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Bank Audit - 2. page

Illustrative Audit Checklist for Capital Adequacy

Illustrative Audit Checklist for Capital Adequacy :   The checklist is only illustrative in nature. Members are expected to exercise their professional judgment while using the checklist depending upon facts […]

Share Issue Expenses

Share Issue Expenses : The Supreme Court in the case of Brooke Bond India Ltd. Vs. Commissioner of Income-tax, 224 ITR 798, has held that expenditure incurred on issue of […]

Depreciation

Depreciation Generally, in respect of buildings, pending registration of documents of title, a note is given mentioning this fact. The Supreme Court has held in the case of Mysore Minerals […]

Items Requiring Special Consideration

Items Requiring Special Consideration Tax Implications of Valuation of Investments The RBI has issued various circulars on valuation of investments, according to which the difference between the market value/value as […]

Reversal of Earlier Year’s Provision

Reversal of Earlier Year’s Provision It is possible that subsequent judicial pronouncements/ appellate orders may make the provisions of earlier years excessive. As per Accounting Standard (AS) 29, “Provisions, Contingent […]

Pending Proceedings

Pending Proceedings The auditor should review the appellate orders received during the year and consider the need for any additional provision/reversal.  

Method of Accounting

Method of Accounting Many banks account for commission, exchange, brokerage, interest on bills, locker rent and other fees as income upon realisation. Section 145 of the Income-tax Act, 1961 provides, […]

Tax Refunds/Demands

Tax Refunds/Demands Where an assessment order is received during the year, the auditor should examine the assessment order and if any interest is determined on the amount of refund, the […]