Bank Audit Check List & Procedure
Table of Contents
The Bank Audit Check List & Procedure.
Details related Bank Audit Check List |
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Point Related to Documents Verification |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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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