Audit Programming and Procedures
In framing the audit program, an auditor needs to take into consideration their findings of the adequacy of controls within the processes as explained in this Guidance Note. Reserve Bank of India prescribes concurrent audit /internal audit for a 100% verification of treasury transactions. Hence, the selection of samples can be influenced by the nature, extent and timings of concurrent/internal audit function including the compliance mechanism of the Bank. Further, RBI requires compliance reports on derivatives separately to be prepared by the Bank as per RBI Guidelines on Derivatives vide circular no. DBOD.No.BP.BC.44/21.04.157/ 2011-12 dated November 2, 2011 which the auditor should take into consideration.
The following are illustrative audit procedures/ approach that may form part of the audit program.