The process for disbursement of loan can be summed up as the following transactions: However, the process for disbursement remains more or less the same. There are several loans and advances that a bank offers. Hence there is a great significance and need for proper documentation.

Lending function ranks higher on the risk factor as there is a possibility of the debt not being recovered. The bank accepts deposits at a certain rate and lends at a higher rate. The lending of funds is the other core function of the bank. Hence the document verification must be carried on accordingly.

The KYC norms will differ as per the status of the holder of the accounts. Test check if all the charges, prematurity penalties are correctly charged in the CBS Is the signature and photo scanned in CBS?Īre the account number, customer id and account opening date specified on the application form?Īre all the documents correctly filed and stored properly?Īre the interest rates correctly applied, verified by conducting test checks in the CBS?Ĭheck if the fixed deposits that have an OD facility have lien marked? The following steps must be adhered to ensure correctness: Sr.NoĪre all the necessary proofs collected in original and verified as per KYC and AML norms?Īre all the details inputted in the CBS correctly and is the account created?

Creation of account in Core Banking System (CBS).

Nevertheless, the process of acceptance of deposits can be summed up as follows:. The deposits are of varied nature depending on the holder and purpose of the account. Acceptance of depositsĪcceptance of deposits is a core function of banks. To conduct a concurrent audit, functions of the bank must be fragmented to transactions, and the necessary checks and balances must be assigned. Banking functions are inclusive but not limited to the following: Hence to understand how this audit needs to be conducted, an understanding of the processes of the banks is imperative. The concurrent audit covers all transactions of the bank. It gives an early warning to ensure timely detection of irregularities and lapses. Unlike most audits that are post transactional review, the concurrent audit is as and when transactions take place. As the name itself suggests, it is an audit that takes place at the moment when transactions take place, that means it is parallelly conducted.

Auditing procedures pdf