Statutory Bank Audits are conducted to examine the financial statements of banks and their branches and to express an opinion on whether they present a true and fair view in accordance with the applicable financial reporting framework and the guidelines issued by the Reserve Bank of India.
Scope of Bank Audit
The audit covers:
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Verification of assets, liabilities, income and expenditure
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Review of advances, deposits and other banking operations
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Assessment of income recognition, asset classification and provisioning (IRAC norms)
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Evaluation of internal controls and compliance with RBI directives
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Examination of inter-branch and inter-bank reconciliations
Key Focus Areas
Particular attention is given to:
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Large and sensitive advances
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Non-performing assets and provisioning
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Treasury and foreign exchange operations
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Compliance with regulatory returns and reporting
Reporting
The audit results in the statutory auditor’s report together with the Long Form Audit Report (LFAR) and other certificates required by the RBI and the bank’s management.