GUIDELINES ON CONCURRENT AUDIT

1. Preamble:
Concurrent Audit is an examination, which is contemporaneous with the occurrence of transactions or is carried out as near thereto as possible. It attempts to shorten the interval between a transaction and its examination by an independent person. This audit is essentially a management process ensuring sound internal accounting functions and effective controls and setting the tone for a vigilant internal audit to preclude the incidence of serious errors and fraudulent manipulations. A concurrent auditor may not sit in judgment on decisions taken by a Branch Manager or an authorized official. This is beyond the scope of concurrent audit. However, the auditor will necessarily have to see whether the transactions or decisions are within the policy parameters and guidelines laid down by Head Office, that they do not violate the instructions or policy prescriptions of the RBI/ H.O, and that they are within the delegated authority.

2. Scope of Concurrent Audit:
1. Areas covered in the Bank’s standard formats for Concurrent Audit specifies the scope of concurrent audit. Concurrent Audit is to be carried out in accordance with the extant guidelines of the Bank. Concurrent Auditors would examine all the transactions undertaken by a branch for which they have been appointed on an on going basis and identify the ones which are not as per bank’s laid down rules/ circulars etc. and guidelines/ instructions received from authorities like, Govt. of India, Reserve Bank of India & SEBI etc. from time to time. 2. Every quarter Concurrent auditor would also check if there is any wide variation in the cost of deposits and yield on advances with the previous periods as well as Zonal average figures.

3. Requirements From Audit Firms:
1. Concurrent Auditors shall be required to get rectified all the irregularities identified by them