Statutory Audit of Banks Checklist: Comprehensive Guide

Statutory Audit of Banks Checklist: This comprehensive checklist serves as a guide for conducting the statutory audit of banks. Ensure a thorough examination of all relevant aspects by utilizing this checklist as a tool for the audit process. Download the Checklist for Bank Audits to facilitate a systematic and efficient statutory audit of banks. Explore the complete list below to access the essential “Checklist for Statutory Audit of Banks.”

Statutory Audit of Banks Checklist
Statutory Audit of Banks Checklist

Checklist for Statutory Audit of Banks

Request for the following information/records/details/evidences for the purpose of the statutory audit of the bank:

Checklist for Bank Statutory Audit:

  1. Closing circular issued to the branch/reference on their website for download.
  2. Extent, size, and specialization of the branch.
  3. Profile and performance of the branch in the past two years.
  4. Comparative analysis of interest income and expenses movement vs. advances and deposits for two years.
  5. List of top borrower accounts representing 2% of branch advances or Rs. 1 crore, whichever is lower, covering at least 60% of advances.
  6. Copies of the last three months’ Concurrent Audit Reports (if covered under Concurrent Audit).
  7. Copy of the summary sheet of the last Inspection Report.
  8. Copy of Revenue Audit Report, if any.
  9. Copy of IT Audit Report, if any.
  10. Copy of vigilance enquiry or any special investigation reports.
  11. Details of fresh advances made during the year.
  12. Details of major weaknesses, if any, persisting in the branch.
  13. List of Potential NPA Accounts – For quarter ending December.
  14. Details of loan accounts restructured during the year.
  15. Details of advances pending renewal for more than 3 months.
  16. Details of advance accounts where stock statements are not received for 3 months.
  17. List of NPA accounts where valuation reports are older than 3 years.
  18. List of non-corporate entities with working capital limits exceeding Rs. 10 lakhs.
  19. List of borrowers’ accounts undergoing CDR during the year.
  20. List of accounts with recoveries made and DICGC/ECGC claims received.
  21. Details of expired Letters of Credit/Guarantees.
  22. Details of Invoked Guarantees/Letters of Credit and their treatment.
  23. List of off-balance sheet items and contingent liabilities, if any.
  24. Details of suspense and sundry entries beyond 1 year.
  25. Details of fraud by employees or outsiders against the bank during the year.
  26. List of recoveries in NPA accounts and appropriation.
  27. Details of legal expenses incurred and accounting in the books.
  28. Details for Long Form Audit Report, including Annexures for advances above Rs. 2 crore.
  29. Details for Tax Audit under section 44AB of Income Tax Act, with specific reference to additions to fixed assets.
  30. Details of section-wise tax deducted and remitted, including date of deduction, date of remittance, and any delays. TDS mapping for deduction and remittance.
  31. Certificate from branch management confirming TDS deduction and remittance compliance with the Income Tax Act, 1961.
  32. Details for furnishing various certificates.
  33. Date when the audit could commence.
  34. Proforma Management Representation Letter to obtain the management’s assurance that financial statements and other information are truly and correctly prepared and presented by the branch management to the branch Statutory auditors.

Statutory Audit of Banks Checklist FAQ

What is the purpose of the Closing Circular?

The closing circular is issued to the branch, and its reference is available on the bank’s website for download.

How are the top borrower accounts determined?

Top borrower accounts are those accounting for 2% of the advances of the branch or Rs. 1 crore, whichever is lower, covering at least 60% of advances.

What reports should be provided if covered under Concurrent Audit?

Copies of the last three months’ Concurrent Audit Reports should be provided.

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