Online Statutory Audit of Banks in Lockdown

Online Statutory Audit of Banks in Lockdown

Today we will discuss important topics for all our chartered accountant fertility to how to conduct the Online Statutory Audit of banks in Lockdown period. In this, we will discuss what are the Documents required for the statutory bank audit also how to do the statutory bank audit planning and finalization.

 Attend the Online seminar

Try to attend the online seminar organized by the ICAI and various banks to recall all the provisions and the things. Also, engage your staff in the seminar

Documents required for the statutory bank audit

1. Last year LFAR Report
2. Auditor Login ID and password
3. Dumps of CC/OD Account For Ledger Scrutiny
4. Complete details of the Loan more than 2 crore
5. Dumps Of expenses Accounts For Checking provisioning
6. Excess Over Limit Report
7. Customer-wise Interest paid and TDS Report
8. Details of Overdue term deposit
9. Suspense Report
10. GST -Input Tax Credit report
11. Fixed Assets Addition Report
12. Daily Cash balance /cash Retention report
13. List of Customer-wise Loan Sanction and there Outstanding Loan Balance as on 31st March 2020
14. List of Customer-wise Loan – Sanction Amount Vs O/s as on 31.3.20
15. NPA Provisioning Report
16. Current year Format of LFAR, Tax Audit etc.
17. Concurrent Audit Report if applicable
18. RBI Report if any conducted
19. Insurance expiry report from the banks
20. Stock Audit Report

Statutory bank Audit Planning

After getting the documents An Auditor can plan the things at home.

1. Critically read all the reports of the banks like last year LFAR, Concurrent, RBI etc.
2. Critically examine the Loan accounts and give the list to the banks’ file name that you will be needed for the purpose of audit. You can click on below link to https://taxbaniya.com/guidance-note-on-bank-audit-of-od-and-cc-accounts/
3. You can check the NPA Provisioning report whether all assets have been correctly classified and provision has been made accurate. Critically examine the OD/CC provisioning if any drawing power is NIL than make 100% provision in that accounts.

For complete guidance click on the below link – http://taxbaniya.com/statutory-audit-of-bank-advances-and-npa/

4. The auditor can ask for the customer ledger in that he can check

• If any account is NPA whether interest is charged or not.
• In Term and home loan whether installment is paid regularly. If not paid more than 90 days to account become NPA
• In Working capital whether the transaction is happening in an account or not.

Finalization of Statutory bank Audit

1. If your branch is located in the containment area than request the manager to give access to the branch near your home.
2. Avoid physical verification of cash and put a note in LFAR- Due to COVID we are unable to verify the cash
3. Avoid physical verification of the stationary and put a note in LFAR- Due to COVID we are unable to verify the stamp and stationery
4. Digitally signed the Report and Email to the bank