Annexure:

Suggested Bank Branch Audit Program / Illustrative Checklist Time &

Manpower planning:

Sr. Name of the Designation Estimated Initials of

N person & time the Person
for work

Sr. Area of Work Person Don Date

N responsible e by
o at the who
Branch for m
. that area
A General - Pre Audit Work
1 Review of Latest available
inspection reports of
Internal/Concurrent/RBI/Statutory
Auditors and
compliance thereof
2 Review of Closing Circular issued
by Head
Office
3 Study of Significant accounting
policies of the
Bank & computer system
4 Study of Business mix of the
Branch &
determination of the sample
size and percentage of
checking in each area keeping
in view the LFAR requirements
5 Compliance of
Mandatory
Accounting
Standards / Auditing
Standards and RBI circulars
6 Intimation in writing whether ,
given to the Branch
Manager regarding requirements
for audit and documents to be
kept ready for audit
 7 Get the signing partner’s Digital
Signature Certificate (DSC) ready
B Physical Verification
1 Physical verification of Cash (in
branch and in ATM), Adhesive
stamp documents and postage
and cross verification of the
same with GL
balances.
Physical verification of
2 Investments. (if lodged at
Branch)
3 Physical verification of valuable
stationery
like cheque books, Demand
Drafts, Pay - Orders etc.
C Verification of Returns and Reconciliation
1 Verification of returns submitted
to RBI / HO /
ZO ( Monthly/ Quarterly / Half
Yearly / Yearly )
2 Verification of Annual Closing
Returns
3 Verification of HO / Branches /
Other Banks Reconciliation,
Branch Adjustment Account,
Suspense account etc.
4 Verification of Statement of Fraud
5 Verification of NOSTRO
reconciliation
D Verification of Balances
1 Checking of opening balances
in GL with previous year
audited Balance
Sheet and Profit & Loss Account
2 Cross Verification of Trial Balance,
Profit & Loss Account and
Balance Sheet
figures as on 31' March with GL
figures
E Balance Sheet
1 Advances
100 % coverage of advances in
respect of which outstanding
amount is excess of 10% of
outstanding aggregate balance of
fund based and non-fund based
advances of the branch or Rs.10
crores, whichever is less
 a. Credit Appraisal
b. Sanctioning and Disbursement
c. Documentation - Pre-sanction
&
Post Sanction
d. Monitoring/ Review/
Supervision
by the Branch
1. Submission of financial
statements
2. Submission of I.T. Returns
3. Timely submission of stock
statements
4. 4.Calculation of Drawing Power
5. Inspection of Godowns
6. Operations in the account -
overdue/ sticky accounts /
diversion of funds/ cheques
duly honoured/ limit not
exceeded frequently
7. Renewal of documents due
8. Penal interest for default
9. Insurance coverage
10. Registration and Mortgage of
property
11. Verification of data in CBS
2 Analysis of entries outstanding in
suspense Account, Sundry
Debtors, Sundry Creditors
3 1. Verification of assets classified as
NPA.
2. Verification of Upgraded
Accounts earlier classified as
NPA
4 Review of suit filed accounts /
Decreed accounts & their
follow -
up
5 Checking of additions, deductions,
transfer of fixed assets with
relevant supporting
6 Verify that all balances are shown
under proper heads
7 Verify that credit balances in OD,
CC, inoperative current accounts
are not netted off with advances
and are shown
separately under demand deposits
Verify that Interest accrued but
not
 due on loans is not included in
9 Deposits
1. After the Balance Sheet date
& till the date of audit
whether there have been any
unusual large movements in
the
aggregate deposits held at the
year end
2.Verification of Staff Accounts
3.Check that guidelines issued by
RBI for
inoperative & dormant
accounts are strictly
followed
4.Verify that overdue, matured
time
deposits are shown in demand
deposits
5.Verify that interest accrued
but not due
is not included in deposits but
shown
10 Analysis of entries outstanding in
Bills Payable/ Sundry Deposits etc.
11 Obtain list of contingent
liabilities not acknowledged
as debts by the
branch. Check for correct
F Profit & Loss Account
1 Verification of provision of interest
on standard , substandard,
doubtful & loss
assets and appropriate accounting
2 Checking of proper classification of
revenue and expenditure items
3 Ratio Analysis and comparison
with
previous year figures
4 Verify whether there is any
divergent trend in major items
of income &
expenditure and analysis of
reasons
5 Test checking of interest on
deposits
and advances
6 Test checking of commission and
discount on bills etc.
7 Verification of accounts of major
8 heads of income & expenditure
Verification of provisions for
prepaid and outstanding
income & expenditure
 9 Verification of locker rent
received and due and provision
thereof
10 Verification of provision for
depreciation on fixed assets
11 Checking of prior period expenses
and income and
provisioning thereof
12 Checking of provisions for ECGC/
DICGC claims
G LFAR
1 Checking of items as per LFAR
checklist
2 Preparation of annexures to LFAR
3 Preparation of LFAR
Special emphasis on restructured
4 accounts /
NPAs
H Verification of Checklist of Jilani Committee Recommendations

I Verification of Checklist of Ghosh Committee Recommendations

J Collection of following certificates and statements from Branch

1 Physical verification of cash
2 Physical verification of
Adhesive Stamp Documents,
Postage, Security
etc.
3 Physical verification of Investments
4 Physical verification of Fixed Assets
carried out by Branch
5 NPA Statement, Profit &
Loss Account,Balance
Sheet, Trial
Balance certified by Branch Manager
6 Management Representation Letter
7 Certificate from Branch Manager
for attendance of Audit
M Finalisation
Preparation of Draft of the
1 following-
1 1. Audit Report
2. LFAR & Annexures
3. Jilani Committee
Recommendations
4. Ghosh Committee
Recommendations
5. Memorandum of Changes
2 Discussion of Draft Report with
Branch Manager
 3 Preparation of Final Report
4 Generation of UDIN
5 Submission of Final Report along
with
Copies of Signed Balance Sheet,
Profit & Loss Account and
certificates digitally or physical as
per requirements
N Review of work done by Audit Team
1 Senior
2 Junior
3 Articled Clerks
4 Employee