You have been appointed as Concurrent auditor of a branch of Silver Bank Ltd., which primarily deals in foreign exchange transactions. During the…

Suggested audit procedure to be covered by the Concurrent Auditor to check the foreign exchange transactions of a branch of Silver Bank Ltd. is given hereunder: Check foreign bills negotiated under letters of credit.Check FCNR and other non-resident accounts whether the debits and credits are permissible under rules.Check whether inward/outward remittance have been properly accounted for.Examine extension and cancellation of forward contracts for purchase and sale of foreign currency. Ensure that they are duly authorized and necessary charges have been recovered.Ensure that balances in Nostro accounts in different foreign currencies are within the limit as prescribed by the bank.Ensure that the overbought/oversold position maintained in different currencies is reasonable, considering the foreign exchange operations.Ensure adherence to the guidelines issued by RBI/HO of the bank about dealing room operations.Ensure verification/reconciliation of Nostro and Vostro account transactions/ balances.