Bank Audit Services India | Virtual Auditor

Bank Audit — A Specialised Engagement

Bank audit engagements are governed by the Reserve Bank of India's Master Directions, the Banking Regulation Act 1949, and the auditing standards under the Standards on Auditing (SA 200-705) framework. Our practice covers Statutory Branch Audit, Concurrent Audit, Stock Audit, Revenue Audit, and Forensic Audit assignments for public-sector banks, private-sector banks, and NBFCs.

Statutory Branch Audit

The Statutory Branch Audit covers IRAC (Income Recognition and Asset Classification) compliance, NPA classification accuracy, provisioning under prudential norms, KYC/AML compliance, advances classification, deposits reconciliation, fixed asset verification, and the Long Form Audit Report (LFAR). The audit must be completed within the timeline set by the bank's central statutory auditor — typically March 1 to April 15 — with strict reporting discipline. Empanelment with the Comptroller & Auditor General (C&AG) for PSU bank audits and with private sector banks is a multi-year qualification process.

Concurrent Audit

Concurrent audit is a continuous review — typically monthly — of high-volume bank branches and high-risk operations. The scope covers: cash management, vault operations, advances disbursement, document verification, NPA-tracking, deposits, foreign exchange transactions, and exception reporting. Concurrent auditors file monthly reports to bank management with observations on operational lapses, control weaknesses, and recovery actions.

Stock Audit and Drawing-Power Verification

For working-capital-financed corporate borrowers, banks require quarterly or half-yearly stock audits. The audit verifies physical inventory (raw materials, WIP, finished goods, stores), reconciles to the borrower's accounting records, computes the Drawing Power (DP) under the bank's hypothecation policy, and certifies the limit utilisation. Our stock audit reports are accepted by leading consortium-bank arrangements.

Forensic Audit and Fraud Investigation

Where IRAC classification, account conduct, or end-use of funds is in question, forensic audit under RBI Master Directions on Frauds is required. Our CFE-led forensic team is empanelled with multiple banks for forensic audit assignments. The forensic audit report addresses end-use verification, fund-flow tracking, related-party transaction analysis, and the existence of preferential or undervalued transactions. Reports are designed for use under the IBC, prevention-of-corruption proceedings, and SARFAESI/recovery-court litigation.

Empanelment and Engagement

We are empanelled with leading public-sector and private-sector banks for branch audit, concurrent audit, stock audit, and forensic audit assignments. Engagement scoping is on fixed-fee basis with detailed timelines, deliverable specs, and named partner ownership. Free 30-minute consultation: +91 99622 60333.