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Audit - 24. page

Examination of Reconciliation

Examination of Reconciliation The auditor should examine the reconciliation of the investment balances as per the financial statements with that of the balances with the custodians (PDO or a depository […]

Inspection of Documents

Inspection of Documents The auditor should ascertain whether the investments made by the bank are within its authority. In this regard, the auditor should examine whether the legal requirements governing […]

Examination of Existence of Investments

Examination of Existence of Investments The auditor may advise the bank to list out investments held in physical form separately from those held in dematerialised form with the PDO or […]

Process Review, Walk through and Control Testing

Process Review, Walk through and Control Testing For the purpose of identifying significant processes, the auditor may identify significant accounts and processes linked to significant accounts. They may carry out […]

Substantive Audit Procedures

Substantive Audit Procedures Considering that the investments comprise a substantial portion of a bank’s balance sheet, a combination of test of operating effectiveness of controls and substantive audit procedures (including […]

Exposure Limits

Exposure Limits The RBI, vide its Master Circular dated July 1, 2015 on “Exposure Norms” provides requirements in respect of exposure limits for banks.  

Audit Approach and Procedures

Audit Approach and Procedures The auditor’s primary objective in audit of investments is to satisfy themselves as to their existence and valuation. Examination of compliance with statutory and regulatory requirements […]

Classification of Investments

Classification of Investments Banks are required to classify their entire investments portfolio (including SLR securities and non-SLR securities) into three categories: heldto-maturity, available-for-sale and held-for-trading. (i) Held-to-maturity (HTM) This category […]