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Audit - 23. page

Products offered in Forex and Derivative business

Products offered in Forex and Derivative business There are various types of foreign exchange and derivative contracts offered in normal course of banking business including inter-alia Cash, Tom & Spot, Foreign […]

Income from investments

Income from investments The auditor should examine whether income from investments is properly accounted for. This aspect assumes special importance in cases where the bank has opted for receipt of […]

Special-purpose Certificates Relating to Investments

Special-purpose Certificates Relating to Investments It may be noted that pursuant to RBI’s circulars, issued from time to time, banks require their central statutory auditors to issue the following certificates […]

Non-Performing Investments (NPI)

Non-Performing Investments (NPI) In respect of securities included in any of the three categories where interest/ principal is in arrears, banks should not reckon income on the securities and should […]

Examination of classification and shifting

Examination of classification and shifting The auditor should examine whether the shifting of the investments to/from HTM category is carried out only once during a financial year and at the […]

Examination of Accounting and Valuation

Examination of Accounting and Valuation Investments in securities now-a-days constitute a substantial part of total assets of many banks. Method of valuation of investments followed by a bank may, therefore, […]

Cut-off Procedures

Cut-off Procedures In terms of testing completeness of investments balances at the reporting date, the auditor should carefully devise cut-off procedures. This should be designed after understanding the bank’s procedures […]