Bank Audit Services in India

What is a Bank Audit?

A Bank Audit is an independent examination of the financial statements, operations, and compliance of a bank or its branches.
It is conducted to ensure that banking activities are carried out in accordance with the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) guidelines, and other applicable laws.
Bank audits are usually carried out by Chartered Accountants empaneled with RBI.

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Types of Bank Audits

1. Statutory Audit of Banks
   • Mandated by the RBI to review the annual financial statements of banks.
   • Conducted at both Head Office and Branch levels.
2. Concurrent Audit
   • A real-time, continuous audit to detect irregularities immediately.
   • Ensures adherence to systems and procedures.
3. Internal Audit
   • Conducted by the bank’s internal team or outsourced auditors to check internal controls.
4. Revenue Audit
   • Focuses on checking income leakage and accuracy of interest/charges.
5. Stock Audit for Banks
   • Conducted to verify the value and quality of stock pledged against loans.

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Objectives of Bank Audit

• Ensure accuracy and reliability of financial statements
• Check compliance with RBI norms, KYC/AML guidelines, and statutory provisions
• Detect fraud, mismanagement, or operational inefficiencies
• Verify loan documentation and asset classification (NPA identification)
• Assess the bank’s provisioning and capital adequacy
• Strengthen internal controls and risk management

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Scope of Bank Audit

• Examination of cash, deposits, loans, and advances
• Review of NPA classification and provisioning
• Verification of interest income, fees, and commissions
• Scrutiny of large advances and stressed assets
• Checking compliance with Basel norms and RBI circulars
• Reviewing foreign exchange transactions (for authorized dealer branches)
• Ensuring proper documentation for secured loans
• Identifying frauds, irregularities, and systemic weaknesses

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Documents Required for Bank Audit

• Trial balance and general ledger
• Loan and advances register with supporting documents
• NPA statements and provisioning calculations
• Cash and deposit registers
• Fixed asset register
• RBI inspection reports and compliance status
• Board and committee meeting minutes
• Returns filed with RBI and other regulators

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Benefits of Bank Audit by Calculus

• Ensures compliance with RBI and statutory requirements
• Enhances trust among stakeholders and depositors
• Identifies operational gaps and financial risks early
• Prevents fraud and income leakage
• Improves loan portfolio quality and recovery process

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Why Choose Calculus for Bank Audit?

• Experienced team of auditors empaneled with RBI
• In-depth knowledge of banking regulations and audit procedures
• Strong focus on fraud detection and compliance improvement
• Timely completion of audits with detailed, actionable reports
• Ethical, independent, and confidential approach

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