Taxmann's Practical Workbook for Bank Branch Auditors

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About the Author Born on 10th February, 1969, commerce graduate from St. John’s College Agra, Ishwar Chandra is a Fellow Member of The Institute of Chartered Accountants of India (ICAI). He is a Chartered Accountant practicing since 1993.

He holds DISA (ICAI) and Certificate in IFRS and Certificate in Concurrent Audit of Banks from ICAI. He holds CISA from Information Systems Audit & Control CA. ISHWAR CHANDRA Association (ISACA) USA since 2004.

Mainly practicing auditing, his major work experience includes Concurrent Audit, IS Audit, Stock Audit, Income & Expenditure Audit and External Audit of various Commercial and Regional Rural Banks and Internal Audit and other assignments of PSUs/Govt. Deptts.

He is an empanelled faculty with Internal Audit Standards Board of ICAI for ‘Certificate Course in Concurrent Audit of Banks’, and is also empanelled with IT Committee as Faculty for post-qualification diploma course in ISA. His approach and procedures articles on auditing of banks have been immensely published in ‘The Chartered Accountant Journal of ICAI. He is author of Five C’s of IT Policy published in ‘Internal Auditor’ of The Institute of Internal Auditors, (USA). He has been one of the Expert Reviewers of ISACA’s CISA Review Manuals and is a contributor on auditing to ISACA. He has participated in International Federation of Accountants (IFAC) consultation paper ‘Improving Auditor Reporting’. He has delivered lectures I-5

R O H T U A E H T T U O B A

I-6

on auditing of banks at ICAI seminars organized by CIRC, SIRC and NIRC branches/study circle and for GMCS course at Agra.

In his 28 years of professional career, he has been associated with various boards/committees of ICAI. He has been a member of one of the Financial Reporting Review Group constituted

by ICAI and has acted as lead reviewer. He is associated as Technical Reviewer with Financial Reporting Review Board, as Peer Reviewer with Peer Review Board and as Resource Person with CFMIP of ICAI. His academic associations include the Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India. He is a founder trustee of Shri Rajendra Prasad Munni Devi Agrawal Memorial Trust, a registered public charitable trust.

6 1 0 2 l a u n a M s e r u d e c o r P t i d u A t n e r r u c n o C k n a B

OTHER BOOKS BY THE SAME AUTHOR

‘ Publications Pvt. Ltd.)

’

(Taxmann

Articles by the same author Published in “The Chartered Accountant” Journal of ICAI 3 1 0 2 e n u J , 2 1 . o N 1 6 . l o V 6 , 1 0 2 h c r a M , 9 . o N 4 6 . l o V ,

,

0 1 0 2 h c r a M , 9 . o N 8 5 . l o V ,

6 5 . l o V ,

. l o V

‘Planning the Statutory Branch Audit: An Approach’, 8 0 0 2 h c r a M , 9 . o N 6 5

7 0 0 2 h c r a M , 9 . o N 5 5 . l o V

‘Auditing in Core-Banking Environment: Some Special Considerations’,

, 3 . o N 5 5 . l o V ,

‘KYC & Anti Money Laundering Measures’ .

6 0 0 2 r e b m e t p e S

u

8 0 0 2 y a M , 1 1 . o N

u

‘Improving Risk Management and Compliance’

u

‘Conducting Statutory Branch Audit in CBS Environment: An Approach’

u

‘Statutory Bank Branch Audit: Strengthening Audit Plan’ 2 1 0 2 h c r a M , 9 . o N 1 6 . l o V

u

u

‘Essentials of Report Writing’

u

‘What Every Statutory Branch Auditor of a Bank Should Do’

u

Preface to the Fifth Edition I am grateful to Taxmann for bringing out four editions of the Practical Workbook for Bank Statutory Branch Auditors timely. Now, it gives me immense happiness to present the Fifth comprehensively revised edition of the Workbook for Branch Auditors.

In last one year, COVID-19 unprecedented pandemic affected the lives and business adversely worldwide. It affected the business across the economies and sectors. Particularly, it had several immediate adverse effects on MSME sector that led the Government to come out with several regulatory relief packages and concessions under Atmanirbhar Bharat. To overcome this COVID-19 stress, RBI came out with various announcements relevant for audits of financial statements of the banks. Based on such critical changes, I have revised this edition thoroughly.

In this edition, two new Chapters, Chapter 11 ‘Audit of Special Mention Accounts (SMA)’ and Chapter 13 ‘Audit of Provisioning’ have been added. Chapter 5 ‘CBS Environment: Useful System Generated Reports’ has been thoroughly revised and CBS reports helpful for auditors and generally available in Finacle 10, B@NCS and Flexcube have been added. Chapters ‘Audit of Income Recognition and Asset Classification (IRAC)’, ‘Audit of Restructurings’ and ‘Performing General Ledger and Profit & Loss Audit’ have been revised with reference to RBI’s extant guidelines and ICAI Standards on Auditing.

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N O I T I D E H T F I F O T E C A F E R P

I-8

In September 2020, RBI issued a revised LFAR Review making it current and more informative. Hence, Chapter 16 ‘LFAR Procedures’ has been revised accordingly. To seek information from banks’ Head Office and from the branches, various formats suggested to collect the information have been modified based upon such new audit requirements.

Of course, I have been able to use several contents of my another book ‘Bank Concurrent Audit Procedures Manual’.

However, to confine myself with statutory branch auditing, procedures on auditing of operations have been skipped. As, it is a reference manual cum audit note book, I have made all possible efforts to make the workbook a one stop reference for branch auditors and to keep the contents complete and current. Yet, human errors/omissions are quite natural and I am confident readers are kind enough to ignore. As it is a live document, auditors are suggested to refer, extant updates, if any, while auditing.

a r d n a h C r a w h s I .

A C

All constructive feedback/comments from the auditors are most welcome and will be gratefully acknowledged. While revising the edition, I have referred several sources including ICAI Guidance Note on audit of banks, RBI notifications and others. I am grateful to all such sources. I am thankful to Shri D K Agrawal, Ex.-Chief Manager (BOI), my friend CA Suresh Advani and Shri M Venkat Subramanian, AGM, Indian Bank for reviewing the revised draft of the workbook. Thanks to CA. Kapil Goyal and Shri Jitendra Goyal for assistance in preparing the revised draft. My deepest thanks go to my wife Smt. Reena Agarwal, my daughter Miss Pranchal and my son Master Sujay for their love, support and patience.

i r u p r e d n I , 1 / 7 3 A , n a w a h B a r d n e j a R 5 0 0 2 8 2 A R G A , a r g A w e N 8 9 3 7 0 3 7 3 8 9 , 6 7 1 0 2 5 2 2 6 5 0 m o c . l i a m f f i d e r @ 2 0 0 1 c _ r a w h s i : l i a m E

March 2021

Acknowledgement First of all, I acknowledge the grace of Almighty that made it possible to me to write the book. I want to record my sincere thanks to my friend CA Suresh Advani who encouraged me to write the workbook and to keep my morale high. I want to record my gratitude to CA. Amarjit Chopra, Past President, ICAI and Member, Quality Review Board and Statutory Central Auditor, State Bank of India for sparing his valuable time in reviewing the draft and suggesting improvements. I am grateful to Shri B V Upadhye, Ex. General Manager, Bank of India who vetted the outline of the book. I must be sincerely grateful to Shri D K Agra­wal, Chief Manager, Bank of India whose help has been ever available to me throughout the book and for putting his valuable time and efforts in reviewing the draft thoroughly.

I wish to record my gratitude to CA. Surinder K Bansal and CA (Dr.) D S Rawat, Statutory Central Auditors, State Bank of India, CA. U N Marwah and Shri M. Venkat Subramaniam, AGM, Indian Bank for sparing their valuable time in reviewing the draft and suggesting improvements.

I am thankful for the assistance provided by Smt. Reena Agarwal, CA. Kapil Goyal and Shri Jitendra Goyal in preparing the draft. I am thankful to Taxmann for reposing their trust in me for publishing the work and coming out with the publication timely.

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T N E M E G D E L W O N K C A

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During writing the book, I have referred several sources including ICAI Guidance Note on Audit of Banks, RBI and IBA notifications, several websites and others. I am grateful to all those sources.

Finally, my deepest thanks go to my wife Smt. Reena Agrawal B.Ed., my daughter Miss Pranchal and my son Master Sujay for their love, support and patience.

CA. ISHWAR CHANDRA

How to use this Workbook m u c

I intend to write this Workbook as Audit Work ProgrammeAudit Note Book. To use this book in an effective manner, I have following tips to recommend: - First be acquaint with relevant background information, Statutory Provisions, RBI guidelines and ICAI Standards on Auditing.

- For the sake of convenience and to move in a systematic manner, entire branch audit work has been segregated into five stages. For each stage, ready to use formats, to save auditor’s time and creating audit documentation simultaneously, have been suggested Use these formats effectively.

- Keep the Checklist of tentative audit requirements (given in Chapter 5) handy and have continuous rigorous follow up with the branch management and controllers to collect the information.

- Document the communication made with the branch management and controllers. While communicating the branch, mark a copy to the controllers also.

- Keep tab on audit progress and time budget.

- Note down the audit observations in the workbook itself and attach additional sheets, if needed.

. e . i

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K O O B K R O W

S I H T E S U O T W O H

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- Important notes to auditors are indicated in boxes. Read these carefully.

I believe this workbook would help minimize the chances of lapses and omissions and would help reduce the audit risk, besides documenting the audit work simultaneously.

Overall, workbook would help auditors accomplishing their branch audits in a more purposeful manner, eventually giving more comfort to the Statutory Central Auditors, Boards and Management.

CA. Ishwar Chandra

Chapter -heads PAGE About the Author

I-5

Preface to Fifth Edition

I-7

Acknowledgement

I-9

How to use this workbook

I-11

Contents

I-15 :

2 R E T P A H C

: : : :

3 R E T P A H C

1 R E T P A H C

INTRODUCTION TO AUDIT OF FINANCIAL STATEMENTS

1

4 R E T P A H C 5 R E T P A H C 7 R E T P A H C 8 R E T P A H C

POST-ACCEPTANCE PROCEDURES

15

PLANNING CONSIDERATIONS

17

CBS ENVIRONMENT : USEFUL SYSTEM GENERATED REPORTS

26

OFFSITE PLANNING

34

ONSITE PLANNING

38

PERFORMING PRELIMINARY (ROUTINE) AUDIT PROCEDURES

42

AUDIT OF NEW ADVANCES

52

AUDIT OF CREDIT MONITORING

77

AUDIT OF SPECIAL MENTION ACCOUNTS (SMA)

98

: : 0 1 R E T P A H C

9 R E T P A H C

11

: : :

6 R E T P A H C

PRE-ACCEPTANCE PROCEDURES

: 1 1 R E T P A H C : 2 1 R E T P A H C

104

AUDIT OF PROVISIONING

129

AUDIT OF RESTRUCTURING OF ADVANCES

138

PERFORMING GENERAL LEDGER (GL) AND PROFIT & LOSS (PL) AUDIT PROCEDURES

154

LONG FORM AUDIT REPORTING (LFAR) PROCEDURES

165

TAX AUDIT REPORTING PROCEDURES

226

: 3 1 R E T P A H C

AUDIT OF INCOME RECOGNITION AND ASSET CLASSIFICATION

: 4 1 R E T P A H C : 5 1 R E T P A H C : 6 1 R E T P A H C : 7 1 R E T P A H C

I-13

S D A E H R E T P A H C

I-14

: 8 1 R E T P A H C

BASEL VERIFICATION PROCEDURES

236

SPECIAL-PURPOSE CERTIFICATION PROCEDURES

242

ISSUING INDEPENDENT AUDITOR’S REPORT

249

: 9 1 R E T P A H C : 0 2 R E T P A H C APPENDICES

PAGE

262

Contents

PAGE About the Author

I-5 Preface to Fifth Edition

I-7 Acknowledgement

I-9 How to use this workbook

I-11 Chapter-heads

I-13

1

1 1 2 3

1.1.6 1.2 1.2.1 1.2.2 1.2.3

4 4 5 5 6 6

1.3

6

1.1.1 1.1.2 1.1.3 1.1.4 1.1.5

I-15

1 1.1

1.3.1

6

1.3.2

7

1.3.3

7

1.3.4

8

9 4

3 9 e 1 1

c 0 , t t y n 2 n c r a , e A o f t l c a t o m s y 3 n u b t A tt 1 n o e a n c t 0 s e a i e et t a 2 e p h a t ps m t , i l s m n s t e s u e d c a d e h i o g t r n A p u a M C e t a t s m a nn R l S g i r e g i a

o r t n F ks n i r l o i g i i i n C t r a r o n e k t d i t t e a r os i i c i r n

n t u

p o k y d y p i n d o a a A p p wa n n n m s u a a u M B a s e el e a n A A n e t f k i p o t R men i a B p a Rs C e F n a h u f m o h n f a a lo o o r t a m n D f t t i o b Fr o f o i o iC y r s s f t s c d l e noa t o e n C o C s d n f n n i n n v n g e o i s n o g e o i d s o aa o a sc o h i i n i tr i u e t s n r i i c t i t s S c i t v s a oe i k k i i a s i k v t f F t g Ai i r A t t e o n u n v h m e i i o n c o l d f t g n D c r a D a r e m o b n i w a j um e t n P B d B P i e R O a n s a o e f b s L B n a y l e a s y a a s s myc m o O m f ’ ’ r e ero f r t en u B r f n r r a s o n l s o o o q e o e l c o o i e r r t t t t r t e t t t F o a T r le e d u u i e s i i i r u p o i w n e d t t d d d w e y b t f d y r v a a a u t a e h mt u u u n u u o r e u t i t o P O K n T b S s S A P A S A A Es a I t t n h a u l c

u o n g c a e c r R B A

INTRODUCTION TO AUDIT OF FINANCIAL STATEMENTS

S T N E T N O C

I-16

E G A P

PRE-ACCEPTANCE PROCEDURES

2.3.1

13 2.3.2

13

s a n o i t i s s m o p r e e T r h o t t r t n e i g e t t d n i u m e t A e L p g t e s a n c u c g e o a n m i v E e r e o t r g f i P a d y g u t e i n A l h i E t b n i h t o i g t

i d i r t u l e e n f r w f e A eo g ht n o m g i t i e e n i gd t h e u nu a t r s c a g i i g A s n y n n I i r i a t o u p t m t r u e e m t c ca o c s t C A As

POST-ACCEPTANCE PROCEDURES

n o i t a m r o d f e n r I a e p c e n r e P r e h f c e n R a g r n B i g t c n i e t l t l e o C G

PLANNING CONSIDERATIONS

17

4.1.2

17

4.2

18

18 4.3.2

19

20

l a

n d i n a r n o e ’ t a n i t t i n a y a s e t M i n m e m t o c f r n

i e ) o o n t E t 2 f a a a k 1 n l e t d ( sh u I i S i 3 gu e 4 l Rt eG h a 1 g e i R t n I c h n i g A t n d o d n i a n C g n i t t n I a n c a n i : i t e ’ s F s e s s s s wt r f e m r e n ae o sd e u L s

t d ) c n i A s n fm o d A

o e ’ u u dU Dd t S A na nh s ( :e n t ag oS n n o g n i oi t gu n a i a i o l a t i t nr t a t ’ r i a g i a b i t h e y r c n d n mO e t f dn i i u e i t n t a 3 r ‘ d s A n n o i m n n d 1 f n s n n i 0 n n a een oF l d m a 2 I o o s o P Cf I r ’ ‘ e , gt C n s ‘ ‘t i t o 0 5 0 v h n d c o r a d i 0 1t 5i i t n 2 g u A k t a 3 3s u E d a s s eo a l d e e s Au r u n A Ait S F i S‘ SA g a S SMi n t e a R S p I m I A B C o R I C

18 4.3

s d r a d g n n a i t t i S d I u A A C n n I o o r i e t d a d r t n a n u d e n s m t a n t u S e c o m e D h e t r n t i i r o e u d i q t u d e a n I A R t u f A : n e s n C o t o m n n I i u e o f i t o a c t t o m a 0 n e v e D r3 r e m t i2 s u i ) u d qA e c u eS r P o A R( D t i d u A

17 4.1

4.1.1

4.3.1

4.3.3

12 2.3

15 3.2

12 2.2

15 3.1

11 2.1

10 1.4.3

9 1.4.2

9 1.4.1

9 1.4

2

3

4

E G A P

n i s e d c u n a e c a r n v Fa d od A t i

) d gu g nG n n i a i t I l a A p s l n e C m e a R I a o c : g ’ fi S n ss L f e t t l i i O f n i t o p d i e l d i m u m g a b i e e A a n i s t l S 0 H na 3 t p ot t i m a pS 5 d a sl A u h e a S t i Ri S A ( c r f w o sn s o f ’ n a t r l on o w s a i i t e e n t F i o i a d D i v t uf r r o e a y s l At l d e r t v ‘ i i e a n 0d s O d u m i 4u n f s o r 2A o e nc o i oc An C r Sa g B CA N n s i r l e p t t m a a M S

CBS ENVIRONMENT : USEFUL SYSTEM GENERATED REPORTS

e b u c x e l fl a i d c r n e a m S C m N o C @ r B o , t e c l e c S s a t n r c i fi o l p b n e u i R P e l e y b b b a l u i c a n d s x e t v o s r e i a o u t l c F y p l u e e d l r a d a r n r t o w 0 a e n r t n 1 S e t f n e e o m I C l s g c n f sk s N a o e Sn t n @ r i B r i a r i o F B CB p B v n e E r S S B B C C

OFFSITE PLANNING

ONSITE PLANNING

38

/ s

d g u n a i r s

F s d e l r a n i D a t n s w e n t o o o d i t P n c i g n W a n i r l S a e d i d t e i n s h e s n t u o o C s P R l f f :o mr o o st s s i n n n c o i o o t C i i p t t ef a a c ko c i i se d d ld n I n a i I nr or g g e i n n s s v i i s y y t O e i f f s i i f t t t o o n n rn e p e ee pm d I dD ge I ng i y a l n p pa AM

38

7.1.1

7.1.2

37

s m l a e c t i s t y i r S C l / o r r a t l

n e u o r g C i a e l n r a r n I n o / r i e e t g s t r e n a I u L d Q n n a A o g : s n n n w o o e i i i t i t t v n a a e u m m R o r r c o l o c f a s f h c A n n s n i c t o n I n e I y o g g h s s l a t i i n n e a t r r i i c a n a t B g t l n c n c A p e e i a e e r l l y m r v h d l l r t n o d o o o g a C a C C CA n t n s i i r m w e

i l o d e n n r K U P

38

7.1

34 34 34 35 36 37

6.1 6.2 6.2.1 6.3 6.3.1 6.3.2 6.3.3

27 27 28 31 5.2 5.2.1 5.2.2

24 4.5

26 26 5.1 5.1.1 5.1.2

24 4.4.2

23 4.4.1

21 4.3.4

23 4.4

S T N E T N O C

I-17

5

6

7

S T N E T N O C

E G A P

PERFORMING PRELIMINARY (ROUTINE) AUDIT PROCEDURES

8.1.3

44 8.1.4

45 8.1.5

46 8.1.6

47

48 8.2.1

48 8.2.2

50

f y o m

sc u ) eP d h m n e mC c es n t oA n i a ti s r cR a s t t o nI r n n e I B e o ( e m f g e hC m e o n h S: e M r t e i t t n a e n c a s f c e ’ u n o t o r i Y n S e o s a s r as c i l e e l e v c a i u Y a h i o t A i c Bo dr v i n s

/ P C u i v A s t a o s e n N c d e f n i r o I o A c i n v

P i F t nf e a g d t g a a r n i n f P i o n n d l i l o a i a i o h u t s c f i t o b a c

A o t i s n n l h u Aa d P dt o o s N o rc u t ) C a c c k o fi s i V A e e eh f e t c f i C f n ht s e a i R s o e r f o i s c h l e w t o E L a i p n d r M f u C f l r G o u i e n ( o s h i a y a r m dC t e s e R g a e t c t a r e g V S ee nY n l i c u gg g i s n e e o i e c t s d nn n r i t a r n i c n n

A e i s n i c ya y pek n i i P , o s c r a t t o fh f i i n y n c r rC r mre l u u r o o e P ef e ouh a o o a i t C R i nn e Vo V CCC B R R i s n mgm i

t o ic l u r e o eo r R PRN

8.2

g n i n e e r G r e v E

l g a i n t i n n e n t a o l P P f n s o i e i st k nl i r oc i o i t a W a cF ’ s i t r d i o d ne t I i gr d nC u i k A y a f l i e a t n n W r e e f do t I n I g n i s U

43 8.1.2

AUDIT OF NEW ADVANCES

9.2.1

52

9.2.2

53

9.2.3

56

9.2.4

57

9.2.5

58

9.2.6

59

9.2.7

59

9.2.8

61

) c o h ) d s n A a / o s s L e c e x g s a n s E g a t / t o n E r L e o U r m s M A t o e n ( g D t s e c / e e n a m D i S r t r e O r g y A e s s t T t n p n i ( n g a r o a s u n r o r o s i e i r o P i k L n r t c t i a P n A c l l o s i a m a A d n c r L n B u r i a a s u e i e F t g a e t g r l l r v n l a E u u p i o o a i d c s s n M n e t e u a i u l n k r s o c o S u o i a a o t o g c r A H M M C T C L u p d t o i r d t u n A I

52 9.2

42 8.1.1

52 9.1

42 8.1

39 7.1.3

40 7.2

I-18

8

9

E G A P

9.2.9

62 9.2.10

63 9.2.11

64 9.2.12

65 9.2.13

65 9.2.14

66 9.2.15

69 9.2.16

70 9.2.17

71 9.2.18

82

10.1.2

79

80

10.1.3

82

10.1.5

10.2

s f e o e t r n e t a t r e a L u r G e s f d t n s o n t u n e n a m . o s e l c l a t m i L n e B s r y f t i a f P f O s

a o P g V o t r n g S I p e d i / n t e v i n C d ) n l D i a

t ) G n u n - S S a B d C o u N / c o m d / s ( e L s ( k r s c r l P o i s t o e o i e I D i t e v d T G L c t / D n e e e n s t t t r s s n s a I r s / ) a n n n i r s C a nC o i i i D a e f h oL e i a a a o l u c t o t g g g ( a r t n e a G s a a s i u t l t a r i c r e k P o n n n n i d t a n ge h a a a a l e t l e o o o o a u e r i V L L L L B G L B NC

AUDIT OF CREDIT MONITORING

81

10.2.1

82

10.2.2

85

10.2.3

86

86

89

10.2.6

91

10.2.7

91

l s a t n e

s o g i s t n t i A

n i l : d a er t d o d n n m t e

/ i A o u

s en d s i o s y c t t f r e o i

e c a b o o e k g d r t c M t h n t t

g s d S ) o A S n d a A l yyR a d e f B l u f m A l P F r o o of m a h e Q e / ro r t t d ) t e n P h ( t c F n r e L r t o f n t i a o l R i r u e o O u u t a d o M o t T i q u d m n t p d ( l ye /Qe e n n o o t s s R d e i a e r C t s i t l s ) i t nR g i n e : /d s ) o eae r m s S R bu r a q n A P a c i n m)n e h L F : r te ou W w o nR F i R s s e D a C E r t t d u O r f o ( a e f ( s a m r S k od t o e r s ue v e s r r a w i r cn t l S Mo O p t o r g a n o ca o i s(r f r B u Fr w As y On n t i u a r g r : o r b e d e e s n t i o o c e ea P c a ro v S

s t m ri e e B ) r c t i / D e h D t w S v

A o a g d a t ) A t s a p l l l o p F r e n R f i u i i F u u g r g d e u o kg R S m e n A n v o R a a n M oi ( f l l f e /n pn e e o/ r n

i i t g a s u s Q o i e e o n s s n n a a R o T s i g e e t p r ( t o r D D i i o o / a c W o n l oi i n u r Be v t t i s l / u s c l a s s n C u r e lti r F i r u yo u d kpr e s e o a c n d u c v e v e O c l f f n e p n e s d p v c pv c l r l o u o o o r s x i c n o e i d ui ac i n i ne n r r r t t o S E SD EA W A P WDP NP R AU r oR I c u p d t i o d r t u n A I

77

10.1.1

10.1.4

10.2.4

10.2.5

75

77

10.1

S T N E T N O C

I-19

10

S T N E T N O C

E G A P

AUDIT OF SPECIAL MENTION ACCOUNTS (SMA)

AUDIT OF INCOME RECOGNITION AND ASSET CLASSIFICATION

105

12.1.4

106

12.1.5

108

109

12.1.7

110

12.1.8

111

12.2

111

112

12.2.2

118

12.2.3

120

12.2.4

121

12.2.5

122

. c t n e o s i

t P a D V c ’ s I O i I f /

i B s d

e s s P s n R v A t i a a V t : P e l s c ) s C K N n s e s t , t f a A s s f b e o a C E s , e L n s S d D f A l o e o N i a i k t r f r t i , o i o s n n u s t o e g f t s a i g l B s s a u mt on l e o a / c

i c C eD e d n p s n i i r e r k e l s Ro i t r g c e t i D u n a s n o d A e ql i u i t u m eu mv f u S o o r Rn oo c G o

r t c e a n s s c s -r / i o c s T n n nP s A

D i d t G I n i d t o e t ) a s / i n n i a l n L nn t n

g p n d o u ed e s a T e i g a i a e A o mn v L a s c c o ( n t ( s s r e a i n in o L g l a f s a c i o p r t g e g i i a l i m i n e r h e s D n k e g a r t

d s a P s c s i c R c ni a d n s u l e -c e o r n l ai i a a e t e r n l e c l u u i d a r o d B M c C s L P a mf u n r a u i i m G C t h t es c a e f r u m s i d hi e t o s c e A s l r v m r l G i e a e sa y n sy c g c P p e e e s y e i g d l i T n M S y r K G K U B A A C A o CL I e B N r K P t s i ’ I d B u R A

104

12.1.2

12.1.3

12.1.6

12.2.1

98 11.1.1

98 11.1.2

99 11.1.3

11.1.4

99

o t t d u n e i b t ) a n A r

o e Cl M i t e Lc S i s I ( o Rc s p A t C( n e o u e u t c o d n g c r c e nr e i A v t e r ) o n h od A y o pa i M l et n S n Rn o ( e o dn s t M o t n N n l ar a u : o i ff o n c o c o e s i ne c t p o S r ou A a i cs t l f n i s a a f o a o i s c i s ne ss ieg ) t s i f n M i o r e a t n i e l o r t n li t g a M CS n a s e e c e n o ff d t l o i i r I es f a a o i u i i c l yPv sn s d n c i s e o e sg ab rdo c a a p n r l i u i t B C E S S P a o s c r u p d t i o d r t u n A I

104

12.1.1

100 11.2

104

12.1

98 11.1

I-20

11

12

E G A P

123 12.2.7

123

AUDIT OF RESTRUCTURING OF ADVANCES

140

141

142

14.1.5

145

14.2

147

147

14.2.2

149

14.2.3

150

14.2.4

151

14.2.5

153

s s ’ E E n

M M r r o l t i o o S S y a f f t a r M M i t k k u m n r r t o o e o o s a t t n a t l m w w so N s a n e ni n e e u l s a t f a C o o a m m p l E l oc o a c a a l m i t r c n M r f r gs g u I i f e F S n n t A r v l s l i i a n a e M s e t t a a i N a s d l i ’ i t e t c s f i s o n n x x f t t n t h ee u e o L t ee o ee ds l ds n fs f t a s n s

o u s t s n o o i us i A n c r a u rA t s e Pd E g o o Pd a g n M j n ‘ i n n t t o c a i a i i re i re S l r r s s r c o i e e e s s c u u a P b M t de de d L ‘ t u a c a f nr nr f f c n d t ut h ur o u u o o o S S e g rn r g E g g g g t t f s g f R s d s n n n n n n o o e e e i i i i d ew i n i r r r r r r r

o i un n rd u u s u n u r u t u l o o e e a y e t t t t t t e i i t t c c c c c c r t l m m d ct a u i u u iu ui u u uu u i u r m l l t t u v o ro r r r r r d o i t t t t t t t a h G s e e e v s s s s s e s s s l t c e n e e e y ee e ni ea e o RR R O R R e RR R Ow RC R r K P t s i ’ I d B u R A

138 14.1.1

14.1.2

14.1.3

14.1.4

14.2.1

E M S M

12.2.6

12.2.9

125 12.2.10

127

o t s e r u s a e M f e i l

s e n R o n i s n o t i A o a t r P i i t e n N a d g c i i o s s f f c i n e d o s s o r g s r a n ae C R C i l l e t d Cw a m a o i i t r r c d e o g r e e p s c o p r s n C U AB S I

AUDIT OF PROVISIONING

13.2.1

131 13.2.2

132 13.2.3

134

s A P s n N o t s i n i e v r o e r f P f i d r e n h o t s O n t o n i e s r i s v e e f o f r u r i d P d e f f c o o o n r n o s P o t i i t e l a a r a c c u r i i d e f f n e i i n r o c r i t o e e e c r G V V u p d t o i r d t u n A I

138 14.1

131 13.2

124 12.2.8

129 13.1

S T N E T N O C

I-21

13

14

S T N E T N O C

I-22

E G A P

15

LONG FORM AUDIT REPORTING (LFAR) PROCEDURES

f o f o n n o i o t i a t a u l u n a l a o v v i E t E : a t : s n n s e o n i m t o i e a t l a d p d m n n e I e m e m e m t m o t i c o m e c e m R R s o e e C e e n t n r e t u i t o o i t i i i d n mt t e a m a a l m t t c i m n n o J oe e r o P & Cm C m e R h he n il s s l A o op p am F h hm i l L G GI JI

TAX AUDIT REPORTING PROCEDURES

226 s t n e m m o C d n a s e r u d e c o r P t i d u A d e t s e g g u S

BASEL VERIFICATION PROCEDURES

n o i t a t u p m o c ) R A n o Ri t Cc (u od i t o a r t Rn sI t f e e s i s r AB dk : er t o h gw i e e wm -a k r sf i l Re s oa t lb a r t e i d p an Cu

236

18.1

222 16.4

17.1

207 16.3

161 15.3

206 16.2

160 15.2.4

165 16.1

154 15.1

15.1.1

154 15.1.2

155 15.2

155 15.2.1

156 15.2.2

157 15.2.3

160

15.3.1

161 15.3.2

163

) s

A s n t S i s n ( e s i u g n t i o n o l g i c i i t t b c n

i s c a A d ai i d m u s L

r n e 3 n A 1 e t ae t g I l n n 0 r d t e n

o 2 T n g s o , s e s t L l u n e n m a d c i o s ) i t r e d n A t c e n

a t n e o c d s I s i en c p A a l f e t C t n i a f x e o g s E a n n O d s

P n t s a e r ( o n i S d p h u l s fd a S L e n o o a n n k I m s n J a e & i e n r A n c o s r s o C o n L o o t s u e e i i r w I C a : fi t f s i e r r l s e B as o m v e e a p n r c r d o m d d B i e o a m e P c d r r a n n w s n I r r I n r u u o T g P a o o I F s s f B g f n f P f f o y n n s o i d nf s o y r z o o e e y y i o i n i o i t r r t t n n n n t u a s u i u i a a i i a s f t t t t u d g g d u l e l u u u i i e e u n l l a c r r r c r c c c g b b o c c o vx o S e S r R O O r S S N EE P P / l t t i i a d d g u u e A A L

PERFORMING GENERAL LEDGER (GL) AND PROFIT & LOSS (PL) AUDIT PROCEDURES

16

17

18

E G A P

18.1.1

236 18.1.2

237

18.2.1

238 18.2.2

239 18.2.3

240 18.2.4

240

SPECIAL-PURPOSE CERTIFICATION PROCEDURES

245 19.5

247

t

p s l t a m

D r n o er u r deR R t P udH l n s t O d a s e u

n s n r M o s ) a e o t S t f e i ) t n n y o S a i I dW I s e N ( i E u n -a s s ( m k o E bse B a u t n i i h n t S v M n o c n a e i tt S s S e j e e c) m o j v M e b reS n Ya S I e o t r aA u S t e r yS n C v a e n I ) t o ( k o n dM s i a G y e oL t ae r d yR n n e i t e oWs t o L n

v N ) b n I b lyu n AI l a l o lY S nR u n a i a s aP S o cs t s yA o( t t ii i aD e s e m Lv a m d ( e e r n n pi r coe t m m o t u e n e on i t n e e d o o s re n I h s Cc C Di Ecr I c nn n nEo n nMS oI o oot o o n t s c t d e en e eg e e o e t t t t t i o t nS a a a a a on cm c cil c ch a e fiy i fi i fig r fi i fii v i i ta t tnt t tlb e o p n r r r r r l vu e e e e e e e e i CR C CbC C CL S

246 19.4

: ) t s n E e S s m P l s a ( s r s e e e s t s s s a e i A l r p l p y o t r i T C d e t r d e n e n r E f C m a l o re o s a t e n o s o r t s i e i c t r e l u i r o e eh u s f C r t t u e s t x S g l c r s r o c e e o u e E i p n s

l r ) i P S y d x a b t s u u e E l a B d bI s i c A d a o Pp e dC f z d p o t o e e x r e dU i t E s P n n g R a ( a E nd r o o a y i n s s r y b d t n e r s c a d e e a a t o o e l n n c e ri a i t r s i t i R u r a a u f g su u m l o i v f l n d t s u o i pt a r e i i s l e t g n p s e a s c r a e o n o a x l o P R N U CR B En r C I P t i d u A 19.3

ISSUING INDEPENDENT AUDITOR’S REPORT

20.1.1

249

20.1.2

249

20.1.3

252

20.1.5

252

20.1.6

253

- a c i n u m m o C e c :n I Aa Cn Ir fe o v s t 0o r 6G o 9 2 p h 4 ) e t 9 i A R 1 w S , t ( t i d c d g e k u ng r A 3 i r A o n 1 t a i o 0 w i d d h 2 u e t e c n i s a , n Ae o i t m l f i c o u s a g d n n i A t o i r o a oh p F e s l M t s O e u y R i d h f g r f g n ri t o o n o a e a t i p R dw m e s a k l n n m I a n r p u o o y g a o B t i F T e B C R St R / l a g e L

252

20.1.4

243 19.2

249 20.1

242 19.1

241 18.2.5

237 18.1.3

238 18.2

S T N E T N O C

I-23

19

20

S T N E T N O C

I-24

E G A P

20.1.8

255 20.1.9

258 20.1.10

258

20.1.12

E B O T ( S R E W O) RT RN OE BM EE GG RA AN LA RM OH FC TN EA ER HB S -M T CO AR FF ED GE N AI PA ET NB OO

296

M I L E R P ( D E R I U Q E R S T R O P E R D ) ET TS AI RL EE NV EI T GA MT EN TE ST YY SR SA BN CI SBA 2(7)

:

SBA 2(8)

:

SBA 2(9)

:

S E R U D E C O R P R A F L R O F D E R I U Q E R N O I T A M R O F N I :

T O N T S E R E T N I N I D N A S N O IT S I N VU OO RC PC ,A A P) NC N NI I( TD NE ET C ME EL VL OO MC SBA 2(6)

A M S N I T N E M E V O M F O S I S Y L A N A Y R A N I M I L E R P :

D E R U T C U R T S E R S T N U O C C A N I T N E M E V O M F O S I S Y L A N A SBA 2(5)

S E R U G I F S S E N I S U B D N E R E T R A U Q R A E N F O N O S I R A P M O C :

G N I N N A L P T I D U A ( S W E I V E R L A C I T Y L A N A Y R A N I M) IL LE EV RE PL SBA 2(4)

S I S Y L A N A E C N A I R A V D L E I Y & T S O C Y L R E T R A U Q

289 :

G N I T N U O C C A F O N O IS TM AE UT LS AY VS EL &O R YT DN UO TC SL YA RN AR N IE MT IN LI ED RN PA

288 SBA 2(3)

E L I F O R P H C N A R B

286 :

E C I F F O H C N A R B O T S T N E M E R I U Q E R F O R E T T E L

285 SBA 2(2)

A M R O F N I G N I K E E S ) R O L ( S T N E M E R I U Q E R F O R E TN TO EI LT

283

:

R O T I D U A S U O I V E R P O T N O I T A C I N U M M O C

293

SBA 2(11) :

282

SBA 2(1)

-

291

SBA 2(10) :

275

:

261 20.2.2

271

SBA 1(3)

259

e d t h e n t t t ep n n m e e e c i e h c r gc i o w f aA ) f f t uns M d r a a S o e A h M r p

n K h t e r e i a ( r p o h a r o s t t t a oi s r p a b r t ’ d e r g e g s O e t u o a t ss R u t A e r o i e h a t d a n i t d c M e p P e d u y e n h a t t t c u ) r a e t a i i l nr di A M g d i e r i e e b h o a u p v e t d r a t A t f o E E i n a a v f r ( a i I tp o En r i r P y p d p t d h e ) e n o t K 1 e t a M p n u A o i i t i t A t t r r a a ef O g0 fda i d p n t r t d M ( n7 oui n e o en p g i A p A e oo a f r t h a A mm e a e S c t e Cm r o i y e t e c t a t L h na i g R gc h ds P i s a n p ei a t nn t i u d ni r an n s M ua qpeg d ie g a w i r o o i eosn u e c h r mg n o i mi E s r A i e i n p a f n m p n v p u i f h ri r m t e p eu s oa op e h op s O RS I E O C CAmh t F o p I t g n i t i r W

269

:

260 20.2.1

263 SBA 1(2)

260 20.2

-

:

259 20.1.11

262 SBA 1(1)

254 20.1.7

APPENDIX A

S T N E T N O C

I-25

E G A P

:

SBA 4(8)

:

B2

:

B3

:

FT I OD TU CA EY PR SO ET RU T NA IT KS RN I OS WE ES MP AA RL FR O NFS OSK I N TRA COB T AI L A TDI NUC EAR MYE ERM COM T RU O OT C FA NTF ESO

334

B4

:

RE EH TT T EF LO TY NT EI MRR O EOT GHI ATD GUU NAA EGH FNC OIN T TNA AI R MOB RP OPY FAB EEK VHN I A TT AOB RTD T E Z STI UNL LE LSA IEN O SB I ’ I A T COA ITN

337

B5

:

) S W E ( S L A N G I S G N I N R A W Y L R A E

D E T A L E R 9 1 D I V O C R O F K R O W E M A R F N O I T US LS OE SR ET RS

E G A K C A P Y R O T A L U G E R 9 1 D I V O C

) S E M S M ( S E S IS RE PC RN EA TV ND EA MF UO IG DN EI MR U DT NC AU R LT LS AE MR S,R OO RT CC IE MS

s E M S M R O F E M E H C S N O I T N E V B U S T S E R E T N I

S E S I R P R E T N E M U I D E M D N A L L A M S , O R C I M F O Y R T S I N I M

:

341 -

.E T M .

RH .TO W C FI EON T A ASL C I IUJ FTD I TAN RTA ESH CNS O FOH I OT G TAE ATH MNT RE OMF FEO LS EP V N IMO TII A/T REA TCD SNN UAE LIME LLME IPO IM T A CT COEI ICRM :

328 ) EDPC HNUV TAOC FSR( ODGN O SULI NAES ORVS IF I T EM AKL DNHM NAGO EBIC E MFHC MOEN OSHA T TL CC I EE FG RP OI ESSV HANL A T L O IR FAT T OGA EDN NL E O N IN C T EE AOMH TEMT NEOY ETCB TE MI P EMRU L PMET MOHE ICTS

B1

326 N O I T A C I F I T O ) NE ( 2 S7 R9 I. AR FS .

F. AG 5 E1 T0 A2 , RR OE PB RM OE CC E FD O H YT R4 T1 SD IE NT IA MD

B11

VT OC CA EX RA UT T IE DM NO EC PN) XIT E R F YOO P N)E 3R A( FAT 0I O4 T D CNU EOA PIX STA C EE T RS F N O I H ERT TE7 AD1 CNE IUS F I U TDA REL ERC CE( SBA 4(7)

E C N A T T I M E R D N A E C R U O S T A N O I T C U D E D X A T :

/ S N R U T E R F O N O I S S I M B U S F O W E I V E R R O FS T TN SE I LM KE CT EA HT CS SBA 4(6)

) C L ( T I D E R C F O S R E T T E L F O T I D U A R O F T S I L K C E H C :

S E E T N A R A U G K N A B F O T I D U A R O F T S I L K C E H C SBA 4(5)

D E W E N E R / D E W E I V E R S T I M I L F O T I D U A R O F T S I L K C E H C :

) C C K ( S N A O L L A R U T L U C I R G A F O T I D U A R O F T S I L K C E H C SBA 4(4)

S N A O L L I A T E R F O T I D U A R O F T S I L K C E H C

:

325

:

S E I T I R A L U G E R R I / S N O I T A I V E D : G N I H C U O V E N I T U O R

B10

323

SBA 4(3)

H S A C F O N O I T A C I F I R E V L A C I S Y H P

:

321

:

360

B9

319

SBA 4(2)

357

:

316

:

356

B8

312

SBA 4(1)

354 :

309

:

-

303

SBA 3(2)

344 :

B7

301

:

342 B6

299 SBA 3(1)

APPENDIX B

. nftRn ms s p o e a n oAe ao ea sp t c F l i b e o L r gmgd‘ e n a oLi n rs t v ra j ae mke a mrrttnth o e p n o m a s ei aTwur th e r edeieaCu t n d f t n abef u d i n e n t mdm i e sa i t c nc s ,o so nas)tuer oonL ccp g o T a cLaI nd l t i i sdoFt ,pd e nl(l a t eu n c mne va e nara r i t ame osmc c veT i dD.leeei f s r p m Aes r u c s n r u e e d .ba e b r k p e otc st s nnl t i aad o d s ae r, bcn e pn r sae dm ae toee t i h s i fcmn d t s n c o ei c . u u s ad s nc da nv h a e e e s od l p i s r i d a m t Aa a ,do c r . nrlns e t a u nt g f s fni e ue e a a ,ea fh e,r r d)Grbra e L ys p rT vp r .p -e ee n e a w C mcv aavwo a o inoWl l hoe a r d H pln( b m a t n , a n . s rs abt ae n ’ s i siot eee s’ i d kdl cmre gnemgoeut narrnrsds i e bceopreg u l d h t c nbo nas da g ln sr enat a u i od Cial Li Ps

) s e n i l e d i u g / y c i l o p t i d e r c s ’ k n a b f o e c n e r e h d A (

r e h t e h w k c e h c o T

,s ry e a ynh way p am c l i ,o l t o r ocp p ’ s n eo k r i n t na a om b i t rr c eoe pfp sns nia i t i ) ed i r en pr u .c e a . t ifa ( eoh ctk nr eod gpn; i e at l ir u d ao , r et ursd e doai p h ye r kr r rf a a s hoc s c yn e r pe ca ee oe ns cb ) (

, ag i mr n oei d t ci l d nro n c ha at on ; de l anc mv an re l a e lln t e ai drnf nfof i aot o tsae i r i l d s e a eap c r bos c t mesn h a e rth r a r nc f u uc mos d,d re e yn s t ca s te i l r n osor hspe a s t st (e’ k sr a t ianp a ms g )b it n l i rp tne i e p d npo eo sr r pa c c ) (

d e r e h d a n e e b e v a h e m e h c s C C K d e s i v e r n o s. e y l ns i l u e o dl i u u c gi It Be Rm ) (

c

52

-

b

AUDITOR’S COMMENTS DESCRIPTION S. NO.

) (

Due diligence and Assessment of Requirements

i

Audit of New Advances

9

R E T P A H C

9.1 INTRODUCTION

-

i.e.

9.2 AUDIT PROCEDURES

9.2.1 Agricultural Loans

a

S E R U D E C O R P T I D U A

53

S. NO.

Para 9.2

DESCRIPTION

AUDITOR’S COMMENTS

Reference: ) (

Disbursement and Documentation r e h t e h w k c e h c o T

ii

)

(

FIDD.CO.FSD.BC.No.6/05.05.010/2018-19 July 4, 2018 RBI Master Circular - Kisan Credit Card KCC Scheme

/ t n u o c c a B S s ’ r e w o r r o b o t e d a ; ms e nn ei ee l bd si a u hg ts n ’ ek n ma eb s r r ue bp ss i d a ) (

a

d i a p n e e b s a h m u i m e r p e c n a; rs ut sn nu i o pc oc ra c C yC rK oh t a g du no ar h mt ) (

b

d n a d e t e l p m o c y l u d n e e b s a h n os i t a a t h n c eu ms s ud cr oo dc ye r r a n s o s e d cl ee Nh ) (

c

n i e g r d a hn a cl gf no i t e o g na g rr t oo f rm e wd on ra r s od br o c me or re f u nn oe i t v a e r r a l d c n ea dl -

l a r u t l u c i r g a f o e gy c ai gl t o r op s m’ k dn na ab pr oe rp c , fd o e nr i ou i t q a e cr ef hi t , o d pn ya hl -

f i , d n a l s f d o r ) o M c R e S r e ( u e. g n a r a e g r v t t e r s r i o g d me n fr a o b l u n n i os e i h g ti t a r r w a t h s , id c g e f eg r o a eg g l t n p r i t mo o im n s - -

Audit Hint: 1. In terms of RBI Circular FIDD CO. FSD BC No. 13/05.05.010/2018-19 dated Feb 07, 2019, no collateral (i.e. mortgage on agricultural land) is required for agricultural loans upto ` 1.60 lakh.

2. KCC facility has been extended to Animal Husbandry farmers and Fisheries for working capital (FIDD. CO. FSD. BC. 12/05.05,010/2018-19 dated Feb 04 2019) 3. Check few account statements for potential transfer of disbursement to intermediary account or to close the existing NPA KCC account if any.

9.2.2 Housing Loans ) (

S. NO.

AUDITOR’S COMMENTS

Purchase of Plot

r e h t e h w k c e h c o T

i

DESCRIPTION

d nki n a oa l cb e( ofb t soy d a ) p nl eem h t s n ea i d eho hti hr tt a ie p hw t h tc ro , e s ue wls p v o nl d ri e i r h s oat m bsi e ewh eh et ht s t s ik mnwn ra ooe reh b f s t ’uo e n or h oh t i oy t aeb a r cn tn a c l c u aw) et ri no( ds fd ‘ ) (

a

-

has been obtained Para 2 b of RBI Master Circular on Housing Loans ;

S E C N A V D A W E N F O T I D U A

yl l e n v oe sd e i d c nn ea gn ao i ci t i l s b i u uq pc oa t r do ef ds nr ee t d x l ei nu eb ee t ba sv . a id hr n epa cel nhf ato tt no i n f n h e cdm unp sao ) (

RBI Circular No. DBR.No.DIR.BC.13/08.12.001/2015-16 July 1, 2015. ) (

r e h t e h w k c e h c o T

Construction on Plot

ii

sd ’ e k t na al bu p ri e t ps n y i lh g t ni i w d rn oe ck ca ar t de ed s n a u et r o c nn i s ni en eo i bt c su a hr t ’s e n t o a ; t ci r tf m ii s , e l y r ce e i l t m o n i i pt ‘ ) ( b

-

c

Reference:

ee h ht t yn bi y dt er i no wh ot u da nt an l e nt oe np om i o t ; cd c u l rae t yh s nbi s o ) cds ( rer one o f i w ’t c n o nr aa l r p s o ‘ frb e o f wo yo e pr or m co a abn ) (

a

egt yr nes t i t a i s nie ( a ai nc yo l lrh ro l iiot o t a e i f h pi c f t wvr s t i d ,u r e ; ott n ns e r o a rn s d r eco ar i e t o el s l n h b o c l o t ba ou t s c lsi l ha o e t r d e es t e ncr hl hr ht s t , a p n s n t e nemorso mwo b e n ocer ooi l e lcfwe rrt a o t k c o r f n n a ’ouhinpi t s r a b g o e t t t h n n i ts i h b t t ia e ndo t i e k e ho l wb e at n p o c t v a )d t r ns ma s e n s a a h o t dena h o nnalncll i l , p a l a s f ue n e t e o hi du ae r g st mdl i s c r n hkna et uupo d xn neh cge ie I t t oaec c Bnn i v o e bhk aRiahmetn dftst hla c 3 l f t i o b a neo f n f c h s a h l i a y e a c t s m h ‘ t i r u ri t ee h rh li ne s i ou at tpbwwt ) (

b

-

g nn od i cl i fu o b se e h gt af t o s sn o ui ot i c r u a vr t ; s tn n a a dol ecp e i d f he i t t n r t e a o i cht t c sg n a n a hi s d tl r c ie eu p t bs i h fa co r y Ant l o sii c t ’ c k r t u nr s at s bs i ) (

-

c

ey mb id t fe u o sd ts n i n i a g o ; nd pi e rdn l a i i l u a u t cbb i eo th r t a n pfe o e ae b tt a s aa hch i cf i nt y t ar i e r r bco h ent hou i t t a e yl t bp n e dmt e oe ic f p i t em r ho e t ct c sa e i ht h tt i ) (

d

sged i l nde s i li saf a umn uo ne dh ee i e v e r i hbg d / nttn f o i o n o ons i t t o a c di hu tl ec r a t nus s orr n t i t s uo c nbc no sr i ac e s fdd sotn nsnu o e ag r / oa f e l p t tu gs e l ne dp i hnm s . s utao t scc ooe t hd e snj fe uio o kofr lnhop i a / s l g s t e yc n r s l i ue e s a j bs cu o sl or o i nh d cpi ) (

e

)

Para 2 b vii of RBI Circular No. DBR. No. DIR. BC.13/08.12.001/2015-16 July 1, 2015.

( ) (

Reference:

AUDITOR’S COMMENTS DESCRIPTION S. NO.

54

Para 9.2

S E R U D E C O R P T I D U A

s t n ; s ed mr o uc ; c I A o e ; S dr d n R l g o e E n h C d i t l s h e e i l h t p y i t s w m e i i od d c e o e ce s r y e / d bt r s e e i dt l p g et i e t o r l ad e v n en e e ra d e cy / b nc r ei s e e l a o d h bp l i s e u s g a’ b r hk a n m h ea g o c b a r s f ge r ’ t C k r p n os O a ma N b ) ) ) ( ( (

; y c i l o p s ’ k n a b r e p s a e n o d n e e b s a h s t n e m u c o d f o g n i t d t n e va ) (

/ y c i l o p s ’ k n a b r e p s a s d r o c e r n. s oe dn l i e l he d ei r u a sg t n n o ei t ma ut cn oe dm ru e c ho t d o ) (

) (

r e h t e h w k c e h c o T

tes a a hh ; t r t rad re f e e sn wpa i a osdt ran b r d o a oe bt sn e ecwe ab hul r t t -s s e mn ya oo h rcbe g f t n n ’e a g i c d nel i i f bu ii k t asb r t a e r rc h e o dy/ n nt o i urdt n e e pal mo p n ura m cpl o tppc i d v u a ea t dl e inl i o f u b i f t i bc a s ‘ s eno nh ap at s ) (

ed he t n fo o i t tc n n ea ms r ee s r p us ba sy i l d t c ei r r ot s f e s; s i by w dt a ree l i f e py i t ob r r e cpg n spi u a d hl ti l i tu u c ebb t i r eo h h/ ct r td a a n sha ’ t k n n na a ao l bl p ) (

l a v o. rs pd pr ao c me or rn f o yd t l r e e ph oe rr pa s ft o r o ep ge ar lh a c ur da i e s s e e r l t ft i o d en t a a cr i f e i u t r l a e cv ) (

) (

) ( ) ( ) (

Para 2 b 7 f and g of RBI Master Circular.

) (

f l e s r o f d e c n a n fi n e e b s a h e s u o h d. ny ol cn eo s e s ro e p hr t e u hp wn o kt i ca ep hu cc oc To

) ( ) (

Para 2 b ii of the Master Circular.

) (

d e y o l p m e o t d e c n a n fi n e e b s a h e s u o h h c u s r e . hy t l e n ho ws r ke cw eo hr cr oo Tb

Purchase of a house to let it out on rental basis

vi

Purchasing/constructing a Second House

v

r e h t e h w k c e h c o T iii

Purchase of Ready-built House

iv

: n o i t a t n e m u c o D ) (

b

a

c

d

e

a

b

c

Reference:

Reference:

Para 2 b iii of the Master Circular.

) ( ) (

Reference:

AUDITOR’S COMMENTS DESCRIPTION S. NO.

Para 9.2

55

S E C N A V D A W E N F O T I D U A

r e h t e h w k c e h c o T

s a r m re ho t w if o wn r or gt i o na b oc l iE a l p npM oaS i eM t a ho ctt i nt l p on pde ae m ; ndey r ao gl i oc d r l o et el fr a o swd i on tr n ena k eb m cm m a e e n guh e n dl v ti ea ng l i r we on os se ngae lb kn l ie cn e an wv nusa ah ar ) (

hrn e kt i as m l i n d 0i a 1M ) oeP t mG iE pr uP M s P ne( ahe otm r l e rd m on f a r dug edo t nr p eaP c,n r co o at i nct eead esrn bEea n S . sM e C a G I het V lh n K a te r y e nmb t i a syd l t o l i l e o n p r cu e ooms t Ei nt ) ( `

b

m u i m e r p d n a E M S T G C r e d n u d e r e d vi oa cp nn ee ee bb s sa a hh ) (

)

(

Master Direction FIDD.MSME & NFS.12/06.02.31/2017-18 July 24, 2017 Updated as on April 25, 2018 ) (

r e h t e h w k c e h c o T

e/n hne t oe yib bt c ee dj v ee a rh n/ i a n. t oc n i t i t e a c mnf , nao e esr , t ep e bi h se a ct hes n dro rfs ooa cee et r ar cdh i n et i ohw rt t c nt i ee n l e e r /em, r he d e e ws t r d s , i u r k g o b ens c r aie abd r ) (

gs t ni i ; s n d e ot e i t a u n cs s ei n i mu n e nme omb i t os a a cch i l k, p t pnn a ab a c n l i aep ohp t l ha rc e oi h f ht t o w n ent g mi h n et i t gi i dwr etw l win m i oi n nl o kei cm s ai i c nte aad ) (

nd en ga a; e gl nb i a t l c i ea pv sa ne i ld l a a om t s dd er co uc de or rh pc su i ds ro on ci f e, r t / n r e e t m s i m g eo r c hs , ce ui sc ) (

-

c

no ot i p tu c es pn sa no i / l s r e o gt r c a e hs cy t er i co i v i r r p e s n o d e i v e dl nn ae de eb e t a v l a e ( h. r 0 s0 ne ag 0 or , l a5 oh2 nc ) (

ad hoc

d

AUDITOR’S COMMENTS DESCRIPTION S. NO.

) (

Priority Sector Loans

ii

MSME Sector i

56

Para 9.2

9.2.3 MSME and Priority Sector Loans

a

-

c

Reference:

a

b

)

` In the case of eligible priority sector loans to SHGs/JLGs, this limit will be applicable per member and not to the group as a whole

Reference:

)

Master Direction FIDD.CO.Plan.5/04.09.01/2020-21 dated September 4, 2020

r e h t e h w k c e h c o T

r reo uhf t pf e l lo b a i neg oi vi i tc e tl a s ce upa dsd e e er r rr e oid f ss i e ss n l a ro uuc don i ce v i l e d a nnb i s oa i ot t ah , hct kon avu l 0gor ; n m 1i o dat c oude l e t c s p n n y ui o t i i sc t se r ns o nr i ao ap op s l ) (

y l t c e r i d s. d nl oe i th u e t i r t a s ns i t r lo a p ne or i t f a co us e di ep o oc t dd en s a r s uu bt sc i e d p ns eo er bp sd a n ha ) (

d e m i a l c n e e b s a h ) S I S C ( y d i s d bn ua s; s te s e s r a e c t e n l i b ri og t i l c ee s n li a y r l t e n m ei Ct ) (

r e d . ny ul e tt n a ei r mp to r r a p pp ea dr to n f ed me t nn ru e vo oc c Ga s mi ot rn f u do ec vc i a e ce eh r t yn di i sS bI uS sC ) (

. r a l u c r i c S I S C r o f

) (

r e h t e h w k c e h c o T

; y l e t a i r p o r p p a d e s s e s s a e r n e e b s a h e l c y c l a t i p a c g n i k rd on wa ) (

u c i t e m d e r e h d a n e e b e v a h s e n i l e d i u g e m e h c s r e . hy t l s o u l lo a l ) (

) (

r e h t e h w k c e h c o T

t dni eid nse oir t i ic t rg c ; nen d ie avl e s i r n ai ge va nh at i l w b i e a vrro a n aos e s r r e eb e w we o ov r ra r r o oh , b bs g rk i n e n i ha t t s b i tr x a e h e m th oset rego e f d m npeo l ouw r i f R t o a s f r ne o a i k t l s i c r t l i i ei e c dmh a itf al ) (

fr o e h tt c uo dh nt i ow cd ee hg t tnd a u n h a oc bx ; s ae l a tnv a er me e t rbn o i s f a y dhl r ese tt bn i r r ua c ou s e c q r ct pa a ’t ns i r s nea e owl i o t t ra a r mo s rbk oe n f a hb n t i ) (

b

five crore and above

a

-

b

AUDITOR’S COMMENTS

DESCRIPTION

S. NO.

-

`

a

r e t p a h C e e s y l d n i K , n o i t a c i f i r e v n o i t n e v b u S t s e r e t n I E M S M r o F

. ’ s e r u d e c o r P n o i t a c i f i t r e C e s o p r u P l a i c e p S ‘ ­

Sharing of Information

i

S E R U D E C O R P T I D U A

) (

Note:

Emergency Credit Line (ECL), PMS vanidhi (PMSVN), Funded Interest Term Loan (FITL) and covid-19 package loans iv

Education Loans to Priority Sector and Central Sector Interest Subsidy (CSIS) iii

Para 9.2

57

b

c

d

Reference:

RBI Master Direction FIDD.CO.Plan.1/04.09.01/2016-17 July 7, 2016. Visit http://mhrd.gov.in/scholarships-education-loan-4

a

9.2.4 Multiple Banking Arrangements

S E C N A V D A W E N F O T I D U A

e g n a h c x. ed ge t na i d r ro a p gr eo r c n si t n n ee me eb ee r v g a ah n, an o oi l t na i m er s o uf an l i c t i ed l b e ac r t i f u so ) ( RBI Circulars DBOD.No.BP.BC.46/08.12.001/2008-09 dated September 19, 2008 and DBOD. No. BP.BC.94/08.12.001/2008-09 dated December 8, 2008. ) (

r e h t e h w k c e h c o T

ty as r yoo C t l u b art a ro ; t d e s l f t e e s n r uh ao pt e ir nr ,u l aa a novn ocfe c i m s Aoi s e c e ce dn f e o p rras i l e pt r p e rm aa p yhos bCca e ,gu n ny i g ord a i o rv t t a a e g cr n i cei f r e i s t ,n St r e ni o cyat tp rnnr a i a lpuc o u s mc e goc r eC Ap r ) (

n o i t a m r o f n i t i d e r c a d mn oa rI ; f B eR l b h at l i i a vw ad e er r e a t s i sg t r e or py en r a tp i d m eo r c c ) (

/.

AC CB /.

SP. CB9 0 .0 mo2 oN, r.0 f D1 y dOr e a vBu D i e r crb ea e ru l F d nce ert eia bCd sI9 aB0 hR8 f0 ’o t 0 r 2 o / ps1 em0 r re 0 .

2 et1 c . nn8 ei0 gA/ i 0 l M1 i d C1 ‘ ) (

r e h t e h w k c e h c o T

e v a h s t n e m u c ; od dn ta n at va em l r e o r f hd t e i b wi r c gs ne or l p a n ni od i t e a n ci i a l t p pb ao n ne ae ob l ) (

d l e ; h d e l r e a h d e e r g a r s a g h n c i s t e e i e i t m r u m c e u s i t f r o o n s o n i o t c c e f p o s s n e i -d t t u n n n i a i o ; j m n s d f o r o o s t s r c e e o i r p pn o e o c r ) ) ( (

; y l s u o l u c i t e m d e i l p m o c n e e b e v a h s m r e t n o i t c n a s r e h t o l l a ) (

d

) (

r e h t e h w k c e h c o T

s n a r t y r e v o c e r f o e r a h s r i e r ho t tk e n ga ob t d da ee gl ne ah r t r a m no er ef bd se a r he r tf i ) (

-

a

AUDITOR’S COMMENTS DESCRIPTION S. NO.

) (

Collecting Share of Recovery

ii

Appraisal and Sanction

i

Certificates/Reports

ii

58

Para 9.2

c

Reference:

a

b

c

9.2.5 Consortium Arrangements

a

b

c

r e f s n a r t e h t r o f k n a b . dd al ee l h es hi t y r me ov ro f c te n r ef s no oe r ca sh s s e r r i pe xh et nf ao ) (

b

Reference:

As per para 4.2.8 Advances under consortium arrangements of RBI MC July 1, 2015 on IRACP. RBI circulars DBOD.No.BP. BC.46/08.12.001/2008-09 dated September 19, 2008 and DBOD. No. BP.BC.94/08.12.001/2008-09 dated December 8, 2008

S E R U D E C O R P T I D U A

) (

r e h t e h w k c e h c o T

r o b f o r e v o e k a t rd on f a y; ct i l n o e pm d em vo oc r, pt po an f dI rs . a t on bu ao c sc a a hl ka nw ao br ) (

s se nv at i r c te ei r hd t I mB o rR f r de ep ns i a a t t b a om nr eo ef bd e sb a hi r c ns oe i r t p a ; mny ril s oku f no n al i b u t iri c d oe t er r em Cf ) (

) (

Refer bank’s takeover policy/guidelines. Closure of account with previous bank and opening of account with new bank simultaneously would also tantamount to takeover. ) (

-

a

-

b

r e h t e h w k c e h c o T

d e s r u b s i d ; dk nn aa db ee nh ot i f to c ny ai c s l no ep er be ep vs aa hl e sv t n e l ue ot ca cr i ap ro e r vp op ea kt aa t ) (

I B R / y c i l o p s ’ k n a b r e p e d a m n e e b s a h d tn n ea ; ms e ev s i r t uc be r si i d d ) (

y l u d n e e b e v a h k n a b s u o i v e r p h t i w d e g r a h. cd e sr e i e t d i r i s un co ec s ) (

r e h t e h w k c e h c o T

e r a d n a d e v i e c e r e r a s e i t i l i c a f l a ur so a cf y rl l oa f i r se ns od i t e a d cr i l o p c pe ar ) (

a

u

s t n ) u s o t c c e c f a f D E C d / r e B a S e l n c i ) n D U O t s s T n ( t i i t a f g m a A i i r t l d s D m r g e i O L n / v i O w C a C y r r n a D i r s o ( s / p E e L m U c e A x O T D E T

u

Ad hoc

u

u

AUDITOR’S COMMENTS

DESCRIPTION

S. NO.

) (

Application Form : Appraisal

i

Sanction and Disbursement

ii

Adherence of Bank’s Policy and Exchange of Information i

AUDITOR’S COMMENTS DESCRIPTION S. NO.

Para 9.2

59

9.2.6 Takeover Accounts

Reference:

Para 3 b of RBI circular DBOD.No.BP.BC- 104/21.04.048/201112 May 10, 2012.

Audit Hint:

a

b

c

9.2.7 Casual Facilities (TOD/DAUE/Excess/Ad hoc)

S E C N A V D A W E N F O T I D U A

b

d et du no t eo t x en h sg e i u t i o l i h c at f , ) s ht cs ue su q le l a r rc oi f n do eh np i e a l t e n t i / a l a mr d n eoa r g a ; ng si n ddi u rl d oc n cn a ei t r (s ) (

Ghosh committee recommendation 2.13

r r) ode e f wp yo d l le n l s oa dnu e ee n e wb e oe l l vb a ae nhv esa h eg bns sir w a e aw hr sd o e udp qeg n ii et hmd cl in gd e l nn i ay r a sr era( l e n c ; oy mi to c ti s nteo l s r i c a u p s gci s aed ’ k t dn m i in mr a ip ab l ) (

p u d e w o l l o f d n a d e z i r a i d e r a n o i t a z i r a l . n u o gi et r a ri z or f a sl e u t g a e dr er uo df ) (

. g . e (

r e h t e h w k c e h c o T

d cdel e pe nv ai mh e s e or cc ge a nr os i ntn d edo ue l ei c t t nbra e o i c v pf i sa r et i e hr w na s l er oa ed pv n yoba e r r pvn a npai o oaht i cya t i t c e i n i r r f oo c i hh t s i a pt d eur l ar de to nt ohnf e y yc t t ei i; bher p s d sw or m h nro t o oc of u c i ae t s m c r t n no n oe n ai rt o s tf ) (

f o e c n e r e h d a g n i r u s n e d e: w o, l ll y a s nu eo el bu c ei vt ae hm sy e c i t i l io l i c p as f ’ hk cn ua sb ) (

b

d e n e p o y l w e n n i d e w o l l a t o n e.g.

/ s s e c x e s u o; i d v e ez r i r pa el s u og he r w/ sd r e e m wr of i rn r oo bc oo t t gn ne i r wa o l l a t o n

s r e w o r r s o y a b d o t 5 s 1 t n n u a o h c t c e a r o t n s m e e r i r r t i o u l i f cc s na s if e c DD x O e O/ T g g C n n C i i w w g o n o l i l l l y a a o t o tj o n n ne

u

/ s s e cs xt En /u o Dc Oc Ta

li s a , us se a i ct i r go nh i t wu oa l l t an ft e o e sp nm oo i t c c ay hb cn no ai t r ba m gr nf i i r n r o e c f e d; r d rne oan s f i e a di t t rl i n oi i cc a ea r fm ) (

ad hoc

u

u

s gt nn i d u no ac t c s a dy ex l i o a r f p t s n ui j d d e ak or t a sp t n s uI oM c cE as Da Ch /c u ; Bs d S) e s nI d i r S d( o es c wne oor i l y t l l c a u ud sr Dt e sr On Ti a ) (

sr t a n l uu og ce cr Ar i / g) aA l F M dS e( Rs t nn i u do ec wc oa l l a n o ti o t nn e em r a l a d i n c ea ; ps st // n s )u s Ao e cFc xRc a e( ) (

ad hoc

e

Ad hoc

u

c o h d a

)

c o h d a

Obtain system generated report on TOD and excess/ , and comment if no such records maintained. Alternatively, maximum debit balances in account turnover reports ATOR menu report in finacle , can provide information on excesses/ allowed during a given period. ) (

Sanction by Competent Authority (within Discretionary Lending Powers) ii

-

c

Audit Hint:

-

a

-

c

d

AUDITOR’S COMMENTS DESCRIPTION S. NO.

60

Para 9.2

d

S E R U D E C O R P T I D U A

f

fd o e t er s o i c p r e e r xd en na i yd t e i r d or ho t c u e ar gn e ne i n b oe i t v c na ah; s s s r ye e i bw t i ,o r y o nph ayt fr u i a a , n s r ni oe ot h i tei g r a c l h o s i i o d v t ) (

Refer bank’s credit policy for allowing such casual facilities and for discretionary powers. ) (

r e h t e h w k c e h c o T

s yee t vr i au r uhd c e d ee c s o wr ,o d p l ol i ah r c e s u pe is t ,l i t d in n c ua a of s s mle aan u sc t a e cr (hr mco u c es r t d r s o n of y a f s ; )dd e nt e i i e ft i sar n nre e otvm s i e t yu r l a e u ct c i do f n i i nd d de e on er ma ba ) (

e r a s t r o p e r d n a d e r u t p a c e r a s n o i t a c i f i d . s od mr o hc ce ur sn fo o d sl g e oh l ) (

r e h t e h w k c e h c o T

s ’ k n a b r e p k n a b e h t o t e l b a t p e c c a s i d e g r a h c y t r ; y e c pi ol ro pp ) (

dg n ei vn oo ri pt pc an a ss ’ k n/ aM bB y by eb nd oe dv no er ep bp sa a hn e ye t r b e p os ra ph fd o ; y nnt oai i r ro t e a h ut ul l au a vva ) (

; os t d p r uo c se e r t a n co i f n i t e r k e a ct en ce ne ab r e bv ma uh cn o ni et a n e or nc /e s g t a r g ot pr eo r m hf co r e a t ea s dd ee l n t ha i t t ) (

l a v o r p p a m o r f y t r e p o r p f o . es gd ar lo a c ue dr i n s o e r d fe l o h se e t r a a cr i f e i u t r l a e cv ) (

) (

As per para 2 b 7 f and g of RBI Master Circular.

) ( ) ( ) (

Reference:

e.g. a

a

b

c

d

Audit Hint

Refer bank’s credit policy/master circular of the scheme for eligibility of loan, repayment schedule and other terms and conditions.

AUDITOR’S COMMENTS DESCRIPTION S. NO.

) (

Property Charged : Adherence of RBI guidelines/Bank’s Policy

i

Modifications in computer systems iii

AUDITOR’S COMMENTS DESCRIPTION S. NO.

Para 9.2

61

Audit Hint

b

9.2.8 Loan Against Properties (Mortgage Loans)

S E C N A V D A W E N F O T I D U A

r e h t e h w k c e h c o T

p) ; aI A hS t i wR E dC e/ r C e t o s R i g / er r a / r os t t i g de er i f i b t o u nS n e e( by si t a r ho h et gu r a a he t ca sr i ’ k p no ar bp ) (

t’ rni s e k visn o d oe pa gd e b nr d y i ofb d co ne ) . e ar c t hn t a e fe dr o ege eb nb msi nm ia t o u dhi n,tn aeni o g e ea l mo t g( a f t dr , rs ,oe d y t s ami ed e drg n oeda f r e ; l ,ket s l e i a gngt i aaafc g o i gbt f t tf r e i r s o ohoo d mtmp o e e ez ft ld o i r sdb o e a e l l t i e t i h a i du t t t e fqo fu do e a ) (

yn t o r e n pe ok ra pt n ne oe sb e e uv da yh r ) y ot t i u c t i r a t t c s e ll l e a , fx o a t tr n e et ma yw ax , pa rt oe f s. sus t od p h r i o e c c e e r r ( ) (

r e h t e h w k c e h c o T

en ce i e o vb ne i v aa mh r, c ot f e r e y pi c l go np i n s i ’ a k t n b oa b srd a n e hpa c y ; n ui l sg s r u ,a s o l mmu rdc e i t nt nae oem i l tc d c ie nh r aee s vh l d fa lo a ) (

. . s r e i l p p u s o t y l t c e r i d e d a m n e e b e v a h s t n e m e s r u b s i d ) (

ro e h ht t e u ha / we kr cu ec t ha Cf u n a m e l c i h e v n i e d a m n e e b s a h t n . r ee ma l ee s d r ud be sz i i d r

) (

r e h t e h w k c e h c o T

: s e d h r t o o c p e y r h n s o ’ k n n e a k b a t h e t i r a w d ) e C i f R i ( r e e v t a y c l i u f i d e t s c r i e t o n ce v e n s nu m i o a il u f t c c o a r o s n t e d i s o i i g p t g n o e a i w c rc

o l l o f ) (

s e n i l e d i u g s ’ k e n s u a a b l r c e k p n a m r b o e f l b r e a f t i s u n t s r a o h t r p i t e w O r T n e R o c i . n t d c a de e r en p u ni g s s i a n i n st i b k o n e ar l b a ) (

u

u

-

u

-

Refer bank’s policy/master circular on scheme.

AUDITOR’S COMMENTS DESCRIPTION S. NO.

) (

b

e.g.

c

i.e.

b

-

e.g.

a

AUDITOR’S COMMENTS DESCRIPTION S. NO.

) (

Documentation

ii

Disbursement : Adherence of Bank’s Policy/Guidelines

i

Bank’s Charge on Property and its Registration ii

62

Para 9.2

9.2.9 Vehicle Loans

a

b

Audit Hint:

a

u

S E R U D E C O R P T I D U A

) (

r e h t e h w k c e h c o T

; es s a k rh n a) sI a t b s i O r o R e ( h pt e t s de o r f ee o ht s ti fn R i f D ,o T de t t ea n s i r n t a i d a g bn a oa; s y yl d i t g e nr t n a o n i pd i a a t r r d i o g rc c i n nh c e uta e n fd o b e e s reg a fmr h o aa n rnh a e c o t n tee h l e t o ln e b n ai ) ) ( (

s /’ Ek Rn a Nb do nt ag sn r i od nr i o mc c fa o n ee mv ai ng n ee he t nb i e sv t a i s h os pr eo dt i ts s o np i ae gd a y ; sRc nNl i aCo oF p l ) (

d e r u s n e n e e b s a h s e n i l e d i u g k nd an ba r; e t pn ne i m g r e a s r mu eb t s a i i d r pe or ro pf pe ab ) (

d e z i r o h t u a n e e b s a h , y n a f i , n e v i . g y ei t cr no eh r t e u f a e r t pn ee t t a e r p tm s e o r c e t y n b i ) (

Refer bank’s policy/guidelines for execution of security documents. Review system generated lien marking reports to verify the lien marked. Preferential interest reports such as PREFINT report in finacle can help verify such accounts in which preferential interest rate has been given.

) (

r e h t e h w k c e h c o T

Documentation

ii

Adherence of Bank’s Policy/Guidelines i

a

b

c

d

e

Audit Hint:

e h t m o r f d e n i a t b o n e e b e v a h s R D T f o e g r ; a s hr co s t i i s d o ep ue dd ) (

a

y nt i i r su a c le l e s wn si a d )e s r ( e t t p n i e ce en r e ed tb i s n o a pe; v ) ea dh M R mdS rn ( e ad t e nmn oe i a dtt esn kyi rsa a rm e mt r u e sp t i s i nmg eoe i cr l ) (

b

. l a w e n e r r o f d e z i r a i d e r a s R D T f o s e t a d e u d ) (

c

AUDITOR’S COMMENTS DESCRIPTION S. No.

AUDITOR’S COMMENTS DESCRIPTION S. NO.

Para 9.2

63

Audit Hint:

Refer bank’s policy/documentation guidelines. Check whether vehicle inspection report by branch has been compiled in bank’s prescribed format.

9.2.10 Loan against Term - Deposits

S E C N A V D A W E N F O T I D U A

Para 9.2

64

9.2.11 Loan against Gold/Silver Ornaments ) (

S. No.

i

DESCRIPTION Sanction, Disbursement and Documentation: r e h t e h w k c e h c o T

Adherence of RBI guidelines/Bank’s Policy n e e b e v a h d e d n e t x e s e i t i l i c a f h c u s r o f d r o c e r ; ed t e a i n r i pa ot rn pi pa am ) (

a

rh e g pu ; d y o l r eh n t o u t r pd o e m n n o i e c a t t nn ei ea bm sn a e he %b e 5v 7a fh ‘ od r i on o t f aad d rsn e )ea n Vn; i l o Te n i Lda t c ( o i l n eu f g a u s l ko a r e v n o r an a oB e s t/t n nI e a aBh o l oRt l ) ) ( (

b

twelve months’

c

. s d r o c e r n o d l e h e r a s e t a c i f i t r e c r e s i a r p p a d n a p i h s r e n w o ) (

d

) (

Reference:

) (

i RBI Circular No. DBOD.BP.BC.No.86/21.01.023/2013-14 on “Lending against Gold Jewellery” dated January 20, 2014

ii RBI Circular No. DBOD.No.BP.79/21.04.048/2013-14 on “Non-Agriculture Loans against Gold Ornaments and Jewellery” dated December 30, 2013.

Audit Hint:

) (

Security and Documents r e h t e h w k c e h c o T

ii

Per RBI guidelines, securities are “valued at the average of the closing price of 22 carat gold for the preceding 30 days as quoted by the India Bullion and Jewellers Association Ltd”.

Refer bank’s guidelines for maintenance of records and security of gold/ornaments.

s ’ k n a b r e p y l e r u c e s t p e k n e e b e v a h s t n e m a nd rn oa ; rs e e vn l i i s l e / d di l u o gg ) (

a

. sd e i e t i i f r i ur ce ev s y l nu i dd ee dr ra o s ce ei r r nt en ee bd e vn aa h) sM t R n S e( md ue cn i oa dt dn ni aa sm e r i t e i t r s ui g ce er s ) (

b

Audit Hint: Refer bank’s guidelines for documentation and custody of gold etc.

AUDITOR’S COMMENTS

Practical Workbook for

Bank Branch Auditors Author

: Ishwar Chandra

Edition

: 5th Edition

ISBN No

: 9789390831067

Date of Publication : March 2021 Weight (Kgs)

: 0.41

No. of papers

: 392

Rs. 995 | USD 45

Description One-stop-reference book (with Hints & Check-Lists) for branch auditors with complete & current contents. This book is written with the objective of reducing the audit risk, besides documenting the audit work simultaneously.

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

The Present Publication is the 5th Edition & amended up to 1st March 2021, authored by CA Ishwar Chandra, with the following noteworthy features:  New Chapters on Audit of Special Mention Accounts & Audit of Provisioning  Revised chapters on CBS Environment: Useful System Generated Reports & CBS reports which are helpful for the auditors (which are also available in Finacle 10, BaNCS and Flexcube), have been added  Changes made by RBI’s extant guidelines & ICAI Standards on Auditing have been added in the following chapters:

n

Audit of Income Recognition & Asset Classification (IRAC)

n

Audit of Restructurings

n

Performing General Ledger & Profit and Loss Audit

 RBI’s LFAR Review has been added in the chapter of LFAR Procedures, which seeks information from banks’ head office and from the branches, various formats suggested to collect the information have been modified based upon such new audit requirements  Procedures for Accepting/ Planning/ Performing and Reporting an Audit, along-with audit procedures for Branch Audit/ LFAR/ Tax Audit and Special Purpose Certifications

ORDER NOW