Audit - 27. page

Bills for Collection The auditor should examine whether the bills drawn on other branches of the bank are not included in bills for collection. Inward bills are generally available with […]

Contingent Liabilities In respect of contingent liabilities, the auditor is primarily concerned with seeking reasonable assurance that all contingent liabilities are identified and properly valued. To this end, the auditor […]

Claims Against the Bank Not Acknowledged as Debts The auditor should examine the relevant evidence, e.g., correspondence with lawyers/others, claimants, workers/officers, and workmen’s/officers’ unions. The auditor should also review the […]

Liability on Account of Outstanding Forward Exchange Contracts The auditor may verify the outstanding forward exchange contracts with the register maintained by the branch and with the broker’s advice notes. […]

Co-acceptance of Bills In its Master Circular No. RBI/2015-16/76 DBR. No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015 on ”Guarantees and Coacceptances”, the RBI had reiterated the need for the banks […]

Bills for Collection Bills held by a bank for collection on behalf of its customers are to be shown as a footnote to the balance sheet. These bills are generally […]

Other Items for Which the Bank is Contingently Liable Under this head are to be included such items as arrears of cumulative dividends, bills re-discounted, commitments under underwriting contracts, estimated […]

Acceptances, Endorsements and Other Obligations This item includes the following balances: (a) letters of credit opened by the bank on behalf of its customers; and (b) Bills drawn by the […]

Other Acceptances and Endorsements Sometimes, a customer of the bank may issue a usance bill payable to his creditor and drawn on the bank. The bank, on accepting such a […]

Guarantees Given on Behalf of Constituents The amount of all guarantees outstanding on the balance sheet is to be shown under the above head after deducting therefrom any cash margin.