book includes two appendices, Appendix – A and Appendix – B
In Appendix – A (24 Nos.), audit templates (SBA Formats) have been provided to help ‘seek’ and ‘obtain’ information and to evaluate the information obtained.
In Appendix – B, various notifications (e.g. RBI Circulars and ICAI Standards) are appended for quick reference of branch auditors
The contents of the book are as follows:
Introduction to Audit of Financial Statements
Pre-Acceptance Procedures
Post-Acceptance Procedures
Planning Considerations
CBS Environment | Useful System-Generated Reports
Offsite Planning
Onsite Planning
Performing Preliminary (Routine) Audit Procedures
Audit of New Advances
Audit of Credit Monitoring
Audit of Special Mention Accounts (SMA)
Audit of Income Recognition and Asset Classification
Audit of Provisioning
Audit of Resolution of Stressed Assets
Performing General Ledgers (GL) and Profit & Loss (PL) Audit Procedures
Long Form Audit Reporting (LFAR) Procedures
Audit of Capital Adequacy
Special-Purpose Certification Procedures
Issuing Independent Branch Auditors’ Report