Bank Audit Finalisation of the LFAR

 

Account should be mentioned. The items of double response in Head office Account should also be reported.

  • The report will also give old/large outstanding debit entries as at the year end which remains unexplained.

Audits/Inspections

  • The auditor should review the audit reports for concurrent audit, RBI inspection special audit, internal audit, credit audit, and find out whether they are complied properly. While finalising the report the auditor should consider the major adverse comments arising out of these reports.

Frauds

  • The auditor should peruse the fraud Register and report particulars of Frauds discovered during the year under audit at the branch.
  • The auditor can also give suggestions to minimise the possibility of their occurrence.

Miscellaneous

  • The auditor should mention about the adequacy of control and maintenance of records in relation to the Fixed Assets at the branch. The Fixed Asset Register should be updated.
  • The calculation of depreciation should be checked properly and any deviation should be reported.
  • The auditor should also check on the impairment of the assets.
  • The auditor should report whether examination of accounts indicate possible window dressing. The auditor should review the transactions near to the balance sheet date to look into the possibility of window dressing in the account.
  • The auditor can also mention any other matter which he would like to bring to the notice of the management or Central Statutory Auditors.

Questionnaire Applicable to specialised branch

  • Now a day the banks prefer to have branches on the basis of specalised functions such as branches having foreign exchange transactions, branches for large advances Asset Recovery, Management Branches, Service Branches, The LFAR also provides separate questionnaire for audit of such specialised branches. The auditor is supposed to report additionally as per applicable questionnaire.

While answering these questionnaires, the auditor should understand the functions and working of these branches properly and use his

Suggested list of Relevant RBI Master
Circulars for Scheduled Commercial Banks

(Note: The following is only a suggested list and not an exhaustive list)

S. N. Circular No. Date Subject
1. RBI/2014-2015/74

DBOD.No.BP.BC.9/21.04.048/2014-15

1.7.2014 Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances
2. RBI/2014-2015/75

DBOD No BP.BC.20/21.04.141/2014-15

1.7.2014 Prudential norms for classification, valuation and operation of investment portfolio by banks
3. RBI/2014-2015/64

DBOD.No.Dir.BC. 16/13.03.00/2014-15

1.7.2014 Loans and Advances-Statutory and Other Restrictions
4. RBI/2014-2015/65

DBOD.No.Dir.BC.13/13.03.00/2014-15

1.7.2014 Interest Rates on Advances
5. RBI/2014-2015/59

DBOD.BP.BC.No. 10/21.04.172/2014-15

1.7.2014 Bank Finance to Non-Banking Financial Companies (NBFCs)
6. RBI/2014-2015/66

DBOD.No.Dir.BC. 12/13.03.00/2014-15

1.7.2014 Exposure Norms
7. RBI/2014-2015/60

DBOD.BP.BC No.8/21.04.018/2014-15

1.7.2014 Disclosure in Financial Statements- Notes to Accounts
8. RBI/2014-2015/67

DBOD.No.Dir.BC. 17/13.03.00/2014-15

1.7.2014 Guarantees and Co-acceptances
9. RBI/2014-2015/98 IDMD.PCD. 03/14.01.01/2014-15 1.7.2014 Call/Notice Money Market Operations
10. RBI/2014-2015/91

DBOD.No.Ret.BC. 11/12.01.001/2014-15

1.7.2014 Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
11. RBI/2014-2015/58

DBOD.No.FSD.BC.02/24.01.009/2014-15

1.7.2014 Credit Card, Debit Card and Rupee Denominated Cobranded Prepaid Card operations of banks
12. RBI/2014-2015/57

DBOD. No.FSD.BC.01/24.01.001/2014-15

1.7.2014 Para-banking Activities
13. RBI/2014-2015/76

DBOD.No.BP.BC.4/21.01.002/2014-15

1.7.2014 Prudential Norms on Capital Adequacy-Basel I Framework
14. RBI/2014-2015/90

DBOD.No.BP.BC.5/21.06.001/2014-15

1.7.2014 Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF)
15. RBI/2014-2015/14

Master Circular No. 3/2014-15

1.7.2014 Memorandum of Instructions for Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses
16. RBI/2014-2015/68

DBOD. No.DIR.BC. 18/08.12.001/2014-15

1.7.2014 Housing Finance

www.icai.org

THE CHARTERED ACCOUNTANT MARCH 2015 123

 

 

S. N. Circular No. Date Subject
17. RBI/2014-2015/101

Ref.MPD.No.373/07.01.279/2014-15

1.7.2014 Export Credit Refinance Facility
18. RBI/2014-2015/84

RPCD.No.FSD.BC 07/05.04.02/2014-15

1.7.2014 Guidelines for Relief Measures By Banks in Areas Affected by Natural Calamities
19. RBI/2014-2015/85

DBS.CO.CFMC.BC.No. 1/23.04.001/2014-15

1.7.2014 Frauds-Classification and Reporting
20. RBI/2014-2015/70

DBOD. AML. BC. No. 22/14.01.001/2014-15

1.7.2014 Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT)/ Obligation of banks under PMLA, 2002
21. RBI/2014-2015/63

DBOD.No.Dir.BC. 15/13.03.00/2014-15

1.7.2014 Interest Rates on Rupee Deposits held in Domestic, Ordinary Non- Resident XRO) and Non-Resident (External NRE) Accounts
22. RBI/2014-2015/82

RPCD.CO.RRB.BC.No.5/03.05.33/2014-15

1.7.2014 Lending to Priority Sector
23. RBI/2014-2015/93 RPCD.MSME & NFS.BC.No. 3/06.02.31/2014-15 1.7.2014 Lending to Micro, Small & Medium Enterprises (MSME) Sector
24. RBI/2014-2015/73

DBOD No.CID.BC.3/20.16.003/2014-15

1.7.2014 Wilful Defaulters
25. RBI/2014-2015/69

DBOD No.DIR.BC. 19/04.02.002/2014-15

1.7.2014 Rupee/ Foreign Currency Export Credit m Customer Service to Exporters
26. RBI/2014-2015/61

RPCD.FID.BC.No.06/12.01.033/2014-15

1.7.2014 SHG-Bank Linkage Programme
27. RBI/2014-2015/62

DBOD.No.Dir.BC. 14/13.03.00/2014-15

1.7.2014 Instructions relating to deposits held in FCXR(B) Accounts
28. RBI/2014-2015/99 IDMD.PCD. 05/14.01.03/2014-15 1.7.2014 Guidelines for Issue of Certificate of Deposit
29. RBI/2014-2015/100 IDMD.PCD.04/14.01.02/2014-15 1.7.2014 Guidelines for Issue of Commercial Paper
30. RBI/2014-2015/71

DBOD.AML.BC.No.-23/14.08.001/2014-15

1.7.2014 Guidelines issued under Section 36(1 a of the Banking Regulation Act, 194v-Implementation of the provision’ of Foreign Contribution (Regulation Act, 2010
31. RBI/2014-15/95

RPCD.CO.Plan.BC 10/04.09.01/2014-15

1.7.2014 Priority ctor Lending-Targets and Classification
32. RBI/2014-15/103

DBOD.No.BP.BC.6/21.06.201/2014-15

1.7.2014 Basel III Capital Regulations
33. RBI/2014-15/72

DBOD No.Leg.BC.21/09.07.006/2014-15

1.7.2014 Customer Service in Banks

 

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