{Updated} How to Conduct Concurrent Audit of Banks/ (Bank concurrent audit check list)

 In this article we are going to share about How to do Concurrent Audit of a Bank-How to Conduct Concurrent Audit of Banks Concurrent audit guidelines for banks revisedBank Concurrent Audit

Bank concurrent audit- How to Do?

How to Conduct Concurrent Audit of Banks

The concurrent word itself defines its meaning, the simultaneous means occur at the time. Simultaneous verification means the examination of financial transactions at the time of the occurrence or in parallel to the transaction.

Most new items that have been assigned to the simultaneous verification become terrified when they have to land at the bank, as is the case. How to do this? New and horrendous banking software? Etc. arises. It is normal to be nervous for the first time, but later, everything starts to work smoothly. In my case, such things happened, even if I was out of the station alone. So instead of losing what we do, we can just learn things from there. If we check banks simultaneously very precisely, we can learn a lot of banking knowledge, new banking software, RBI standards and many more. So, for the help of new articles doing the simultaneous audit, I will write this article so that they can derive intellectual benefits.

To conduct the simultaneous audit of banks, we generally need to carefully consider the following:
Concurrent audit guidelines for banks and check list

1. Treasury:

Every morning we will have to check the cash balance of Cash Book of Bank in which all details of the cash balances are written daily and the manager and the cashier authorize. Once a month, we have to perform a physical check of available cash with banks and ATMs (if any) in a surprising way and if there is a lag in the report.

2. KYC policy:

This is the most sensitive and important part of the simultaneous audit. KYC means "Know Your Client", a term used for the customer identification process. This involves making reasonable efforts to determine the true identity of the beneficiary of the account, the source of the Fund, the nature of the client's activity, etc., which helps the bank to manage its risks prudently. The main things we observe in the KYC check are the same and resist addressing. We should be sure that if AOF (account opening form) is properly completed or not. The introducer who presents the new customer to the bank should have maintained his account for at least 6 months without being registered in an inoperative account. In AOF, it is clearly mentioned the documents required to open the bank account. Recently, the RBI has condemned some nationalized banks and other major banks for failing to comply with KYC standards and, therefore, as a competing auditor, we must ensure that compliance with KYCs and irregularities is duly noted In the report. We should also discuss major irregularities with industry officials and look forward to the solution.

3. Loans and Advance Audit:

The most sensitive part of the borrowings and advances of the banking operation and their conformities. To verify newly sanctioned loans and advances, we must ask the Manager of the bank loans for the register of registers and they will provide it to us. The register of documents is only a register kept by the bank for its advances, in which they generally write the name of the party, details of the sanction, documents submitted by the party to the bank, verified by the manager And the branch manager. Here are the key points to check for progress:

Realization of the KYC standards and good functioning of the AOF.
The CIBIL report (Central Information Bureau of India Ltd.) is good or not. The higher scores in the CIBIL report show the increased credibility of this part.
The appropriate documents to sanction the loan are presented by the party or not as a project report, the last years of the state of affairs and the projected declarations if the project is new, then a full projection duly authorized by a chartered accountant or expert. Fields.
If the loan is a personal loan, mention should be made of the purpose of the loan for the RC vehicle loan, ie joint registration with the transport service is required within one month From the date of purchase of the vehicle, a copy of the original invoice is also required.
The details of primary and collateral security colluded with the bank. Load creation with OCR.
The form must be signed by at least one guarantor.
For the CC (Cash Credit) account, the account must present an inventory statement within 7 days of the end of the month in question. And we should check

4. Foreign Exchange Transaction, if any

An FX transaction may be useful in managing the foreign exchange risk associated with importing or exporting goods and services denominated in foreign currencies, investing or borrowing abroad, repatriating profits, converting dividends denominated in foreign currencies or to settle other contractual arrangements in foreign currency.

At the date of the contract, the amount of the contract must be exchanged with your FX supplier at the contract rate, regardless of when the exchange rate is at the time.

How does your FX provider determine your contract rate?

It is the agreed exchange rate at which the currency pair will be exchanged on the due date. Your currency provider determines the contract rate taking into account several factors, including:

  • The currency pair and the time zone in which you choose to trade
  • The due date set by you
  • Interbank Cash Rates
  • The amount of the contract and the ability of your currency provider to exchange small amounts in the interbank market
  • Market volatility
  • Interbank rates of the currency pair countries.

4. Advances

Important area to check
1) Non-submission of stock status
2) Inadequate / No Stock Insurance
3) CC accounts payable for review at the end of the month
4) Branch Manager Visit to HNW Customer Square
5) Case of withdrawal in CC / OD accounts
(6) Withdrawal in Term Accounts
7) Irregularities / Defects in the documentation / Non-compliance with the Conditions - this requires by checking any beginning of KYC document until the insurance of the loan amount and the payment of the deposit in time
8) NPA monthly position
9) List of potential NPAs

6. Deposit

Other than KYC, we must check all transactions beyond Rs 10 Lakh objective is to identify any abnormal transaction.
Balance in the deposit account.

I know that I cover most of the important areas that we need to look at when the bank is checked at the same time, but this list is not exclusive, but it is inclusive because I discussed at the request of this publication that the audit Simultaneous bank is like internal audit and as we know Internal audit is like the ocean that has no limit.

I hope you will like this information on the simultaneous audit of the bank and this will help you in your mission

Check the list of items to be checked in the aforementioned coverage areas

For a new account

1) Name of account holder

2) Backup Type / Current / Hour / Advance

3) A / c no

4) A copy of the verified identity

5) A copy of proof of residential address verified

6) Verification of the signature of the introducer

7) Whether or not the letter of thanks is sent to the introducer and to a new applicant.

8) Signature of authorized Signing Officer

9) Check Certificate of Incorporation / MOA / AOA, Board Resolution, Copy of NAP, Power of Attorney

10) Cross-checking a / c opening forms with a / c opened in the system

11) Make sure that the photograph of the a / c bracket is obtained and fixed or stapled on the air conditioning opening form.

A / C No.

Name of the A / C holder

PAN / Form 60

Type of account


Detail of the Nomination

Sign of candidates

Sign and stamp of the relevant agent

Details of the introducer

Letter of thanks

Digitization of the photo and signature on the same day


Residential Evidence

Complete KYC Certification

Imp Notes

For a transaction Records / records must be retained for all cash transactions of value greater than Rs. 10 lakes or Its equivalent in foreign currency.Cash transaction records must be retained for 10 years from the date of termination.
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