Integrated Work Paper File PDF

Bank Branch Audit
An Integrated Work Paper Model

Updated : 2017
Prepared by CA Sripriya Kumar
A Smart CA Initiative
Views expressed are those of the author. This is an indicative template. Users are advised to exercise
discretion in the use of this model work paper template
Bank Branch Audit Working Paper Manual
This entire document may be printed at the end of the audit and working papers be organised and
cross referenced in the respective sections for user and reviewer convenience
BANK BRANCH AUDIT
INTEGRATED WORK PAPER FILE
Bank Name
Branch
Year 2016-17
Date of Commencement
Date of Completion
Partner In Charge
File reference
Number of Staff deployed
Advances Value
Address of the Branch
Name of the Manager
Phone Number
Circle Office Contact

2
Page
TABLE OF CONTENTS
1. APPOINTMENT......................................................................................................................................... 5
2. KEY REPORTS AND CERTIFICATES .................................................................................................... 5
3. AUDIT INSTRUCTIONS AND TEAM ...................................................................................................... 5
4. REPORT, RETURNS AND CERTIFICATES............................................................................................ 6
5. FINAL NOTES FOR ATTENTION OF PARTNER................................................................................. 10
6. GUIDANCE DOCUMENTATION ........................................................................................................... 13
7. KEY RISKS............................................................................................................................................... 17
8. BRANCH OVERVIEW ............................................................................................................................ 18
9. PHYSICAL VERIFICATION................................................................................................................... 25
10. AUDIT STRATEGY ................................................................................................................................. 27
11. ADVANCES AND INCOME .................................................................................................................... 30
12. NPA REVIEW AND MOC ........................................................................................................................ 37
13. VERIFICATION OF DEPOSITS ............................................................................................................. 38
14. PROFIT AND LOSS ACCOUNT – ANALYTICAL REVIEW PROCEDURES ..................................... 39
15. INCOME RELATED PROCEDURES ..................................................................................................... 39
16. SPECIAL ASPECT OF DEMONETISATION ......................................................................................... 41
17. MAINTENANCE OF WORKING PAPERS ............................................................................................ 49
1. CERTIFICATION RELATED WORKING PAPERS.............................................................................. 49
2. TAX AUDIT WORKINGS ........................................................................................................................ 49
3. OTHER WORKING PAPERS ................................................................................................................. 49
4. REFERENCES ......................................................................................................................................... 49
3
5. LFAR CHECKLIST – OTHER THAN ADVANCES ............................................................................... 50

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Part A – Basics
Acceptance
Engagement Scope
Key Deliverables
4
Page
1. Appointment
a) Branch Assigned for Audit
We have been appointed as the Statutory Auditors of the ……………………… Branch of

……………………………………….. ……………………………… Bank for the year 2016-17
b) Audit Acceptance Letter
The audit acceptance letter has been provided to the CO and a copy is kept for our records. Related
documentation including Declaration of fidelity and secrecy, Declaration of full time practice and
Declaration of Indebtedness has also been attached to this section. Refer Appendix 1 for acceptance
letter
c) Engagement Letter
An engagement letter has been issued and kept in Appendix 2
d) Letter of communication with previous auditor
Communication to the previous auditor M/s ………………………….. has been sent on

………………………. Vide courier ref ……………………… dated ……………………… and
response has / has not been received. Further the previous auditor has / has not been contacted over
phone / e mail. Refer Appendix 3 for Communication sent and response received. Refer Appendix 3
2. Key Reports and Certificates
a) The following key reports / certificates are required to be issued by us
 Branch Auditors report

 Memorandum of Changes if any
 Certified / Attested financial statements
 Long Form Audit Report
 Schedules and Certificates as per index attached in the next segment
 Tax Audit report under Section 44AB of the Income tax Act
3. Audit Instructions and Team

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a) The Branch audit instructions as received from the Head / Circle office have been duly cognised
for in the preparation of this integrated work paper document
b) The audit was commenced on ……………. and completed on …………………. By the following
team
Name Designation Days From To
Partner
Qualified Paid Assistant
Audit Assistant
Articleship trainee
c) The details of Bank Staff from whom data / records / information and explanations were solicited
/ obtained for the purpose of this audit are as under
Designation Name Grade

Branch Manager
Loans Officer
Deposit Officer
Other Officers
4. Report, Returns and Certificates
a) Auditors report
b) Long Form Auditors Report
c) Returns
d) Certificates
We are required to certify and complete the following individual reports / returns and certificates ( modify
as necessary based on banks standard instructions ). The number of copies of each submission,
applicability and / or completion status is also as under
No of copies
Completion
Status
S No Index
6
Page
RETURNS
No of copies
Completion
Status
S No Index
1 BS - 1 Liabilities
2 BS - 2 Assets
3 BS - 3 Expenditure for the half year ended 31-03-17
4 BS - 4 Income for the half year ended 31-03-17
5 Final A & L as on 31-03-17
6 Final P & L for the year 31-03-17
BS 7 – STATEMENT OF CLAIMS MADE AGAINST THE BANK NOT
7 ACKNOWLEDGED AS DEBT
8 BS 8 – DETAILS OF RESTRUCTUTRED A/C (EXCLUDING CDR)
BS 9 – DETAILS OF COUNTRYWISE, RISK CATEGORY WISE
9 EXPOSURE
B Supplementary to BS Schedules
10 SUPP. B – BREAK UP OF LCS, GUARANTEES, ETC.
11 SUPP. C – CLASSIFICATION OF ADVANCES
12 Supp D - Break iup of sundry receivables and sundry depsoits
13 SUPP. E1 & E2 – EXPOSURE TO SENSITIVE SECTOR
14 Supp F - information relating to DSB 1 and additional information
15 SUPP. G – CASH & BANK BALANCE FOR SELECT NON-FRIDAYS
16 Supp H - Residual maturity pattern of forex advances / deposits
SUPP. K - PARTICULARS OF EXPENDITURE AND INCOME
17 RELATING TO PREVIOUS YEARS
SUPP. M – BREAK UP OF PAYMENTS TO AND PROVISIONS FOR
18 EMPLOYEES
C LA General and LA Suit Filed as at 31-03-17
19 Loan Analysis Summary
20 Recoveries made in Select Borrowal accounts from 01-04-16 to 31-03-17
Control Sheet for NPA, Income Recognition, Movement of NPA and Interest
21 reversal of NPA
22 BS - 3 Expenditure for the half year ended 30-09-16
23 BS - 4 Income for the half year ended 30-09-16
24 Supp M - 30-09-16
25 SFVM inventory statement
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Page
No of copies
Completion
Status
S No Index
CERTIFICATES
26 Branch Audit Report
27 Annexure A to E ( Memorandum of Changes )
28 Questionnaire in addition to Branch Audit report
29 Special Deposit Scheme 1975
30 Compulsory Deposit scheme 1974
31 PMRY scheme
Form of Certificate on sharing of recoveries in claim settled accounts under
32 SLGS 1971/SLGS(SSI) 1981
33 Interest Subvention claim
34 Interest relief on Rupee Export credit
35 Compliance of Accounting Standard 11 as per Annual Closing Circular
36 Technology upgradation fund scheme
37 Capital subsidy scheme for processing machinery
38 Long Form Audit report
39 Tax audit report
40 SLR / CRR
41 Ghosh Committee Report
42 Jhilani Committee Report
43 Statement of Capital Adequacy
44 Statement of Risk Weight Assets
45 Certificate of passing previous year MOC
Certificate of Compliance with Income recognition, Asset Classsification and
46 provisioning norms
47 Provision for sacrifice under NPV method for restructured advances
48 Provision held on upgraded restructured advances for two years
49 Sector wise, security wise and asset classification wise statement
50 Certificate of Lending to Sensitive Sector
51 Certificate of Cash Margin held
8
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Part B – Finalisation
Final Audit Notes

Scope Limitations
Representation Letter
Final Copies of Signed / Audited Documents
9
Page
5. Final Notes for Attention of Partner
a) Scope Limitations, if any
The following scope limitations have been appropriately dealt with in the Audit report of the branch /
LFAR and suitably highlighted as matters of emphasis .The Branch management has not been able to
furnish the following details / records / explanations in connection with the audit
Information requested Amount Impact on audit, Management Comments

and not provided if any
The
follo
win
g
unit
visit
s
requested by us could not be undertaken due to the following reasons
Information Amount Impact on audit, if any Management Comments

requested and not
provided
b) Significant Audit Notes
The following matters have been observed during the audit. These matters have been classified as
 Qualification in audit report

 MoC Prepared
 Discussion pending for attention of partner
 Taken to LFAR
 Ignored due to immateriality
10
 Any other
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Matters for Consideration Impact Final

Resolution
c) Representation letter
Management Representation letter has been obtained and kept in Appendix 4
d) Schedules initialed for Identification Purposes
In case of any schedules not audited by us ( eg. Sep 30 A/L, P/L etc) these may be signed with a seal as
―Initialled for Identification purposes only‖
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Part C – Audit Planning

Guidance Documentation
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Page
6. Guidance Documentation
a) RBI Master Circular
RBI issues master circulars every year on July 1 of the year. These circulars lay down the compliance
requirements on a ―refreshed‖ basis and supercedes earlier circulars. These are available on the RBI
website. The specific circulars for the components to be audited need to be reviewed . Check under the
segment called Notifications in rbi.org.in
b) Audit Guidance provided by the bank
All major banks provide a CD containing the Audit instructions which would include a description of the
key risks, components, lists of returns and certificates and the target dates. This data needs to be reviewed
before the commencement of the audit
c) Audit reports of the previous year
Signed copies of the financial statements and Audit reports of the previous year need to be obtained
d) Various Audits / review reports / inspections conducted by the bank / RBI
e) Guidance Note on Bank Audits
The ICAI has published a detailed guidance note on Bank Audits. Specific segments of this guidance note
may be referred for the components under audit. This is available on
The Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has
issued the Guidance Note on Audit of Banks 2017 edition. For the benefit of members, complete text of the
Guidance Note and the contents of accompanying CD can be downloaded at:
Please note that the soft copy of accompanying CD as uploaded on website contains only the list of Master
and other relevant Circulars of RBI. However, the CD that will come with the book will contain the
complete text of Master Circulars as well as other relevant Circulars.
To download ZIP file of text of Guidance Note and contents of accompanying CD, please click on the
below link:
f) Auditing Review and Other Standards
The work has been planned and performed in accordance with the following Auditing, Review and Other
Standards as prescribed by the Institute of Chartered Accountants of India to the extent applicable for the
engagement
13
SA reference Description
SA 200 OVERALL OBJECTIVES OF THE INDEPENDENT AUDITOR AND THE
Page
CONDUCT OF AN AUDIT IN ACCORDANCE WITH STANDARDS ON

AUDITING.
SA210 AGREEING THE TERMS OF AUDIT ENGAGEMENTS.
SA220 QUALITY CONTROL FOR AN AUDIT OF FINANCIAL STATEMENTS.
SA230 AUDIT DOCUMENTATION.
SA240 THE AUDITOR’S RESPONSIBILITIES RELATING TO FRAUD IN AN AUDIT
OF FINANCIAL STATEMENTS.
SA250 CONSIDERATION OF LAWS AND REGULATIONS IN AN AUDIT OF
FINANCIAL STATEMENTS.
SA260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE.
SA265 COMMUNICATING DEFICIENCIES IN INTERNAL CONTROL TO THOSE
CHARGED WITH GOVERNANCE AND MANAGEMENT.
SA299 RESPONSIBILITY OF JOINT AUDITORS.
SA300 PLANNING AN AUDIT OF FINANCIAL STATEMENTS.
SA315 IDENTIFYING AND ASSESSING THE RISK OF MATERIAL MISSTATEMENT
THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT.
SA320 MATERIALITY IN PLANNING AND PERFORMING AN AUDIT.
SA330 THE AUDITOR’S RESPONSES TO ASSESSED RISKS.
SA402 AUDIT CONSIDERATIONS RELATING TO AN ENTITY USING A SERVICE
ORGANISATION.
SA450 EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT.
SA500 AUDIT EVIDENCE.
SA501 AUDIT EVIDENCE—SPECIFIC CONSIDERATIONS FOR SELECTED ITEMS.
SA505 EXTERNAL CONFIRMATIONS.
SA510 INITIAL AUDIT ENGAGEMENTS—OPENING BALANCES.
SA520 ANALYTICAL PROCEDURES.
SA530 AUDIT SAMPLING.
SA540 AUDITING ACCOUNTING ESTIMATES, INCLUDING FAIR VALUE
ACCOUNTING ESTIMATES, AND RELATED DISCLOSURES.
SA550 RELATED PARTIES.
SA560 SUBSEQUENT EVENTS.
SA570 GOING CONCERN.
SA580 WRITTEN REPRESENTATIONS.
SA600 USING THE WORK OF ANOTHER AUDITOR.
SA610 USING THE WORK OF INTERNAL AUDITORS.
SA620 USING THE WORK OF AN AUDITOR’S EXPERT.
SA700 FORMING AN OPINION AND REPORTING ON FINANCIAL STATEMENTS.
SA705 MODIFICATIONS TO THE OPINION IN THE INDEPENDENT AUDITOR’S

REPORT.
SA706 EMPHASIS OF MATTER PARAGRAPHS AND OTHER MATTER
PARAGRAPHS IN THE INDEPENDENT AUDITOR’S REPORT.
SA710 COMPARATIVE INFORMATION— CORRESPONDING FIGURES AND

14
COMPARATIVE FINANCIAL STATEMENTS.

Page
SA720 THE AUDITOR’S RESPONSIBILITY IN RELATION TO OTHER
INFORMATION IN DOCUMENTS CONTAINING AUDITED FINANCIAL
STATEMENTS.
SA800 SPECIAL CONSIDERATIONS—AUDITS OF FINANCIAL STATEMENTS
PREPARED IN ACCORDANCE WITH SPECIAL PURPOSE FRAMEWORKS.
SA805 SPECIAL CONSIDERATIONS—AUDITS OF SINGLE FINANCIAL

STATEMENTS AND SPECIFIC ELEMENTS, ACCOUNTS OR ITEMS OF A
FINANCIAL STATEMENT.
SA810 ENGAGEMENTS TO REPORT ON SUMMARY FINANCIAL STATEMENTS.
SRE2400 ENGAGEMENTS TO REVIEW FINANCIAL STATEMENTS.
SRE2410 REVIEW OF INTERIM FINANCIAL INFORMATION PERFORMED BY THE

INDEPENDENT AUDITOR OF THE ENTITY.
SAE3400 THE EXAMINATION OF PROSPECTIVE FINANCIAL INFORMATION.
SAE3402 ASSURANCE REPORTS ON CONTROLS AT A SERVICE ORGANISATION.
SRS4400 ENGAGEMENTS TO PERFORM AGREED-UPON PROCEDURES

REGARDING FINANCIAL INFORMATION.
SRS4410 ENGAGEMENTS TO COMPILE FINANCIAL INFORMATION.
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16
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Part D – Branch and Risk Understanding
Internal Control Framework
Audit Risk and Focus Areas
Understanding of the Branch
7. Key Risks
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The key risks in Bank Branch Audits are as under . All our audit procedures should be directed at
minimizing these audit risks
 Material Misstatement of income, expenses, Assets or Liabilities.

 Unrecorded liabilities and contingent liabilities
 Asset Classsification and NPA provisions not adequate for impaired assets
 Asset Classification and Income Recognition especially for restructured assets
 KYC / AML norm compliance related issues
 Internal control failures over banking operations including potential / undetected frauds
 Wrong certification
8. Branch Overview
a) Products dealt by the bank branch

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Fund based Asset Fee based Asset Asset

products Products
Cash credit Bank Guarantees

Overdraft Letters of credit
Home loans Money transfers
Personal loans
Vehicle Loans
Jewel loans
b) Key data
Description 2016-17 2015-16

Rs . lakhs Rs . lakhs
Total Assets
Total liabilities
Total Advances
Total Deposits
Income
Expenditure
Profit / Loss
c) Target Vs Accomplishment
Description 2016-17 2015-16

Target Actual
Rs . lakhs Rs . Lakhs
Total Advances
Total Deposits
Rating of the Branch
d) Advances Overview - top 10 advance categories of the branch

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Page
S No Category of advances 2016-17 2016-17 2015-16 2015-16

Rs . lakhs No of Rs . lakhs No of
accts accts
1 Cash Credit
2 Overdraft
3 Term loans
4 Crop loans
5 Housing loans
6 Jewel loans
7 Personal loans
8..
10 Other advances
Total Advances
e) Large Advance Profiling
List of advances greater than Rs 2 Crores or individually accounting for 5% of the total advances
whichever is lower to be covered for detailed checking are as under
S No Account reference / name 2016-17 2016-17 2015-16 2015-16

accts accts
1
2
3
4
5
6
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f) Customer wise advances
Based on our discussions with the branch manager, these advances belong to the same party and are
considered for checking on a collective basis as slippage in one account could result in NPA status for all
accounts
S No Customer Name Facilities 2016-17

Rs . lakhs
1 1
2
3
2 1 g)
2 dvan
ce
3
profil
3 1 ing
2 by
value
3
S No Slab - Rs Lakhs outstanding 2016-17 2015-16

Rs . lakhs No of accts
1 <Rs 1 lakh
2 Rs 1 – 5 lakhs
3 Rs 5 – 10 lakhs
4 Rs 10 - 50 lakhs
5 Rs 50 lakhs – Rs 1 Crore
6 Rs 1 to 2 Crores
7 Rs 2 to 5 Crores
8 Rs 5 to 10 Crores
9 >Rs 10 Crores
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h) Deposit profiling
S No Category of deposit accounts 2016-17 2016-17 2015-16 2015-16

accts accts
1
2
3
4
5
6 Others
Total Deposits
i) Restructured advances
The following are the advances restructured by the branch and to be reviewed for compliance with
restructuring terms and conditions as per revised sanctions. Repeated restructured accounts will also be
reviewed
S No Account reference / Name During Upto 2016-17

2016-17 2015-16
Rs . lakhs Rs. Lakhs Rs . lakhs
1
2
3
4
5
j) Interest rate and other charges on major advances ( specify range )
Advances Type Interest % Charges % Charges % Charges %

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k) Interest rate on deposits

Deposit type Days Interest %
l) Any frauds reported
Note on frauds reported at the branch in the last few years
m) Information in the public domain
We have scanned the public domain for information pertaining to the Bank and we report as under :
n) Asset Classification as of date of audit
S No Category 2016-17 2016-17 2015-16 2015-16

accts accts
1 Standard
2 Substandard
3 Doubtful
4 Loss
Total advances
o) NPA Movement
Account ref Pre Audit NPA 2016-17

Opening NPA
Add : Additions
Add : Additions MoC Nil
Less : Repayments
23
Add : Legal Costs etc

Page
Closing NPA
Details of NPA Accounts
Account ref NPA – 2015-16 NPA 2016-17
24
Page
9. Physical Verification
i. Cash
 Complete the physical verification of cash and ensure that the same is tallied denomination wise
and agree to GL as at the closing date
 ATM cash should also be covered
 Document the physical verification in a cash count format
 Obtain a cash certificate from the branch management
 Any excess / shortage / difference must be reported in the Statutory Audit report itself
ii. Gold
 Complete the physical verification of jewels pledged for gold loans

 Document the physical verification in a count format
 Obtain a certificate from the branch management
 Any excess / shortage / difference must be reported in the Statutory Audit report itself
iii. Investments
 Physical verification of Investments

 Obtain certificate from bank manager for the same).
 If investment is held /done by the Branch
25
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Part E – Performing the Audit
Audit Strategy
Previous Years Audit Reports
Concurrent, Revenue Audits,Inspections
26
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10. Audit Strategy
a) Top Down Approach
Based on our high level review of the branch data, loans and deposits CBS files and based on discussions
with the Branch manager the following is proposed as the audit strategy. - The audit strategy will envisage
a top down approach which involves understanding the Balance Sheet and P & L and a drill down to
perform compliance and substantive procedures at a component / transaction level
 Top Down Approach to audit

 Understanding of the internal control framework
 Utilisation of Other Audit reports – Revenue, Inspection and Concurrent audit reports
 Review of previous years audit reports
 Identification of high risk areas which are also material
 Focus on Advances and Income
 Focus on revenue leakages and non fund based products
 Unit visits
b) Internal Control Framework
Discuss with the manager on the following elements of the Internal Control Framework and
ensure that these are in place
 Detailed Operating Procedure manuals

 Delegation of powers and Authorisation of transactions
 Segregation of duties and Independent Checks and balances
 Controlled Maintenance of records and documents
 Elaborate system of Accountability for assets of the bank
 Extensive computerization and procedure standardization
c) Review Notes of Concurrent, RBA, Inspection Reports and Stock audit reports of borrower
accounts
Reports Conducted / Report date

Previous year audit report
Internal Audit under Companies Act 2013
Risk based Internal Audit
Revenue Audit
Inspection
Concurrent Audit
Stock Audit
Vigilance Audit
27
Systems Audit
Page
RBI inspection
S No / Account reference / nature of Amount Present Status Impact, if any

report issue / date of report – Rectified, on audit
LFAR, MoC, strategy
Unadjusted
28
Page
Part F – The Audit
Advances and Income
29
Page
11. Advances and Income
a) Overall Audit Approach
The approach for Audit of advances envisages the following important phases
 Understanding the large types of advances

 Understanding the large value accounts where deficiencies will have a material impact
 Internal Controls – follow the questions in the LFAR and check samples against checklists so that
each advance type can be checked with reference to its unique requirements
 Review of NPA
b) Planning for Audit of Advances ( from the GN on Bank Audit of ICAI )
i. Obtain largest accounts of the branch.
ii. Obtain the list of Specially Mentioned Accounts or irregular accounts, These are published by the
bank as daily exception reports . These are accounts which are most likely to slip to NPA
iii. Obtain the list of restructured accounts: as these require separate additional provisioning.
c) Summary of advances of the branch ( as per Balance Comparison report)
Advance Category Current year Previous Year
d) Review of Top Advances
 Top accounts > = Rs 2 Crs / 5% advance ) should be checked 100% to cover all accounts. This is a
requirement in the LFAR also
 Ensure that the review
o All loan balances >Rs 2 Crs

o All disbursements during the year >Rs 2 Crs
30
o Near to Rs 2 Crore balances where repayments have happened in the last few weeks
Page
 The bank needs to provide the particulars of the top accounts in the prescribed format kept at the
end of the LFAR
 The broad principles in relation to Appraisal, Sanctioning, Documentation and post disbursement
review shall be adhered to
 Any deficiencies in the above accounts need to be viewed seriously and reported in the LFAR. In
case the audit opinion is likely to be impacted, attention should be drawn to Matters of Emphasis
paragraphs etc of the Auditors report
e) Restructured Advances
 Obtain a list of restructured advances
 Review the sanction of the restructuring
 Restructured advances to be reviewed with reference to revised terms of sanction properly

approved by the relevant sanctioning authority
 Ensure compliance for the terms of restructuring ( any non compliance will be regarded as a
slippage )
 Obtain a general understanding of the type of advance which has been restructured – project / non
project advances, prior to or after Commencement of Commercial production etc as per the RBI
master circular which deals in detail on manner and mode of treatment of restructured advances
 All terms of revised sanction are complied with ( including but not limited to revision in
commercial production, interest rate revision, rescheduling of repayments, additional security
cover, promoters contribution enhancements, escrow requirements etc ). In case of non
compliance, appropriate reclassifications have been considered
f) Advances Verification – Cash Credit and overdraft accounts
For CC and OD accounts selected, check for the following :
Financial Statements and solvency / capability of borrower / limit

Unaudited financial statements have been furnished for balances <Rs XX lakh
Audited financial statements have been furnished for balances >Rs XX lakh
Audited financial statements have been furnished for corporate borrowers
Income tax returns have been furnished
Credit Appraisal has been done on merits of business / profession and not based on collaterals
31
offered
Page
Limit fixation and approval

Proposal for assessment of Working capital needs is available

Sanction as per limits of branch
Interest / Charges is as per the policy of the bank
If immovable property has been offered as security
EC for continuous period is available and is clear
Title Deeds have been deposited with the bank
If immovable property , EM regn>Rs 25 lakhs
Legal opinion is available and indicates clean title deeds
Valuation report is present and is commensurate
Valuation report is less than three years old
Insurance policy available, adequate and comprehensive
Security of stock and book debts / other collaterals
 Demand Promisory note has been furnished
 Hypothecation agreement for stocks and Drs
 Guarantee Agt has been executed properly
 ROC regn of charge for cos for hyp of stock and book debts - Form 8
 ROC regn of charge for cos for hyp of immov property
 ROC search report once in XX years
 Others
Monitoring Actions
 Submission of stock statements on a monthly basis
 Maintenance of drawing limit based on Working capital statements
 Quarterly book debts Certified by CA
 Stock audit once a year by CA for >Rs 1 cr
 Godown visit by banker - monthly or qtrly
Repayments / TOD / One off credits
 Debit and Credit summation to be reviewed to ensure continuous operation

 Review of accounts featuring in Irregular report as per CBS
 One off credits to be investigated
 Drawing in excess of sanctioned limit on a continuous basis
 Consistent excess over drawing power as per sanction
CBS Updation
32
 Loan details recorded correctly in CBS

Page
 Interest is updated correctly as per base documents

 Test of repayments done

 Test of interest accrual done
 Test of accuracy of processing charges
g) Advances Verification – Housing loans
 Obtain the sample of housing loans as selected by you

 If samples are not provided report to the partner under Scope Limitation segment
 Loan application is available
 Loan application is signed and properly executed
 Sanction letter is available
 Loan proposal indicating projections etc
 Title deeds lodged with bank
 Assessment of repayment capability - Sal cert / it returns / pl acct etc
 Margin at XX% ( Land cost + constrn cost )
 EC available
 Legal opinion
 Approved Building plan - CMDA
 Insurance policy
 Pledge deed
 All documents refer to the same survey number
 EM creation by deposit of title deeds
 EM registered for Rs 25 lakhs
 Direct payment to vendor of land / contractor
 If client own construction, stage payment subj to original bills cert by civil engg for work done
 Inspection of property by bank
 Final valuation cert for completed properties
 Valuation report is less than three years - available from expert
h) Advances Verification – Term loans
 Obtain the sample of Term loans as selected by you

 Loan application is signed and properly executed
 Loan proposal indicating projections etc as well as financial / audited financial statements
 Title deeds lodged with bank
 Assessment of repayment capability
33
 LTV ratio is maintained

 If release against Proforma , then final invoice has been received
Page
 If final invoice has not been received and time has elapsed, physical verification needs to be done
 In final invoice and proforma check for parameters such as TIN number, supplier particulars etc
 Obtain installation certificate , if loan is for machinery
 If for any other purpose, check proof of end use
 Latest audited financials as per norms
 In case of restructuring, check for the same
i) Advances Verification – Educational loans
 Obtain the sample of loans as selected by you

 Loan appln is signed and properly executed
 Loan for Grad / PG
 Loan - Inland –Foregin
 Plus 2 pass proof
 Asst of repayment of parent
 For loan to minor , parent should sign the application and all documents for self and on behalf
of
 Where minor > 18 yrs after disbursement, AOD and LOU counter signed by parent
 Parent IT return
 Parent Salary certificate / PL acct profit
 Ceiling based on course
 Not given for capitation fee
 Margin maintained at X%
 Less than max ceiling
 , Rs 25K no sec
 Rs 25 - 50K - surety apart from parent
 >Rs 100 K – collateral
 EM creation by deposit of title deeds
 EM registered for .Rs 25 lakhs
 All documents refer to the same survery number
 Approved plan
 Inspection of property by bank, if collaterial
 Interest to be serviced before completion of course for loans to employed Persons
j) Advances Verification – Vehicle loans

34
Page


 DPN
 Hypothecation agreement
 Loan proposal indicating projections etc
 Financials of the borrower prior to loan date
 IT returns for period before loan sanc. Date
 RC book - certified true copy
 RC endorsed in favour of bank - Hypothecation endorsement
 Loan is sanctioned net of margin for 'Cost and Accessories" not for charges
 Disbursement amount , tenure and tenor as per sanction
 Duplicate keys
 Original invoice
 Direct payment to dealer for vehicle
 Guarantor signature
 Comprehensive insurance - live now and bank clause in fav of Ind Bank
 For second hand vehicle - valn report from approved valuer
 Higher margin requirement for second hand vehicle
k) Advances Verification – Jewel Loans

 Loan agreement is available and properly executed

 Jewel packet verified for weight and purity
 Letter of pledge is available
 Rate of interest updated properly
35
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l) Advances Verification – Loans against Own Deposits

 Letter of pledge is available

 Nature of security - RD / FD
 Lien is marked in system against the FD
 Deposit receipt is available with bank and discharged
 Loan closed after due date of deposit
m) Advances Verification – Loans against financial assets

 Loan amount original sanctioned is within powers
 Securities in the name of the borrower
 In case security not in the name of the borrower , consent letter is available
 Shares - demat and pledged noting in demat
 LIC - Assignment in favour of bank and regd
 Govt instruments tfd as "Sec to Ind Bank " - NSC / KVP
 Loan is within margin limits of surr. Value
 Loan is within margin limits of mkt. Value for shares
 Loan is within margin limits of face value for govt notified instmts
 Shares erosion in market value
 LIC erosion in surr. Value due to unpaid premium has been cognised for
36
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12. NPA Reviewand MoC
a) NPA Overview and movement
Account ref NPA 2016-17

Opening NPA
Add : Additions
Add : Additions MoC
Less : Repayments
Add : Legal Costs etc
Closing NPA
b) NPA review
 The NPA file was obtained from CBS as at date of audit

 The Specially Marked Accounts files were obtained
 The irregular files were obtained
 The files were cross referenced to the loan balance and CCOD file
 Clean loans – top value were test checked to ensure that there are no impairments
 Loans featuring in any of the above reports – NPA / SMA and IRR were considered for the
review
 The accounts were reviewed individually with the Branch manager to determine the extent of
slippage, possibility of recovery and the need for reclassification
 Additionally, accounts identified as potential NPA based on documentation / security lapses
were also considered for the review and rectification before the Balance Sheet date
 Restructured accounts listing was obtained and reviewed in detail
c) Details of MoC’s
S Nature of Issue Debit Credit Amount Remarks

No Account Account
Rectification of Income
recognition
Reclassification of NPA’s (
fresh )
Change in the status of Old

NPA’s
Account reclassifications
within P&L: and A&L
37
Reclassification of Loans
Page
and Advances where done

S Nature of Issue Debit Credit Amount Remarks

No Account Account
differently by the branch
Assets put to use and not
capitalized
d) NPA Movement statement
 Obtain the NPA movement statement from the branch

 Check opening NPA with reference to the previous year audited financial statements
 Check additions
 Check deletions
 Closing balance should tie to the closing NPA report
 All cases of deletions should be verified for payment by the borrower or for restructuring
13. Verification of Deposits
 Obtain the list of deposit samples to be verified

 Date of deposit
 If SB acct holder, give SB ref
 Application form and complete
 Photograph
 ID proof and age proof
 Address Proof
 Introducer
 Pan copy
 Pan related documentation
 Rate as per norm
 CBS updation done correctly
 Interest Computation is accurate
 Deposit file has been reviewed for interest rates on a substantive basis (sanity checks)
38
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14. Profit and Loss Account – Analytical review procedures
Description 2016-17 2015-16 2015-16 2015-16

Amount Amount % Change Nos Nos % Change
Rs . lakhs Rs . Lakhs
Total Advances
Total Deposits
Interest on
advances
Interest on deposits
Other Incomes
Profit / Loss
NPA Amount
Ratios
Interest to advances
Interest to deposits
15. Income Related Procedures
These procedures are in addition to the procedures performed at time of audit of loan files
Obtain the break up of fund based ( loans , CC, OD ) and Fee based ( Guarantees, LC etc )
Fund based
 Obtain the schedule of charges and interest rates for different categories of liability products
 Prepare a schedule of total income of the bank
 The checking of interest of large loan accounts will be completed in the above audit procedures
 Tabulate the value checked against the total income
 Extend verification if the value of interest verified if necessary
Fee based
 Discuss with the manager and obtain an understanding of the various fee based products
 Obtain the schedule of charges and interest rates for different categories of fee based liability
products
 Check the guarantees register and verify accuracy of computation of income
 Obtain a list of all packing credit and other facilities and verify accuracy of computation of
income
 Extend verification if the value of interest verified if necessary
39
Page
Part G – The Audit
Demonetisation
40
Page
16. Special Aspect of Demonetisation
Consequent to the announcement made by the Honourable Prime Minister, Shri. Narendra Modi on 8th
November, 2016 regarding the withdrawal of the existing currency notes of denomination of Rs. 500 and
Rs. 1,000, there have been a series of announcements and notifications by the RBI.
For each of the below categories, please select samples and confirm compliance
a) Restrictions on Exchange
Date Date to Event description Samples / Exceptions

Nov 8 Nov 13 The Specified Bank Notes of
aggregate value of 4000/- or below
were exchanged for any
denomination of Bank notes having
legal tender, with a requisition slip in
the format specified by RBI and
proof of identity as declared in the
Notification
Nov 14 Nov 17 The limit for exchange of Specified
Bank Notes, over the counter was
increased from Rs. 4000/- to Rs.
4500/- w.e.f 14th Nov 2016, vide
notification no. DCM (plg) No.
272/10.27.00/2016-17 dated
November 13, 2016
Nov 18 Nov 24 The limit was again revised from Rs.
4500/- to Rs. 2000/- w.e.f November
18, 2016, vide RBI notification no.
DCM (plg) No. 1302/10.27.00/2016-
17 dated November 17, 2016
Nov 24 The Exchange Facility was finally
withdrawn and permitted only till the
end of business hours on November
24, 2016 as mentioned by
Government of India in the
Notification earlier. However, the
exchange facility has not been
withdrawn from RBI Offices
b) Restrictions on Deposits

Nov 8 Nov 24 The Notification stated that no
limit was specified on the quantity
or value of the Specified Bank
Notes to be credited to the account
maintained with the branch by a
41
person, provided the Specified

Bank Notes were tendered in
Page
accordance with standard banking


procedure and on production of
valid Proof of Identity
However, where compliance with
extant KYC norms was not
complete in an account, maximum
value of specified bank notes to be
deposited was restricted to Rs.
50,000/-.
c) Restrictions on physical withdrawals ( general accounts )

Nov 8 Nov 13 Cash withdrawal from a bank account
over the counter was restricted to Rs.
10,000/- per day subject to a weekly
overall limit of 20,000/- as per the
Notification
Nov 14 Nov 24 From 14th November, 2016, the
weekly limit of Rs. 20,000/- for
withdrawal was increased to Rs.
24000/- vide notification
RBI/201617/129 DCM (plg) No.
1272/10.27.00/2016-17 dated
November 13, 2016.
Nov 25 Notification no. RBI/2016-17/158
DCM (Plg) No.1424/10.27.00/2016-
16 dated November 25, 2016
instructed banks to continue allowing
their existing customers to withdraw
cash from their accounts uptoRs.
24000/- in a week, till further
instructions are given.
d) Special concessions for CC / OD holders

Nov 21 .. RBI vide notification no. RBI/2016-
17/142 DCM (Plg)
No.1317/10.27.00/2016-17 dated 21st
November, 2016 allowed the
current/overdraft/cash credit account
holders (operational for the last 3
42
months or more) to withdraw cash up to

Rs. 50,000/- in a week subject to certain
Page

terms and conditions.
The same facility was extended to
traders registered with APMC markets
via notification no. RBI/201617/146
DCM (Plg) No.1323/10.27.00/2016-17
dated 21st November, 2016.
Nov 29 .. However, withdrawals of deposits made
in current legal tender notes on or after
November 29, 2016 was allowed
beyond the current limits preferably in
the new legal tender notes i.e. Rs.
2000/- and Rs. 500/- as per circular
RBI/2016-17/163
DCM.No.1437/10.27.00/2016-17 dated
November 28, 2016.
e) Restrictions on physical withdrawals ( Jandhan Accounts )

Nov 29 Certain limits as a matter of
precaution were set on the
operations of PMJDY accounts by
RBI vide notification RBI/2016-
17/165 DCM(plg) No
1450/10.27.00/ 2016-17 dated
November 29, 2016 which allowed
Fully KYC compliant account
holders to withdraw Rs. 10,000/-
from their accounts, in a month.
Branch managers may allow
withdrawals beyond Rs. 10,000/-
only after ascertaining the
genuineness of such withdrawals
Non-KYC compliant account
holders to withdraw Rs. 5,000/- per
month from amount deposited
through Specified Bank Notes after
November 09, 2016 within the
overall ceiling of Rs. 10,000
43
Page
f) Restrictions on physical withdrawals ( NRI / NRO accounts )
NRI/NRO accounts: Specified bank notes were allowed to be deposited in the NRO accounts. If
someone is not in India then written authorization to enable another person to act on their behalf was
accepted
g) Restrictions on physical withdrawals ( Marriage )

Nov 22 Notification RBI/2016-17/145
DCM(plg) No. 1320/10.27.00/21-17
dated November 21, 2016
empowered the account holders to
withdraw a maximum of Rs.
2,50,000/- from a single account if
there is a marriage in the house on
or before December 30, 2016 on
providing sufficient KYC
documents
h) Restrictions on physical withdrawals ( farmers )

FAQ updated Farmers were allowed cash
upto Dec 1, withdrawals of Rs. 25,000/- per
2016 week from their loan or deposit
accounts, which were KYC
compliant (clarified by FAQs last
updated on December 1, 2016).
44
i) Restrictions on ATM withdrawals

Page

Nov 9 Nov 10 All ATMs and other machines used
for receipt and payment of cash
were shut on 9th and 10th
November, 2016 as instructed via
the Notification. They were re-
configured to disburse banknotes
of Rs. 100/- and Rs. 50/-
denomination prior to reactivation
of machines on November 11,
2016.
Nov 11 Nov 18 In the Notification withdrawal
from ATM was restricted to Rs.
2000/- per day per card
Nov 19 Important :In the Notification
withdrawal from ATM was
restricted to Rs. 2000/- per day per
card up to November 18, 2016
which was raised to Rs. 4000/- per
day per card from November 19,
2016. However there was no such
clarification by RBI on the
increment of limit to Rs. 4000/-
on November 19, 2016 and so the
limit stood the same as before i.e.
Rs. 2000.
Nov 10 Nov 30 Vide RBI Press Release - 2016-
17/1199 dated November 14, 2016
all charges of ATM usage were
waived from November 10, 2016
till November 30, 2016.
45
Page
j) Bank branch working days

Nov 9 Nov 9 November 9, 2016(Wednesday) was
declared to be a non-business
working day for all banks to carry
out preparations for implementing
the scheme as per this circular.
Nov 12 Nov 13 Banks were advised to keep all the
branches open on November 12 and
13, 2016 as referred by RBI in the
Press release: 201617/1161 dated
November 9, 2016.
k) Reporting

Nov 8 Every banking company and every
Treasury had to complete and
forward a return (Annex - 1) in the
prescribed format, showing the
details of the cancelled notes held
by it at close of business on
November 8, 2016 and recalled by
it, by 13:00 pm on November 10,
2016, to the concerned Regional
Office of RBI, under whose
jurisdiction the Head Office of the
bank is located
Nov 10 Dec 30 Each bank branch exchanging
Bank notes in the denomination of
Rs. 500/- and Rs. 1000/- to report
at the close of each business day
starting from November 10th, 2016
till the closure of the scheme on
December 30th, 2016 by email or
Fax to Controlling Office, a
statement (as per Annex - 6)
showing details of specified bank
notes exchanged by it. Controlling
Offices will aggregate these
statements and report in Annex -
6A to Department of Currency
Management, RBI
46
Page
l) Incremental CRR

Nov 26 As per circular RBI/2016-17/159
DBR.No.Ret.BC.41/12.01.001/2016-17
dated November 26, 2016, a directive was
issued under section 42(1A) of the
Reserve Bank of India Act, 1934
requiring all Scheduled Commercial
Banks/ Regional Rural Banks / all
Scheduled Primary (Urban) Co-operative
Banks / all Scheduled State Co-operative
Banks to maintain with the Reserve Bank
of India, effective from fortnight
beginning November 26, 2016 an
incremental CRR of 100 per cent on the
increase in NDTL between September 16,
2016 and November 11, 2016. The
incremental CRR being a temporary
measure was to be reviewed by RBI on
December 9, 2016 or earlier.
47
Page
m) Deposits of SBN by banks
Date Event description Samples / Exceptions

As per RBI circular no. Banks may deposit SBNs directly
RBI/2016-17/153 DCM with the offices of RBI under whose
(Plg) jurisdiction they are located. These
No.1383/10.27.00/201617 SBNs will remain, in the vaults of
dated November 24, RBI, under the lock and key of the
2016; depositing banks till taken up for
examination
For the SBNs deposited by banks,
RBI will afford credit to their current
accounts maintained with RBI.
Thereafter, if any shortage,
counterfeit note, mutilated note, etc.
is detected during detailed processing
at RBI, the value of the same will be
recovered from the bank concerned.
As per RBI/2016-17/160 it has been decided to introduce a
DCM (Plg) new scheme for depositing SBNs
No.1430/10.27.00/2016- with designated currency chest at the
17 dated November 27, district level, under guarantee
2016 agreement similar to the current
facility available at RBI offices.
As per RBI/2016-17/162 with a view to expand the ambit of
DCM (Plg) the Chest Guarantee Scheme for
No.1438/10.27.00/2016- Specified Bank Notes (SBN) -
17 dated November 28, (CGSS), it has been decided that
2016 banks operating currency chests may
be allowed to operate CGSS if they
have additional space in their
existing currency chest or additional
storage space at the same centre
which is nearly as safe and secure as
that of a currency chest. Requisite
approval for the above will be
granted by the concerned Regional
Office (RO) of RBI, on receipt of
request from any bank subject to the
terms and conditions laid down in the
above mentioned circular
48
Page
17. Maintenance of Working Papers
1. Certification Related Working papers
 Asset Liability Management

 Jilani committee and Ghosh committee
 Capital adequacy ratio
 PMRY / SEEUY
 SLR / CRR – 12 odd dates
 Compliance with RBI Norms on IRAC
 DICGC / ECGC
 Interest subvention schemes
 TUF schemes
 Certification of Provision for Restructured Accounts
 Certificate of Sensitive Sector and CRE
 Other Certificates
2. Tax Audit Workings
1.1. Tax audit report

1.2. Audit program
1.3. Samples
3. Other Working papers
Any other relevant information
4. References
 Branch Audit guidance document as received from the HO / CO

 Bank Authority levels for sanction limits for loans and advances
 IRAC norms relevant for this audit
 RBI master circular – July 1, 2016
 Other RBI Circulars relevant for the purpose of this audit
 Guidance Note on Bank Branch audit as issued by the ICAI
 Revised SA700, 705 and 706 for reporting
49
Page
A.ASSETS: Bank Branch Audit Working Paper Manual
1 Cash
- Obtain a schedule of denomination of cash
- Physically verify the existence of cash and tally with the (and tally
with the) above schedule
5. LFAR Checklist – Other than advances
As attached
50
Page
- Tally physical balance with Cash Scroll and the General Ledger as on
the date of verification
- Ascertain the retention limit of cash fixed by the head office. In case
the balance exceeds the Retention Limit the same may be reported in
the following format:
Cash Balance in excess of Rs.

Date: Amount Rs.
- Verify the insurance cover taken on transit cash.
- Verify whether cash is maintained in effective joint custody of two or
more persons
- Ensure that are responsible official verifies physical cash on a daily
basis.
- Check whether the cash balance has been verified periodically by the
Branch Manager in addition to the Head cashier.
2 Balances with other Banks
- Verify whether the branch has any balances with other banks.
- Obtain confirmatory letter from the bank or branch wherever
applicable.
- Ensure whether BRS is prepared periodically.
- Verify BRS on a test check basis.
- Check for unresponded credits/debits found in the BRS and report the
same.
3 Investments
- Obtain the schedule of investment held by the branch.
- Check for appropriate authorization issued by H.O/ Controlling

Authority
- Conduct physical verification of investments and tally with the above
schedule
4 Advance
- Ensure that monitoring of slippage of accounts from standard to
substandard/doubtful is done and reported promptly to the
Controlling Authority.
- Ensure that recovery measures are promptly taken.
- 51
Page
5 Bank Branch Audit Working Paper Manual
Other Assets
Stationery/Stamps
- Obtain schedule of Stationery Stocks
- Ensure that the physical balance tallies with the above schedule.
- Suspense Accounts/Sundry Assets.

- Obtain anschedule/return of suspense account and verify the items
for long outstanding items.
- Report unusual/long outstanding items.
- Verify transfer to H.O during the year
- Does the scrutiny of accounts under various sub-heads reveal
balances, which in your opinion are not recoverable and would
require provision/ writeoff.
B. LIABILITY:
Bills payable, Sundry deposits etc.,

- Does the scrutiny of account sunder various sub-heads reveal odd
balances?
- Report the number of items and aggregate of amount of old
outstanding item spending for 3 or more years
- Check amount received against suite filled accounts
- Check unidentified deposits e g. Excess cash found in the branch etc.,
C. PROFIT AND LOSS ACCOUNT
- Ensure that the branch has followed the income recognition norms
stipulated by RBI
- Test check calculations of interest on deposits for excess/short credit of
material amount if so give details thereof.
- Study preceding 2 years half year returns for divergent trends in major
items of income and expenditure and report those which are not
satisfactorily explained by the branch
- Indicate the effect of changes if any in accounting policies on the items
of income and expenditure.
D. GENERAL
House keeping
- Ensure whether the branch is regular in furnishing a house keeping
return to the Controlling Authority.
- Verify whether the branch maintains the books and records properly in
accordance with the H.O guidelines.
- Ensure that the balances are duly linked and properly authenticated by
responsible official /authorised signatories?
- Report the lapses in balancing procedures
- Report differences in crystallised balances lying unattended
52
Page
- Ensure that the control and subsidiary records have been reconciled at
the year-end or at the prescribed intervals
- Inter Branch Accounts
- Are there any double responses or wrong responses in H.O A/c.
- Indicate the outstanding entries in the inter branch accounts together
with a statement of reasons for their remaining outstanding and the
steps taken by the management in respect thereof.
- Are there any frauds discovered during the year under audit and report
if any.
- Does the examination of the accounts indicate possible window
dressing?
- Are there any matter ,which you as branch auditors would like to bring
to the notice of the management or the central statutory auditor.
- Tax Audit U/s 44AB ofI.TAct,1961

- Audit Report to be made in form3CA
- Obtain verify and certify particulars required in form3CD

- Other Certifications
- 1. PMRY, SEEUY and SEPUP scheme certification
Ensure that correct claim/subsidy is calculated
- 2.DICGCscheme
Verify whether the information furnished is correct according to the
books/records maintained by the Branch.
- Verify whether the recoveries effected in the Claims Received A/c have
been proportionately remitted to the corporation.
- 3 Ensure that the certificates required are within the scope of audit
e g. Certification that the debts are fully secured.
53
Page

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Bank Branch Audit

An Integrated Work Paper Model

BANK BRANCH AUDIT

INTEGRATED WORK PAPER FILE

Number of Staff deployed

Address of the Branch

Name of the Manager

Circle Office Contact

2. KEY REPORTS AND CERTIFICATES .................................................................................................... 5

3. AUDIT INSTRUCTIONS AND TEAM ...................................................................................................... 5

4. REPORT, RETURNS AND CERTIFICATES............................................................................................ 6

5. FINAL NOTES FOR ATTENTION OF PARTNER................................................................................. 10

6. GUIDANCE DOCUMENTATION ........................................................................................................... 13

8. BRANCH OVERVIEW ............................................................................................................................ 18

10. AUDIT STRATEGY ................................................................................................................................. 27

11. ADVANCES AND INCOME .................................................................................................................... 30

12. NPA REVIEW AND MOC ........................................................................................................................ 37

13. VERIFICATION OF DEPOSITS ............................................................................................................. 38

14. PROFIT AND LOSS ACCOUNT – ANALYTICAL REVIEW PROCEDURES ..................................... 39

15. INCOME RELATED PROCEDURES ..................................................................................................... 39

16. SPECIAL ASPECT OF DEMONETISATION ......................................................................................... 41

17. MAINTENANCE OF WORKING PAPERS ............................................................................................ 49

1. CERTIFICATION RELATED WORKING PAPERS.............................................................................. 49

2. TAX AUDIT WORKINGS ........................................................................................................................ 49

3. OTHER WORKING PAPERS ................................................................................................................. 49

5. LFAR CHECKLIST – OTHER THAN ADVANCES ............................................................................... 50

a) Branch Assigned for Audit

We have been appointed as the Statutory Auditors of the ……………………… Branch of

b) Audit Acceptance Letter

An engagement letter has been issued and kept in Appendix 2

d) Letter of communication with previous auditor

Communication to the previous auditor M/s ………………………….. has been sent on

2. Key Reports and Certificates

a) The following key reports / certificates are required to be issued by us

 Branch Auditors report

3. Audit Instructions and Team

Name Designation Days From To

Qualified Paid Assistant

Designation Name Grade

4. Report, Returns and Certificates

38 Long Form Audit report

39 Tax audit report

Final Audit Notes

5. Final Notes for Attention of Partner

a) Scope Limitations, if any

Information requested Amount Impact on audit, Management Comments

Information Amount Impact on audit, if any Management Comments

b) Significant Audit Notes

 Qualification in audit report

Matters for Consideration Impact Final

Management Representation letter has been obtained and kept in Appendix 4

d) Schedules initialed for Identification Purposes

Part C – Audit Planning

a) RBI Master Circular

b) Audit Guidance provided by the bank

c) Audit reports of the previous year

d) Various Audits / review reports / inspections conducted by the bank / RBI

e) Guidance Note on Bank Audits

f) Auditing Review and Other Standards

CONDUCT OF AN AUDIT IN ACCORDANCE WITH STANDARDS ON

SA705 MODIFICATIONS TO THE OPINION IN THE INDEPENDENT AUDITOR’S

SA710 COMPARATIVE INFORMATION— CORRESPONDING FIGURES AND

COMPARATIVE FINANCIAL STATEMENTS.