Introduction

Type of Audit
1 Statutory Audit
2 Concurrent Audit
3 RBI Audit
Principles Enactments Government Bank Audit
Stages of Auditing
Provision Relating to Audit
List of Documents of Bank Audit
Audit Planning
Audit aspect of items of Balance sheet
Audit aspect of items of of Profit & Loss
Asset Classification
Audit Report of HDFC Bank
Conclusion

INTRODUCTION

This project is to view the task perform by an auditor while conducting the audit of bank
deposit and loans & advances. It explains the role played by different types of auditor,
effect of Non-Performing Asset on the asset of a bank. The auditor needs to be
familiarizing with the direction of RBI affecting the sanctioning and disbursement of
advances. The auditor has to ensure that documents are executed as per the terms of
sanction. The auditor examine the procedure for review of advances laid down by the
authorities bas been complied with or not. Basel II Recommendations affecting the
capital adequacy norms advocated by the year, which perhaps is the beneficial fall-out
from the tightening of the prudential norms. The auditing not only provide true and fair
value but it also helps us to financial position and internal control system of a bank

It is well known that Banking is such a unique industry that persons from all walks of
involved with Banks in any relation whether as an operational banker, trainer, auditor or
even a support service person such as a security printer and even a hardware and software
supplier make Banking their only sphere of activity for their full life in the constant

endeavor to master in their for this Industry. In India various types of audit are normally
carried out in banking companies such audit are statutory audit, revenue/income
expenditure audit, concurrent audit, computer and system audit etc. the above audit is
mainly conducted by the banks own staff or external auditors. However, the rules and the
regulation relating to the conduct of various types of audit or inspection differ from a
bank to bank except the statutory audit for which the RBI guidelines is applicable for
that. In this project I give more important on the concurrent and computer audit and its
internal controls in the banks todays scenario. Today audit is form in the various
organizations it is basically form for investor because investor investing decision is
depend on that particular concept if auditor has expressing his view about particular
organization is true and fair that investor has get idea about how much should invest in
particular securities or not. In public sector banks multiple firms including central
auditors and branch auditors generally conduct the audit.

In case of private sector banks and foreign banks, a single firm due to centralised
database conducts the audit. Consequently, the responsibilities of auditors in such banks
are much wide TYPES OF AUDITS
TYPES OF AUDITS
The following are the popular types of audits conducted in a bank branch. The titles may
be modified in some banks especially for Internal Audit and system Audit but the content
remains the same
I. Statutory Audit
This is an annual audit determined by statute and done normally at the end of the
financial year while some of the larger branches are similarly audited half yearly. A
banks statutory audit is essentially a balance sheet audit including the Long Audit Report
though there is no scope restriction of the statutory auditor to perform certain actions of
other auditors as part of his duty or if some findings lead him into the domain of the
auditors such as Revenue, inspector and even concurrentThe statutory auditor performs
the following functions. Verifies the classification of items of the Balance Sheet to assure
their correct placement Basel II accord, which has influenced the prudential norms, has
included the statutory auditor as an active member to assure the proper execution of the
prevailing prudential norms. The direct result of an accurate classification is the
appropriateness of income recognition and thus the effect on the profitability of the Bank
II. Concurrent Audit
In the beginning of the 1990s, the Great Banking Scam or the Harshad Mehta Scam
rocked the nation. This brought into limelight special category of audit called concurrent
audit or continuous audit. This stemmed from the need of filling in the gap between the
annual statutory audits and the intervening period between two inspections, which is a
period sufficiently large to cause damage to the Bank. Now, RBI who insisted that at least
50% of the business of the Bank should be covered under concurrent controlled the
spotlight of the concurrent audit. While some Banks covered very large branches under
the umbrella of concurrent audit. Some banks took the excurse for improvement by

including weak branches though having low volume of business. Concurrent audit in one
sentence will mean checking yesterdays transactions today. Let us see the broad areas
covered by the Concurrent Auditor.