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 […]
Audit - 23. page
Investment Fluctuation Reserve (IFR), Market Risk & Investment Reserve Account (IRA)
Investment Fluctuation Reserve (IFR), Market Risk & Investment Reserve Account (IRA) The RBI’s Master Circular specifies the following guidelines with respect to IFR and IRA: Investment Fluctuation Reserve (i) Banks were […]
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 […]
Chart of basis of Marked to Market procedure based on type of investments (Unquoted)
Chart of basis of Marked to Market procedure based on type of investments (Unquoted) Type of Investment Basis of Valuation Unquoted Central Government Securities Prices / YTM rates put […]
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 […]
Classification of State Government guaranteed investments as NPI
Classification of State Government guaranteed investments as NPI With effect from the year ending March 31, 2006, investment in State Government guaranteed securities, including those in the nature of ‘deemed […]
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 […]