Bank Branch Audit – Audit Planning. CA. Rashmikant C. Thakkar email@example.com / firstname.lastname@example.org (M) 09879447009 BARODA BRANCH OF WIRC OF ICAI. Need for Planning :. Primary Objective of Audit – to ensure that Annual Accounts of the Branch give a True and Fair View.
CA. Rashmikant C. Thakkar
BARODA BRANCH OF WIRC OF ICAI
a)Evaluation of the Accounting and Internal Control System.
1.Inspection e.g. Vouching.
3.Inquiry & confirmation e.g. Confirmation of Bank Balances
4.Computation e.g. Interest Calculations.
5. Analytical Procedureslike Comparisons- Ratio Analysis etc.
Following certificates should be obtained from Branch Management:
As per section 30(3) of a Banking Regulation Act,1949; an auditor of a banking company is required to state in his report :--
(a) whether or not the information and explanations required by him have been found to be satisfactory;
(b) whether or not the transactions of the company which have come to his notice have been within the powers of the company;
(c) whether or not the returns received from branch offices of the company have been found adequate for the purposes of his audit (not applicable to bank branch)
(d) whether the profit and loss account shows a true balance of profit or loss for the period covered by such account;
(e) any other matter, which he considers should be brought to the notice of the shareholders of the company.
Distinct Feature of Bank Branch Audit: Memorandum of Changes (MOC)
In other audits, normally errors found during the audit are modified/ given effect in the books of accounts and modified financial statements are prepared; But, in case of banks, by the time, the branch audit is completed, there is compilation of data at regional and zonal level hence, any modification in the financial statements is given effect through MOC. The main report must state about this and shall also mention whether MOC is NIL or it contains any items affecting the financial statements or Statement of Advances.