Following is the extract from Schedule no. 10 of Advances as appearing in financial statements of branch of a nationalized bank for year ending 31st…

In carrying out audit of advances, the auditor is primarily concerned with obtaining evidence about the following: - Amounts are included in balance sheet in respect of advances which are outstanding at the date of the balance sheet.Advances represent amount due to the bank branch.Amounts due to the bank branch are appropriately supported by loan documents and other documents as applicable to the nature of advances.There are no unrecorded advances.The stated basis of valuation of advances is appropriate and properly applied and the recoverability of advances is recognised in their valuation.The advances are disclosed, classified and described in accordance with recognised accounting policies and practices and relevant statutory and regulatory requirements.Appropriate provisions towards advances have been made as per the RBI norms, Accounting Standards and generally accepted accounting practices.