During the course of statutory branch audit of a nationalized bank, CA Amrish is performing audit procedures in relation to the advances. He has…

CA Intermediate · Auditing and Ethics · MTP · September 2024
During the course of statutory branch audit of a nationalized bank, CA Amrish is performing audit procedures in relation to the advances. He has verified the selected sample of borrower accounts representing advances and found nothing unusual. In a banking environment, there exist documentary evidence containing observations/comments on advances which can be useful to the statutory branch auditor in performing an effective audit. List out few such documentary evidence which can be made use of by CA Amrish.

Suggested Answer and Working Notes:

In a banking environment, there exist documentary evidence containing observations/comments on advances which can be useful to the statutory branch auditor in performing an effective audit. CA Amrish, the auditor should take into account the adverse comments, if any, on advances appearing in the following:- Previous year's audit reports.Latest internal inspection reports of bank officials.Reserve Bank's latest inspection report.Concurrent / Internal audit report.Report on verification of security.Any other internal reports specially related to particular accounts.Manager's charge-handing-over report when incumbent is changed.

Topics: Audit of Banks

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