CA MV KALI PRASAD FCA Sr Partner KALI & Co.,
Description: CA MV KALI PRASAD FCA Sr Partner KALI Co., CHARTERED ACCOUNTANTS Hyderabad Presents complements and Welcomes you to a presentation on PLANNING AND DOCUMENTATION FOR AUDIT OF BRANCH OF A BANK KALI CO., HYDERABAD WWW.KALIANDCO.IN
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slide1. CA MV KALI PRASAD FCA Sr Partner KALI & Co., CHARTERED ACCOUNTANTS Hyderabad Presents complements and
Welcomes you to a presentation on<br>
slide2. PLANNING
AND
DOCUMENTATION FOR
AUDIT OF BRANCH OF A BANK KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide3. Disclaimer The views and opinions expressed in this presentation are those of the presenter and do not necessarily replace independent professional judgement, nor is endorsed by organisers of the session. Examples included within this presentation are only examples. They may not be utilized in real-world situations as they are based only on very limited information based on past experience of the presenter.
The presenter neither is endorsing nor is recommending any of the tools or applications discussed during the presentation and are only used as examples KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide4. PLANNING FOR AUDIT This is done by the partner/ proprietor of the firm taking into account
A) size of the firm
B) break up of the advances
C) Number of accounts
D) Reports/ observations of inspections/ concurrent auditors/ Risk based RBI inspections, KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide5. There are certain mandatory procedures during the course of the audit of a branch
Audit of Advances
Audit of deposits
Audit of Bills
LFAR
IFCOFR
Tax Audit KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide6. The principal would guide on how to go about with the procedures depending upon the given situation.
Planning depends upon several factors such as:
Nature of activities
Core Banking solutions
Materiality levels KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide7. Coordination with branch management
Time frame
Annual closing guidelines issued by the head office
Latest guidance note issued by ICAI
RBI circulars KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide8. WHY DOCUMENTATION? Essential for an auditor to prove that he has conducted the audit as required by the generally accepted auditing practices.
Helps as an evidence in case of a charge of negligence.
Helps as a record and guidance for subsequent audit
During peer review, the PR would look into the documentation. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide9. SA:230 ON DOCUMENTATION Read carefully the requirements of SA:230 on documentation before commencing the audit to understand what is required of you.
Compliance with SA:230 is essential.
Make necessary adjustments / additions to comply with SA:230 KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide10. WHAT IS TO BE DOCUMENTED? The whole process of branch audit starts with applying for empanelment
Keep a copy of the application and acknowledgement from the PDC in working file.
Upload the consent letter and declarations to the banks website site and keep a copy of the consent letter in your file as well.
PDF copy of the signed documents shall be kept in the folder. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide11. LETTER OF APPOINTMENT After sending the consent, the bank sends the appointment letter indicating the branches allotted together with the details of the following:
Name and numbers of the branch manager
Location of the branch
Tentative advances at the branch
Branch code.
Contact numbers of the controlling office
Contact numbers and address of the outgoing auditors KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide12. List of documents/ reports/ certificates to be signed by the auditors
Details of the statutory central auditors
Tentative date of commencement and date of completion as required by them.
Your principal will schedule the work accordingly. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide13. COMMUNICATION WITH OUTGOING AUDITOR Code of ethics requires the auditor to communicate with the outgoing auditor. This is required for the branch audit as well
Keep a screenshot of the letter in the file along with the reply received if any.
Please note that the communication should be before acceptance of the audit. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide14. BRANCHWISE DOCUMENTATION The following should form part of the documentation in a chronological manner.
Composition of the team
Partner designated to the branch
General guidelines for the staff.
Documents should be dated and labelled. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide15. ON REACHING THE BRANCH Issue LOE and seek MRL signed by the branch head.
Basic information of the branch:
Date of starting of the branch
Details of the present manager
Branch staff KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide16. No. of ATM both onsite and off site.
Details of the concurrent auditors if any.
Date of last inspection
Last RBI inspection
Earlier years branch audit report.
Branch responses to findings of RBI/ Inspection
Any suits filed by or against thebranch KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide17. Concurrent audit reports of the current year.
NPA Status
Any change of staff during the current year
Classification of advances
Details of any frauds unearthed during the year under audit
Rescheduled accounts KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide18. DURING THE COURSE OF AUDIT CASH VERIFICATION INCLUDING ATM CASH:
Who constitute the team for cash verification
Date and time of verification
Cash as per the statement
Physical verification
Denominations
Variations if any KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide19. Note cash retention limits.
Note cash balance as on the date of audit as well as the date of balance sheet.
Reconcile the cash balance from the date of audit to balance sheet date, and keep the reconciliation on file.
Check the frequency for cash on hand in excess of retention limits. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide20. BALANCES WITH OTHER BANKS Letter of balance confirmations from other banks if any.
If there are no bank accounts, a certificate from the branch manager to that effect. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide21. ADVANCES Your principal will give guidelines for selection and the procedures to be carried out.
Samples selected for scrutiny.
Full details of the samples examined and observations thereon, KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide22. IRAC NORMS Carry to the branch the latest RBI guidelines on NPA norms for any reference if needed.
Document the procedures followed for identification of NPA.
Report your findings to the principal.
Document every item you have examined. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide23. LFAR Understand LFAR before reaching the branch
Lot of information is required to fill up LFAR
Source data for LFAR should be documented. Every opinion in the LFAR should be supported by findings
Keep authentic information in your documentation. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide24. IFCOFR This is about the Internal financial controls.
Just signing the report generated by the branch is not acceptable.
Justify every statement mentioned in LFAR and IFCOFR KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide25. THAT IS IT FOR NOW
HAPPY AUDIT
ENJOY THE WORK KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
Welcomes you to a presentation on<br>
slide2. PLANNING
AND
DOCUMENTATION FOR
AUDIT OF BRANCH OF A BANK KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide3. Disclaimer The views and opinions expressed in this presentation are those of the presenter and do not necessarily replace independent professional judgement, nor is endorsed by organisers of the session. Examples included within this presentation are only examples. They may not be utilized in real-world situations as they are based only on very limited information based on past experience of the presenter.
The presenter neither is endorsing nor is recommending any of the tools or applications discussed during the presentation and are only used as examples KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide4. PLANNING FOR AUDIT This is done by the partner/ proprietor of the firm taking into account
A) size of the firm
B) break up of the advances
C) Number of accounts
D) Reports/ observations of inspections/ concurrent auditors/ Risk based RBI inspections, KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide5. There are certain mandatory procedures during the course of the audit of a branch
Audit of Advances
Audit of deposits
Audit of Bills
LFAR
IFCOFR
Tax Audit KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide6. The principal would guide on how to go about with the procedures depending upon the given situation.
Planning depends upon several factors such as:
Nature of activities
Core Banking solutions
Materiality levels KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide7. Coordination with branch management
Time frame
Annual closing guidelines issued by the head office
Latest guidance note issued by ICAI
RBI circulars KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide8. WHY DOCUMENTATION? Essential for an auditor to prove that he has conducted the audit as required by the generally accepted auditing practices.
Helps as an evidence in case of a charge of negligence.
Helps as a record and guidance for subsequent audit
During peer review, the PR would look into the documentation. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide9. SA:230 ON DOCUMENTATION Read carefully the requirements of SA:230 on documentation before commencing the audit to understand what is required of you.
Compliance with SA:230 is essential.
Make necessary adjustments / additions to comply with SA:230 KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide10. WHAT IS TO BE DOCUMENTED? The whole process of branch audit starts with applying for empanelment
Keep a copy of the application and acknowledgement from the PDC in working file.
Upload the consent letter and declarations to the banks website site and keep a copy of the consent letter in your file as well.
PDF copy of the signed documents shall be kept in the folder. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide11. LETTER OF APPOINTMENT After sending the consent, the bank sends the appointment letter indicating the branches allotted together with the details of the following:
Name and numbers of the branch manager
Location of the branch
Tentative advances at the branch
Branch code.
Contact numbers of the controlling office
Contact numbers and address of the outgoing auditors KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide12. List of documents/ reports/ certificates to be signed by the auditors
Details of the statutory central auditors
Tentative date of commencement and date of completion as required by them.
Your principal will schedule the work accordingly. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide13. COMMUNICATION WITH OUTGOING AUDITOR Code of ethics requires the auditor to communicate with the outgoing auditor. This is required for the branch audit as well
Keep a screenshot of the letter in the file along with the reply received if any.
Please note that the communication should be before acceptance of the audit. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide14. BRANCHWISE DOCUMENTATION The following should form part of the documentation in a chronological manner.
Composition of the team
Partner designated to the branch
General guidelines for the staff.
Documents should be dated and labelled. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide15. ON REACHING THE BRANCH Issue LOE and seek MRL signed by the branch head.
Basic information of the branch:
Date of starting of the branch
Details of the present manager
Branch staff KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide16. No. of ATM both onsite and off site.
Details of the concurrent auditors if any.
Date of last inspection
Last RBI inspection
Earlier years branch audit report.
Branch responses to findings of RBI/ Inspection
Any suits filed by or against thebranch KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide17. Concurrent audit reports of the current year.
NPA Status
Any change of staff during the current year
Classification of advances
Details of any frauds unearthed during the year under audit
Rescheduled accounts KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide18. DURING THE COURSE OF AUDIT CASH VERIFICATION INCLUDING ATM CASH:
Who constitute the team for cash verification
Date and time of verification
Cash as per the statement
Physical verification
Denominations
Variations if any KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide19. Note cash retention limits.
Note cash balance as on the date of audit as well as the date of balance sheet.
Reconcile the cash balance from the date of audit to balance sheet date, and keep the reconciliation on file.
Check the frequency for cash on hand in excess of retention limits. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide20. BALANCES WITH OTHER BANKS Letter of balance confirmations from other banks if any.
If there are no bank accounts, a certificate from the branch manager to that effect. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide21. ADVANCES Your principal will give guidelines for selection and the procedures to be carried out.
Samples selected for scrutiny.
Full details of the samples examined and observations thereon, KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide22. IRAC NORMS Carry to the branch the latest RBI guidelines on NPA norms for any reference if needed.
Document the procedures followed for identification of NPA.
Report your findings to the principal.
Document every item you have examined. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide23. LFAR Understand LFAR before reaching the branch
Lot of information is required to fill up LFAR
Source data for LFAR should be documented. Every opinion in the LFAR should be supported by findings
Keep authentic information in your documentation. KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide24. IFCOFR This is about the Internal financial controls.
Just signing the report generated by the branch is not acceptable.
Justify every statement mentioned in LFAR and IFCOFR KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>
slide25. THAT IS IT FOR NOW
HAPPY AUDIT
ENJOY THE WORK KALI & CO., HYDERABAD WWW.KALIANDCO.IN 9849041466<br>