Workbook Bank Statutory Branch Auditors By Ishwar Chandra
Workbook Bank Statutory Branch Auditors By Ishwar Chandra
This practical workbook, i.e. work programme cum audit notebook, is a one-stop reference for bank branch auditors providing a systematic audit approach and procedures. Overall, the aim of the workbook has been to provide an efficient and effective approach for accomplishing branch auditing, simultaneously documenting the audit work.
This workbook contains a five-staged approach:
- Acceptance of Audit
- Planning the Audit
- Conducting the Preliminary Audit
- Conducting the Final Audit
- Reporting the Audit
In each stage, the audit approach and procedures have been suggested in accordance with the RBI Norms and ICAI Standards on auditing.
This book is helpful for branch auditors in accomplishing their branch audit more purposefully & bringing more comfort to the Statutory Central Auditors, Boards and Management.
The Present Publication is the 7th Edition & amended up to 24th February 2023. This book is authored by CA Ishwar Chandra, with the following noteworthy features:
- [RBI’s Extant Notifications/Circulars & Audit Procedures] each chapter has been divided into two paragraphs. In the first paragraph, RBI’s extant notifications /circulars have been discussed to help acquaint them with relevant legal/regulatory guidelines. While in the next section, audit procedures have been suggested
- [References of RBI Notifications & ICAI Standards on Auditing] have been given below the audit procedures
- [Audit Hints for Technology Environment of Banks], i.e., Finacle, B@NCS and Flexcube have been given
- [LFAR Procedures] contain ‘what’ and ‘how’ to evaluate and ‘how’ to report. For reporting help, audit comments have been illustrated
- [CBS Environment] An entire chapter has been devoted to the useful system-generated reports for branch auditing in CBS environments, along with relevant commands/shortcuts and menus/navigations
- [Examples for Independent Bank Branch Auditors’ Report] for forming different forms of audit opinions and memorandum of changes (MOCs) have been suggested
- [SBA Formats] To collect and evaluate the information in each stage, audit templates/SBA Formats have been suggested
- The structure of the book
- In the initial chapters, pre-acceptance, post-acceptance and planning procedures are given
- Subsequent chapters devoted to the bank branch auditing, which are as follows:
- Audit of New Advances, including Audit of Credit Monitoring
- Audit of Special Mention Accounts (SMAs)
- Audit of IRACP and Resolution of Stressed Assets
- Audit of Financial Statements
- LFAR Procedures
- Audit Procedures of Capital Adequacy Norms
- Audit Procedures for Special-purpose Certifications
- The book includes two appendices, Appendix – A and Appendix – B
- In Appendix – A (24 Nos.), audit templates (SBA Formats) have been provided to help ‘seek’ and ‘obtain’ information and to evaluate the information obtained.
- In Appendix – B, various notifications (e.g. RBI Circulars and ICAI Standards) are appended for quick reference of branch auditors
The contents of the book are as follows:
- Introduction to Audit of Financial Statements
- Pre-Acceptance Procedures
- Post-Acceptance Procedures
- Planning Considerations
- CBS Environment | Useful System-Generated Reports
- Offsite Planning
- Onsite Planning
- Performing Preliminary (Routine) Audit Procedures
- Audit of New Advances
- Audit of Credit Monitoring
- Audit of Special Mention Accounts (SMA)
- Audit of Income Recognition and Asset Classification
- Audit of Provisioning
- Audit of Resolution of Stressed Assets
- Performing General Ledgers (GL) and Profit & Loss (PL) Audit Procedures
- Long Form Audit Reporting (LFAR) Procedures
- Audit of Capital Adequacy
- Special-Purpose Certification Procedures
- Issuing Independent Branch Auditors’ Report
About the Author
Born on 10th February 1969, commerce graduate from St. John’s College Agra, Ishwar Chandra is a Fellow Member of the Institute of Chartered Accountants of India (ICAI). He has been a Chartered Accountant practising since 1993 and is Partner in M/s. IC & Associates, Agra. He holds DISA from ICAI and CISA from Information Systems Audit & Control Association (ISACA) USA. He holds Certificates in IFRS, Forensic Accounting and Fraud Detection (FAFD) and Concurrent Audit of Banks.
Mainly practising auditing, his significant work experience includes Concurrent Audit, IS Audit, Stock Audit, Income & Expenditure Audit and External Audit of various Commercial, Regional Rural and Co-operative Banks and Internal & External Audit and other assignments of PSUs.
His approach and procedures articles on auditing of banks have been published in ‘The Chartered Accountant’ Journal of ICAI. He is the author of Five C’s of IT Policy published in ‘Internal Auditor’, of the Institute of Internal Auditors, (USA). He has been one of the Subject Matter Expert (SME) Reviewers of ISACA’s CISA Review Manuals (26th and 27th Editions) and contributes to IS auditing to ISACA. He has participated in the International Federation of Accountants (IFAC) consultation paper ‘Improving Auditor Reporting’.
In his 29 years of professional career, he has delivered several lectures on auditing of banks at ICAI seminars organized by CIRC, SIRC and NIRC branches/study circle. He has been associated with various Boards/Committees of ICAI. He has been a member of a Financial Reporting Review Group constituted by the Financial Reporting Review Board (FRRB) of ICAI and has acted as a lead reviewer. He is associated with FRRB as Technical Reviewer (TR) and with the Peer Review Board of ICAI as Peer Reviewer. He is associated with the Committee on Capital Markets and Investors’ Protection (CCMIP) of ICAI as a Resource Person. His academic associations also include the Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India. He is a founder trustee of Shri Rajendra Prasad Munni Devi Agrawal Memorial Trust, a registered public charitable trust.
Articles by the same author Published in “The Chartered Accountant” Journal of ICAI
- ‘What Every Statutory Branch Auditor of a Bank Should Do’, Vol. 64 No. 9, March 2016
- ‘Essentials of Report Writing’, Vol. 61 No. 2, June 2013
- ‘Statutory Bank Branch Audit: Strengthening Audit Plan’, Vol. 61 No. 9, March 2012
- ‘Conducting Statutory Branch Audit in CBS Environment: An Approach’, Vol. 61 No. 9, March 2012
- ‘Improving Risk Management and Compliance’, Vol. 56 No. 11, May 2008
- ‘Planning the Statutory Branch Audit: An Approach’, Vol. 56 No. 9, March 2008
- ‘Auditing in Core-Banking Environment: Some Special Considerations’, Vol. 55 No. 9, March 2007
- ‘KYC & Anti Money Laundering Measures’, Vol. 55 No. 3, September 2006
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