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Auditing has become such a ubiquitous phenomenon in the corporate and the public
sector that academics started identifying an "Audit Society" The auditor perceives and
recognises the propositions before him/her for examination, obtains evidence, evaluates the
same and formulates an opinion on the basis of his judgement which is communicated
through his audit report Any subject matter may be audited.
Audits provide third party assurance to various stakeholders that the subject matter is
free from material misstatement. The term is most frequently applied to audits of the financial
information relating to a legal person.
Other areas which are commonly audited include: secretarial & compliance audit,
internal controls, quality management, project management, water management, and energy
conservation.
The word audit is derived from a Latin word "audire" which means "to hear" During
the medieval times when manual book-keeping was prevalent, auditors in Britain used to hear
the accounts read out for them and checked that the organisation's personnel were not
negligent or fraudulent.
1
DEFINITION OF AUDIT
Common trait of the different types of auditing is the purpose of check and review in
order to improve The results include a summary of the objectives, reason for conducting
review, individuals involved (including external advice), list of recommendations, list of
areas and proposals for improvement (with priorities where possible)
2
1.2: ORIGIN AND EVOLUTION
The term audit is derived from the Latin term audire, which means to hear. In early
days an auditor used to listen to the accounts read over by an accountant in order to check
them Auditing is as old as accounting. It was in use in all ancient countries such as
Mesopotamia, Greece, Egypt. Rome, U.K. and India. The Vedas contain reference to accounts
and auditing. Arthasashthra by Kautilya detailed rules for accounting and auditing of public
finances.
The original objective of auditing was to detect and prevent errors and frauds
Auditing evolved and grew rapidly after the industrial revolution in the 18th century With the
growth of the joint stock companies the ownership and management became separate. The
shareholders who were the owners needed a report from an independent expert on the
accounts of the company managed by the board of directors who were the employees.
The objective of audit shifted and audit was expected to ascertain whether the accounts were
true and fair rather than detection of errors and frauds.
In India the companies Act 1913 made audit of company accounts compulsory
With the increase in the size of the companies and the volume of transactions the main
objective of audit shifted to ascertaining whether the accounts were true and fair rather than
true and correct. Hence the emphasis was not on arithmetical accuracy but on a fair
representation of the financial efforts
The companies Act.1913 also prescribed for the first time the qualification of auditors .
The International Accounting Standards Committee and the Accounting Standard board of the
Institute of Chartered Accountants of India have developed standard accounting and auditing
practices to guide the. accountants and auditors in the day to day work The later
developments in auditing pertain to the use of computers in accounting and auditing.
3
1.3: FEATURES OF AUDITING
a. Audit is a systematic and scientific examination of the books of accounts of a
business;
c. Audit is a verification of the results shown by the profit and loss account and the state
of affairs as shown by the balance sheet.
d. Audit is a critical review of the system of accounting and internal control. Audit is
done with the help of vouchers, documents, information and explanations received
from the authorities.
e. The auditor has to satisfy himself with the authenticity of the financial statements and
report that they exhibit a true and fair view of the state of affairs of the concern.
f. The auditor has to inspect, compare, check, review, scrutinize the vouchers
supporting the transactions and examine correspondence, minute books of share
holders, directors, Memorandum of Association and Articles of association etc., in
order to establish correctness of the books of accounts.
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1.4: BASIC PRINCIPLES OF AUDIT
AAS-1 describes the basic principles, which govern the auditor's professional responsibilities
and which should be complied with whenever an audit is carried out. These are:-
1. Integrity, objectivity and independence:
The auditor should be straightforward, honest and sincere in his approach to his
professional work. He must be fair and must not allow prejudice or bias to override
his objectivity. He should maintain an impartial attitude and appear to be free of any
interest which might be regarded. Whatever it's actual effect, as being incompatible
with integrity and objectivity.
2. Confidentiality:
The auditor should respect the confidentiality of information acquired in the course of
his work and should not disclose any such information to a third party without
specific authority or unless there is legal or professional duty to disclose. It is
remarked that an auditor should keep his ears and eyes open but his mouth shut.
3. Skill and competence:
The audit should be performed and the report prepared with due professional care by
persons who have adequate training, experience and competence. This can be
acquired through a combination of general education, technical knowledge obtained
through study and formal courses concluded by a qualifying examination recognized
for this purpose and practical experience under proper supervision.
4. Work performed by others:
When the auditor delegates work to assistant* or uses work performed by other
auditors or experts, he will continue to be responsible for forming and expressing his
opinion on the financial information. At the same time he is entitled to rely on work
performed by others provided he exercises adequate skills and care and is not aware
of any reason to believe that he should not have relied. The auditor should carefully
direct, supervise & review work delegated by assistants.
5. Documentation:
The auditor should document matters, which are important in providing evidence that
the audit was carried out in accordance with the basic principles.
6. Planning:
The auditor should plan his work to enable him to conduct an effective audit in an
efficient and timely manner. Plans should be based on knowledge of client's business.
They should be further developed and revised, if required, during the course of audit.
7. Audit evidence: The auditor
5 should obtain sufficient appropriate audit evidence
through the performance of compliance and substantive test procedure. It will enable
him to draw reasonable conclusions there from on which he has to base his opinion on
the financial information.
8. Accounting system & internal control:
The auditor should gain an understanding of the accounting system and related
internal controls. He should study and evaluate the operation of those internal controls
upon which he wishes to rely in determining the nature, timing and extent of other
audit procedures.
9. Audit conclusions and reporting:
The auditor should review and assess the conclusions drawn from the audit evidence
obtained and from his knowledge of business of the entity as the basis for the
expression of his opinion on the financial information.
The audit report should contain a written expression of opinion of the financial information.
It should comply with the legal requirements. In case of a qualified opinion, adverse opinion
or disclaimer of opinion is given or reservation on any matter is to be made reasons thereof.
CHAPTER NO:-2
2.1: AUDIT TYPES
MEANING: 6
Audit is not legally obligatory for all types of business organizations or institutions. On this
basis audits may be of two broad categories i.e., audit required under law and voluntary
audits.
(i) Audit required under law :
The organizations which require audit under law are the following: companies governed by
the Companies Act, 1956;
a. banking companies governed by the Banking Regulation Act, 1949;
b. electricity supply companies governed by the Electricity supply Act, 1948;
c. co-operative societies registered under the co-operative Societies Act, 1912;
d. public and charitable trusts registered under various Religious and Endowment Acts;
e. corporations set up under an Act of parliament or State Legislature such as the Life
Insurance Corporation of India.
f. Specified entities under various sections of the Income-tax Act, 1961.
(ii) In the voluntary category are the audits of the accounts of proprietary entities,
partnership firms, Hindu undivided families, etc. in respect of such accounts, there is no basic
legal requirement of audit. Many of such enterprises as a matter of internal rules require
audit. Some may be required to get their accounts audited on the directives of Government
for various purpose like sanction of grants, loans, etc. But the important motive for getting
accounts audited lies in the advantages that follow from an independent professional audit.
This is perhaps the reason why large numbers of proprietary and partnership business get
their accounts audited.
Government companies have some special feature which will be seen later.
INTERIM AUDIT:
An audit that is taken up between two annual audits is called an Interim Audit. A specific
date, as per the clients requirement is taken into account, e.g. 30th September, 31st
December, etc. a trial balance is drawn and verified with a view to prepare financial
statement. Financial statement are prepared and authenticated for the interim audit period.
Assets and liabilities are verified for interim balance sheet purposes. Independence is
considered less independent than
7 the statutory Auditor; generally an employee of the
enterprise will be the internal auditor. In the interim audit no format is prescribed. It depends
on the nature of work, coverage and audit observations.
CONTINUOUS AUDIT:
A continuous audit is one in which the auditors staff is engaged continuously in checking the
accounts of the client, during the whole year round or when for the purpose, the staff attends
at quite frequent intervals say weekly basis during the financial period. A continuous audit is
preferred for the following reasons: i. It makes it possible for the management to exercise a
stricter control over the accounts in as much as one is able to check sooner the causes of any
errors of frauds uncovered by such an audit. ii. The frequent attendance by the staff deters
persons so inclined, from committing a fraud. iii. The accounting staff of the client is
motivated to keep the books of account up-to-day.
1.Statutory audit:
The statutory audit, which is compulsory as per the law. The statutory audit of banks includes
examination and inspection of internal audit, concurrent audit, etc. The statutory audit of
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banks is like a post mortem activity. The suggestions of the statutory auditors can assist the
bank management in improving the effectiveness of internal audit/concurrent audit/inspection
functions, etc. In this way statutory plays a very important role in regulating the banking
companies.
2.Internal audit:
Banks generally have a well-organized system of internal audit. There internal auditors pay
frequent visit to the branches. They are an important link in internal control of the bank. The
systems of internal audit in different banks also have a system of regular inspection of
branches and head office. A separate department within the banks by firms of chartered
accountants carries out the internal audit and inspection function.
3.Concurrent audit:
Concurrent audit is the system which introduced by the RBI with the view that interval
between the occurrence of transaction and its over view kept to the minimum extent and
examination of transactions by the auditors take place as soon as the transaction take place. It
has perceived the effective means of control. The main view of concurrent auditors is to see
that the transactions are properly recorded, documented and vouched.
4.System audit:
In todays technological advancements, banking companies are using a well-organized
computer system to perform their transactions. So, it is very necessary to conduct system
audit in order to evaluate the computer system for effectiveness.
System audit is the audit of such computer environment/system and comprises the following
internal controls over EDP activities and with application controls specific control procedures
over accounting applications/assuring that all transaction are recorded and authorized and
completely, accurately, timely processed manner which in turn are verified by computer.
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5.Revenue audit:
Revenue audit refers to the audit of revenues/ incomes. In revenue audit of banking
companies, auditors go through the various sources of revenues from which bank earn
income. In revenue audit of banks, the auditor inspects that all the records are showing true
and fair picture of revenues or not.
A banking company is required to maintain the books of accounts in accordance with sec.209
of the companies act. There are, however, certain imperatives in banking business they are
the requirements to maintain accurate and always up to date account. Banks, therefore, device
their accounting system to suit these requirements. The main characteristics of a banks
system of book keeping are as follows:
A. The vouchers entered into different personal ledgers each day are summarized on summery
sheet; the totals of each are posted to the control accounts in the general ledger.
D. Expecting for cash transactions, always two vouchers are prepared for each transaction, one
for debit and the other for credit. This system ensures double entry at the basic level and
obviates the possibility of errors in posting
The capital owned by central government as on the date of balance sheet including
contribution from government,13if any, for participation in world bank project should be
shown.
The auditor should verify the opening balance of capital with reference to the audited balance
sheet of the previous year. In case there has been increase in capital during the year, the
auditor should examine the relevant documents supporting the increase. For example, in case
of an increase an authorized capital of a banking company, the auditor should examine the
special resolution of shareholders and the memorandum of association. An increase in
subscribed and paid-up capital of a banking company, on the other hand, should be verified
with reference to prospectus/ other offer document, reports received from registers to the
issue, bank statement, etc.
a) Statutory reserves.
b) Capital reserves.
c) Share premium.
3) Deposits:
Deposits are required to be classified in the balance sheet under the following heads.
A I. Demand Deposits
i from banks
ii from others
I Current account:
The auditor should verify the balances in individual accounts on a sampling basis. He should
also examine whether the balances as per subsidiary ledgers tally with the related control
accounts in the general ledger.
The auditor should consider the debit balances in current account are not netted out on the
liabilities side but appropriately included under the advances.
Inoperative accounts are a common area of frauds in banks. While examining current
account, the auditor should specifically cover in his sample some of the inoperative account
revived during the year. The auditor should ascertain whether inoperative are revived only
with proper authority. For this purpose, the auditor should identify cases where there has been
a significant reduction in balances compared to the previous year and examine the
authorization for withdrawals.
The auditor should also check the calculations of interest on a sampling basis. It is not usual
for branches to interest saving bank up to a date close to the end of the accounting
period for e.g.25th March based on the actual balances with interest of the
remaining period on an estimated basis at the head office level.
III. Term deposits:
Term deposits are deposits repayable after a specified period. They are considered time
liabilities of the bank.
The auditor should verify the deposits with reference to the relevant registers. The auditor
should also examine, on a sampling basis, the registers with the counter-foils of the receipts
issued and with the discharged receipts returned to the bank.
16
2. Borrowing:
II Borrowing from RBI, other banks/financial institution etc. should be verified by the
auditors with reference to confirmation certificated and other supporting document
such as agreements, correspondence etc.
The auditor should also examine whether a clear distinction has been made between
rediscount and refinance for disclosure of the amount under the above head since
rediscount does not figure under this head.
The auditor may verify the various items under the head other liabilities and provision in the
following manner.
Bills payable
Bills payable represent instrument issued by the ranch against money received from
customers, which are to be paid to the customers or as per his order. These include Demand
Draft, Telegraphic Transfer, and Mail transfer and Mail Transfer, Traveller cheques, Pay
order, Banker cheques, and similar instrument issued by the bank but not presented for
payment until the balance sheet date.
Interest accrued:
Interest accrued but not due on deposit is to be shown and borrowing is to shown under this
head. The auditor should examine this with reference to terms of various type of deposits and
borrowings. It should be specially examined that such interest has not been clubbed with the
deposits and borrowing shown under the deposits and borrowing.
Other
According to the notes and instructions for compilation of balance sheet and profit and loss
account, issued by the Reserve Bank of India, the following items are to be included under
this head.
Net provision for income tax and other taxes like interest tax, less advances payment
and tax deducted at source.
Surplus in aggregate in provision for bad and doubtful debts provision account.
Contingency funds, which are actually in the nature of reserved but are not disclosed
as such.
Provision towards standard assets. These are to shown separately as contingent
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standard assets.
Proposed dividend/transfer to government.
ASSETS:
A Balanced with banks
1 In current account
2 In other deposits account.
B Money at call and short notice
1 With banks
2 With other institutions
1.Cash Reserved:
One of the determinants of cash balance to be maintained by banking companies and other
schedule is the requirement for maintenance of certain minimum cash reserve. While the
requirement for maintenance of cash reserve by banking companies is contained in the
banking regulation act,1949 corresponding requirements for schedule bank is contain in the
Reserve Bank of India.
2) Investment:
The auditor should verify the investment scripts physically at the close of business on the
date of balance sheet. In exceptional cases where physical verification of investment scripts
on the balance sheet date is not possible the auditor should carry out the physical verification
on a should take in to consideration any adjustment for subsequent transaction of purchase,
sale etc. he should take particular care to see that only genuine investment are produced
before him.
3.Advances:
In carrying out of audit of advances, the auditor of advances, the auditor is primarily
balance sheet.
c The stated basis of valuation of advances is appropriate and properly applied, and that the
4) Fixed assets:
In carrying out an audit of fixed assets, the auditor is concerned primarily with obtaining
evidence about their existence and valuation.
The branch auditor should ascertain whether the accounts in respect of premises and/or other
fixed assets are maintained at the branch or centrally. Similarly, he should ascertain the
location of documents of title or other documents evidencing ownership of various items of
fixed assets. The auditor should verify the opening balance of premises with reference to
schedule of fixed assets, ledger or fixed asset register.
In respect of fixed assets sold during the year, a copy of the sale deed and receipt of the salve
value should examined by the auditor.
5) Other assets:
The auditor should see that whether there are any reversals entries indicating the possibility
of irregular payments or frauds in case of inter- office adjustments. The auditor should also
pay attention towards interest-accrued part from the banks point of view. The auditor should
see that internal control over stationery items. The auditor should verify the stationery and
stamp
CHAPTER NO:-3
1. To critically evaluate the audit of bank and their compliance with critical elements
of external audit operations.
4. To stimulate further research into other areas of bank to improve their strength.
Overview
In any current business organization, progress that the company is making is recorded as
basis for, among a host of other essential things, decision-making and as a benchmark for
21
measuring the firms performance for the period under scrutiny. A financial situation analysis
or evaluation is one such yardstick that documents current and future financial situation in an
attempt to determine a financial strategy to help achieve organisational goals. With regards to
this, this paper will review some issues related to auditing as guidance of determining the
financial situation of a business. Actually, auditing in any businesses is the inspection and
verification of the accuracy of financial records and statements. Private businesses and all
levels of government conduct internal audits of accounting records and procedures. Internal
audits are conducted by a companys own personnel to uncover bookkeeping errors and also
to check the honesty of employees.
In large companies, internal auditing is an ongoing procedure. A company that trades stock on
a registered stock exchange or is preparing to issue new shares of stock must submit to an
external audit. These companies are known as publicly traded companies. Moreover, an
external audit is used to give the public a true statement of a companys financial position. It
is made at least once a year by public accountants who are not regular employees of the
company.
The auditors make sure that the company has followed proper accounting procedures in its
financial records and statements. They compare the current financial statements with those of
the previous year to determine whether the statements are calculated consistently. If they are
not, they present a distorted picture of the companys financial position. The auditors also
inspect real estate, buildings, and other assets to see if their value is overstated. Debts and
other liabilities are checked to see if they have been understated.
Auditing
Auditing practice has a much longer history than many of the other developments that
can be considered and the large firms of accountants, in which many financial auditors work
have become influential advisory institutions throughout the world. Thus, auditing has
provided the model which has influenced the design of auditing practice in many other fields.
Although environmental, medical, or value for money audits are conceived as distinct from
financial auditing, the latter continues to exert its normative influence as a centre of gravity
for debate and discussion. And it is in the context of auditing that the dependency of acts of
verification on judgment and negotiation is most apparent. With this consideration, the paper
of Ball & Shivakumar (2008) reviewed and estimated the importance of profits in providing
new information to the stock market. And through auditing procedure, they found out that
their subject company have contributed
22 more to return volatility in recent years may show
that earnings has increased importance as a source of new information. Advanced methods
have little impact on audit fees, but in some cases increase of quality not necessarily related
with higher audit fees. It is not apparent that not focusing on fees conducts to great increase
in audit quality. Auditing methods is a tool that control audit quality in response to agency
costs.
The auditor play significant role in the development of a certain business. Actually,
auditors are responsible in the analysis of the financial standing of a certain business
(Craswell, Francis & Taylor 1995). Here are some of the factors that influencing auditors
responsibility.
This chapter discussed how data was gathered, analysed, and interpreted to explain the
relationships between the various variables in relation to the objectives of the research paper.
The researcher used a case study to explain the relationship between the variables: the case of
the bank audit. The researcher employed both primary and secondary data, qualitative and
quantitative research methods were also used to examine the bank audit. A number of data
collection methods were combined
23 to verify the reliability and accuracy of the data as study
The sources of data for the study were mainly primary and secondary. The
primary sources employed questionnaire, and observation to record data. The
Secondary sources include, company archives, auditing reports, bank website
and bank auditing framework or regulation of bank.
CHAPTER NO:-4
4.1: COMPANY PROFILE
INTRODUCTION OF STATE BANK OF INDIA
The evolution of State Bank of India can be traced back to the first decade of the 19th
century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806.
The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was
the first ever joint-stock bank of the British India, established under the sponsorship of the
Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840)
and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These
three banks dominated the modern banking scenario in India, until when they were
amalgamated to form the Imperial Bank of India, on 27 January1921.
24
An important turning point in the history of State Bank of India is the launch of the first Five
Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in
general and the rural sector of the country, in particular. Until the Plan, the commercial banks
of the country, including the Imperial Bank of India, confined their services to the urban
sector. Moreover, they were not equipped to respond to the growing needs of the economic
revival taking shape in the rural areas of the country.
Therefore, in order to serve the economy as a whole and rural sector in particular, the All
India Rural Credit Survey Committee recommended the formation of a state-partnered and
state-sponsored bank.
The Bank also facilitates the free transaction of money at the ATMs of State
Bank Group, which includes the ATMs of State Bank of India as well as the
Associate Banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Indore, etc. You may also transact money through SBI Commercial and
International Bank Ltd 25
by using the State Bank ATM-cum-Debit (Cash Plus) card.
1. We have audited the accompanying financial statements of State Bank of India (the
Bank) as at March 31, 2016, which comprises the Balance Sheet as at March 31, 2016, the
Profit and Loss Account and the Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory information. Incorporated
in these financial statements are the returns of
i) The Central Offices, 14 Local Head Offices, Global Market Group, International Business
Group, Corporate Accounts Group (Central), MidCorporate Group (Central), Stressed
Assets Management Group (Central) and 42 branches audited by us;
The branches audited by us and those audited by other auditors have been selected by the
Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India.
26
Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns from
8,714 Indian Branches (including other accounting units) which have not been subjected to
audit. These unaudited branches account for 4.03% of advances, 17.81% of deposits, and
4.99% of interest income and 16.08% of interest expenses.
2. The Banks management is responsible for the preparation of these financial statements
that give a true and fair view of the financial position, financial performance and cash flows
of the Bank in accordance with the requirements of the Reserve Bank of India, the provisions
of the Banking Regulation Act, 1949, the State Bank of India Act, 1955 and recognised
accounting policies and practices, including the Accounting Standards issued by the Institute
of Chartered Accountants of India (ICAI). This responsibility of the management includes the
design, implementation and maintenance of internal controls and risk management systems
relevant to the preparation of the financial statements that are free from material
misstatement, whether due to fraud or error. In making those risk assessments, the
management has implemented such internal controls that are relevant to the preparation of the
financial statements and designed procedures that are appropriate in the circumstances so that
the internal control with regard to all the activities of the Bank is effective.
Auditors Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Standards on Auditing issued by the Institute
of Chartered Accountants of India. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free 27
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on
the auditors judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Banks preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entitys internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
6. In our opinion, as shown by books of the Bank, and to the best of our information and
according to the explanations given to us:
(i) the Balance Sheet, read with the significant accounting policies and the notes thereon is a
full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as
to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2016 in
conformity with accounting principles generally accepted in India;
(ii) the Profit and Loss Account, read with the significant accounting policies and the notes
thereon shows a true balance of profit, in conformity with accounting principles generally
accepted in India, for the year covered by the account; and
(iii) the Cash Flow Statement gives a true and fair view of the cash flows for the year ended
on that date.
Emphasis of Matter
a) Note No. 18.8 para 20: nonamortization of `1,131.01 crore on account of loss on sale of
assets to Reconstruction Companies.
8. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms A and
B respectively of the Third Schedule to the Banking Regulation Act 1949 and these give
information as required to be given by virtue of the provisions of the State Bank of India Act,
1955 and regulations there under.
9. Subject to the limitations of the audit indicated in paragraphs 1 to 5 above and as required
by the State Bank of India Act, 1955, and subject also to the limitations of disclosure required
there in, we report that:
a) We have obtained all the information and explanations which to the best of our knowledge
and belief, were necessary for the purposes of our audit and have found them to be
satisfactory.
b) The transactions of the Bank, which have come to our notice, have been within the powers
of the Bank.
c) The returns received from the offices and branches of the Bank have been found adequate
for the purposes of our audit.
10. In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement comply with the applicable accounting standards.
Chartered Accountants
Cherian K Baby
Partner, M.No.016043
Firm Regn.No.004532 S
Chartered Accountants
R K Mehra
Partner, M.No.006102
29
Firm Regn.No.000517 N
CHAPTER NO:-5
5.1: CONCLUSION
The project the position of Indian banking system as well as the principal laid down by
the Basel Committee on banking supervision.
This assessment was done in seven major areas, which are core principals, concurrent
audit, internal audit, deposit, loan accounting and transparency and foreign exchange
transaction. The project concluded that, given the complexity and development of Indian
banking sector, the overall level of compliances with the standards and codes is of high order.
This project gives the correct ideas about how the major areas can be found by way of
effective auditing system i.e. errors, frauds, manipulations etc. form this auditor get the clear
ideas how to recommend on the banks position. Project also contain that how to conduct of
audit of the banks, what are the various procedure through which audit of banks should be
done.
Form auditing point of view, there is proper follow up of work done in every organization
whether it is banking company or any other company or any other company there no
misconduct of transactions is taken places for that purpose the auditing is very important
aspect in todays scenario form company and point of view.
30
5.2: BIBLIOGRAPHY
Websites
www.moneycontrol.com
www.icai.org
31