Bank Audit Check List & Procedure

The Bank Audit Check List & Procedure.

Details related Bank Audit Check List
Point Related to Documents Verification
Sl No.	Particulars	Yes/No	Check By	Reviewed by	Remarks
1	Latest sanction letter of the bank providing facilities
2	Latest stock statement
3	Stock statements for the months covering audit period including stock statements certified by Chartered Accountant
4	Stock statement for the month of March of preceding previous year
5	Audited Financial Statements for 2 previous years
6	Tax Audit Report for 2 previous years
7	Bank statement of all the banks for the audit period
8	Books of Accounts for the audit period (Debtors, Creditors and stock from their accounting software, say “Tally”)
9	Stock register
10	GST returns for audit months covering audit period. (GSTR-1,3B, 9)
11	Insurance documents (effective in the audit period)
12	Challans of statutory compliances for the months covering audit period (Income tax, EPF, ESIC, TDS)
13	Trial Balance as on 31st March of previous year
14	Trial Balance or Provisional Balance Sheet as on the date of inspection
15	Eight invoices of good amount each of purchases and sales along with e-way bill. In case of import, take Bill of Entry
Point Related to Credit Audit
Sl No.	Particulars	Yes/No	Check By	Reviewed by	Remarks
1	All fresh proposals and proposals for renewal of limits (within 3 – 6 months from date of sanction)
2	All existing accounts with sanction limits equal to or above a cut off depending upon the size of activity
3	Valuation of Collateral Security must not be older than 3 years
4	Purpose of the Loan taken and End use of the same
5	Check Positions of Account of facility availed by the Borrower on the date of Credit Audit
6	Inspection is being carried out by Branch on Interval basis
7	Whether LSR certifies the mortgaged properties are free from all encumbrances.
8	Check whether Security is underinsured or not?
9	Asset Classification of the account of facility availed by the Borrower.
10	Check Facilities sanctioned by the Branch to Group Companies/ Associates and irregularity observed in the same
11	Latest Sanction/ Latest Renewal Documents ar complete  in Banking records
12	Check whether Charge has been Created or modified with ROC for the facility availed
13	Check Whether Cersai on the Immovable property has been created
Point Related to Debtors Verification
Sl No.	Particulars	Yes/No	Check By	Reviewed by	Remarks
1	Go through the sanction letter
2	Go through latest stock statement
3	Ask for the latest stock statement on the date of visit
4	Method of procurement
5	Maintenance of records
6	Policy for issue of stock from stores
7	Method of valuation of stock
8	Maintenance of QIS & Fund Flow statement
9	Procedure in respect of Rejected goods
10	Frequency of physical inspection of goods by borrower
11	Bin card system adopted
12	Goods sent for Job Processing
13	Goods received for Job Processing
14	If yes, it is shown separately & not included in stock statement
15	Stock-In and Out register maintained & checked
16	Security guards available at location
17	CCTV camers put in place
18	Fire extinguishers put in place
19	ABC analysis done for the stock
20	Physical stock tallied with stock statement
21	Check the condition and location of storage
22	Verified the insurance documents and its adequacy
Point Related to Stock Verification
Sl No.	Particulars	Yes/No	Check By	Reviewed by	Remarks
1	Compare the values of Stock as on 31st of march of previous year with corresponding date in stock statement.
2	Compare the values of Debtors as on 31st of march of previous year with corresponding date in stock statement.
3	Compare the values of Creditors as on 31st of march of previous year with corresponding date in stock statement.
4	Report the related parties transaction
5	Compare the value of stock reported in Tax audit report with the stock statement
6	Check other irregularities in Statutory Audit report
7	Check other irregularities in Tax Audit report
Point Related to Bank Statement verification
Sl No.	Particulars	Yes/No	Check By	Reviewed by	Remarks
1	All the payment for purchases and direct expenses are made fro CC account
2	All the receipts from debtors are received to CC account
3	Loan outstanding amount more than sanctioned limits on any day
4	Whether the borrower is not utilizing his sanctioned limits
Point Related to Debtors Verification
Sl No.	Particulars	Yes/No	Check By	Reviewed by	Remarks
1	Check the age of debtors sanction by Bank in sanction letter
2	Check the value of debtors last reported in stock statement
3	Verified the sales with GST returns and books of accounts
4	Calculate the age of debtors
5	Check the transaction with related parties
6	Check whether to include or exclude related party sales as per sanction letter
7	Provision has been made for doubtful debts
8	Confirm with the borrower about the bad debts and doubtful debts
9	Verify the sales made to debtors with invoices
10	Verify the sales made to debtors with books of accounts
11	Verify the sale proceeds are received from debtors to the bank accounts
12	Verify the sale proceeds are received to the CC Account
13	Verify if sale proceeds are routed through other bank accounts
14	Check carefully cash sales (if any)
15	Check GSTIN of Top 10 debtors of Borrower
Point Related to creditors Verification
Sl No.	Particulars	Yes/No	Check By	Reviewed by	Remarks
1	Verify the value of creditors with books of account and stock statement
2	Verify purchase with GST returns
3	Verify all the Cash purchases (if any)
4	Only Creditor for the purchase of stock and direct expense should be consider for value of paid stock
5	Payment to creditors are made from CC bank account
6	Verify purchase made to creditor with invoices
7	Verify purchase made to creditor with books of accounts
8	Verify GSTIN of top 10 creditors
Other Verification Point
Sl No.	Particulars	Yes/No	Check By	Reviewed by	Remarks
1	Took pictures of stock verified with GPS Map Camera
2	Took pictures of any irregularity observed
3	Whether Bank’s Hypothecation Board is displayed at borrower’s location or not
4	Took picture of the hypothecation borad (if displayed)
5	Took all the necessary evidences

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