As the FY 2015-16 ends and the countdown starts for the Banks Audit. 1st April reminds chartered accountants to revise the check list, last year bank audit reports and many things which they left unchecked last year. So out team has decided to prepare to 10 things you must consider while Bank Audits. We have seen that most of the youngster Chartered Accountants searched on google about the check list for Bank Audit, Step by Step bank audit process, Process for bank Audit, Complete details regarding Bank Audit, how to conduct concurrent audits for Bank and many more. So this post is just for you.

  1. Start with Basics

The first basic principle of Bank Audit is to check the basic information about the customers of the Bank. The best way to check the same is to vouch the self-attested customer’s identity proofs. By doing so you will be able to know whether your customers are really genuine or fake accounts.

  1. Statutory Compliances

Like any other assesse banks are also bound to other statutory liabilities such as Income Tax, Service Tax etc.  You can check whether Bank has regularly deducted TDS on interest paid to customer and deposited the same before the due dates. Also check whether the bank has also charged Service Tax at appropriate rates.

  1. Penal Interest

Check whether bank is appropriately charging Penal Interest for Non submission of Stock Statements, FFR Reports etc. as per the circulars issued for the banks.

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  1. Check Unusual Transactions

Get the report for unusual transaction from the banks software and do in-depth study of the same.

  1. Surprise Cash Verification

It would be necessary in every bank audit to do a surprise cash verification. Also check whether cash counting machines are working properly.

  1. Top Customer

Check the list of Top Customers as most of the embezzlement found in the accounts of top customers only.

  1. Checking Previous Audit reports

Before starting the Bank Audit, you must recheck the last years bank audit reports. There is catch in reading the previous audit reports as it has been seen that banks mostly repeat the same errors in current year as in last year.

  1. Vouching

After adopting the smart work don’t forget the importance of vouching as this may help you to understand the working of the bank in depth.

  1. Renewal of Sanctions

Bank sanction needs to be renewed every year on the basis of latest documents received from the customers. Check the same and report for non-renewal of sanctions.

10      Other Internal Controls

Among other things check internal controls for issuing of check books, demand drafts etc.