Bank Auditing

What is Auditing in a Bank?

Bank auditing refers to the systematic examination of a bank’s financial statements, operations, and compliance with regulatory standards. It ensures that:

• Financial reporting is accurate and transparent

• Risks are identified and effectively managed

• All transactions are authentically recorded and compliant with statutory norms

Bank audits may be conducted under statutory requirements, internal or concurrent mandates, or special inspections as per the Reserve Bank of India (RBI) or Institute of Chartered Accountants of India (ICAI) guidelines.

✅ Our Bank Auditing Services Include:

1. Statutory / Required Bank Audit

• Conducted in accordance with RBI guidelines and ICAI auditing standards

• Branch-level verification of books, ledgers, and operational records

• Evaluation of:

  • NPA (Non-Performing Asset) classification & provisioning

  • KYC / AML compliance

  • Capital adequacy and risk management controls

• Preparation of:

  • Statutory Audit Report

  • LFAR (Long Form Audit Report)

2. Concurrent Audit

• Daily, weekly, or monthly audit of key areas in high-risk branches

• Real-time monitoring of:

  • Cash transactions

  • Loans and advances

  • Forex and trade finance activities

• Immediate flagging of irregularities, frauds, or compliance breaches

• Timely reporting to bank management for corrective action

3. Revenue Audit

• Verification of:

  • Interest income

  • Fee-based income

  • Charges and commissions

• Ensures accurate income recognition and prevents revenue leakage

• Review of application of interest rates, processing fees, and other charges

4. Stock & Cash Verification

• Surprise cash counts and vault audits

• Physical verification of pledged stock, collateral securities, and inventory

• Reconciliation with internal records and bank registers

5. Credit Audit

• Examination of:

  • Credit appraisal and disbursal processes

  • Loan documentation and sanction conditions

• Review of large accounts and early warning signals

• Identification of risk exposures, irregularities, and policy deviations

6. Bank Information System (IS) Audit

• Security audit of core banking systems, net banking platforms, and IT infrastructure

• Evaluation of:

  • Cybersecurity measures

  • Access controls

  • Data backup & recovery systems

• Compliance with RBI’s Cyber Security Framework and IT governance protocols