Seminar has also restriction to explain all situations. Of Course you may be guided to some extent. But one should always appreciate the position and carry outline of Audit Program.
C A Shah D J
On Sunday, March 1, 2015 5:19 AM, "Amit Agarwal amitagarwal_cac@yahoo.com [lucknow-ca]" <lucknow-ca@yahoogroups.com> wrote:
Dear Sir,
I think there should be full day workshop/seminar on bank audit which should cover Statutory, Concurrent, revenue, stock audits of Banks. Merely blaming ourselves would not serve the purpose. We should have discussions how to change the attitude for bank audit. The fact is that we have treated the bank audits as "MISC INCOME" instead of professional income".I m seeing the level of reports. In a single day, the concurrent audit is being completed just by changing the outstandings in reports. Even, borrowers having crores of limit is not being observed by auditors. I have personally checked the accounts in STOCK Audit and they were about to come NPA but there was no reporting in concurrent audit reports. The revenue audit is conducted very casually. The revenue leakage has been detected at branch in Lacs of Rupees by subsequent auditors/internal auditors while we submit reports for less than Rs 5000/-. We have treated the Statutory Audit as our birthright. I think there should be full day seminar and the staff who is conducting the audits must be present there. Its high time to increase our efficiency otherwise bank audit would become history for us. I humbly request the managing committee of Lucknow to arrange the seminar on these lines in March 2015 itself.
With regards,
CA Amit Kumar Agrawal
Indira Nagar, Lucknow
9450096415
On Sunday, 1 March 2015 6:25 AM, "Dipakkumar Shah cadjshah@yahoo.com [lucknow-ca]" <lucknow-ca@yahoogroups.com> wrote:
Dear Shri Mukeshji,
I acknowledge your comments and endorse it fully. When you are talking about Concurrent audit I did one concurrent audit of one nationalized bank. I was attending regularly. Checking every aspect. In one company One charge was registers but it was duplicate and other charge was not removed!!!! In another Company , one director MBA from IIM Ahmedabad was handling the company and representing as director of the Company !! In fact he was not Director of company !!! He was in fact removed from the Company by Resolution and on record of R O C. !! When asked about Balance Sheet only two pages were produced byn Him. Then I asked the Bank management to take inspection of records,then found as above!!! Balance Sheet was with Bank was in just two pages which was not correct and Audit Report only one page and accounts Balance Sheet in one page!!!! I was given by IIM MBA director that they had been supplied on this >>>!!! Being a MBA from IIM Ahmedabad!!!!!!
For last 4 years no accounts were filed by Company.
All was included in the Monthly report. No implementation of recommendation by Bank , Regional manager and also head office?
One day I wrote in my monthly report that if any recommendation is not to be accepted by management, there is no purpose of Concurrent audit at all!!!
One day I wrote in my monthly report that if any recommendation is not to be accepted by management, there is no purpose of Concurrent audit at all!!!
Any body would dare to report? Any body would hit axe on his own feet???!!!!
This is the spirit required in our profession. Genuinely should be reported. Not to take any action on the matter is left to them.
All experiences are told earlier in the Groups also.
One should do the work correctly and professionally at the Best .
God bless us.
Shah D J
On Saturday, February 28, 2015 8:50 AM, "'saranfca .' saranfca@gmail.com [lucknow-ca]" <lucknow-ca@yahoogroups.com> wrote:
CA Dipak ji
I second your comment "We are responsible for not doing proper Audit of Banks." But who will tell this to ourselves.
We all aware of the modus operandi of execution of "concurrent audit" in banks. When I got concurrent audit of one commercial bank I asked the fellow members "Kaise kar rahe ho. Mahine main kitne din visit karte ho?", who are doing the concurrent audit of same bank from last year(s) "ladke kar ate hain, mahine main 5-6 din jate hain, main to kabhi-kabhi jata hoon." As I don't have any such "ladka" in my firm I refused the assignment after 3 day visit to branch for which I have not charged a single penny from the Bank with the one of the remark "Present scale of remuneration and TA/DA do not fit in our cost benefit analysis. If we try to fit ourselves in cost frame we will not do justice to the audit work and if we try to do justice to audit work (100% checking and 20 days attendance criteria) our cost will go over and above the present scale of fee and TA/DA."
Similarly, in statutory audit of banks most of the member's fix their focus on "How to increase NPA of the branch which is reported by the branch" instead of fixing their focus on "Correct classification of Advances" according to latest IRAC norms and guidelines prescribed by RBI and applicable to particular bank. They also left other areas during statutory audit which should also get equal attention of auditor, like calculation of "Interest subsidy on Crop loans", "checking of various parameters in the system" etc. I could not understand why they say "due to lack of time we could not check anything else other than Advances." This is no excuse. They should plan their audit and make the audit team accordingly so that no area will be left from checking.
Statutory Bank Audit time once again fast approaching and we should all gear up ourselves to give a qualitative audit report this time to avoid remark "We are responsible for not doing proper Audit of Banks."
with regards,
---
I believe in three "H"s of life - Humour, Hard work and Honesty
On Sat, Feb 28, 2015 at 5:50 AM, Dipakkumar Shah cadjshah@yahoo.com [lucknow-ca] <lucknow-ca@yahoogroups.com> wrote:
Good self comments. We are responsible for not doing proper Audit of Banks.Some time back I had given my own experience of End use of Fund by bank. In short let me tell you. Along with me there were more than 10 C A Firms of Ahmedabad doing same work of the Bank with different units. All other than me reported NIL qualification. Every thing fine and correct!!!!Mine was very difficult task . I reported over drawing the limit , penal interest of Rs 135000 / more than my fees paid. Some of the machinery were included in stock statement???!!!All other were there inn next year. When I inquired about my case , the officer of the Bank told me on face and bluntly that Bank do not require my services!!!!!!This is also other side. But I would say that come what may , you should do your duties diligently and fully.CAShah D JOn Wednesday, February 25, 2015 11:35 PM, "pvrg2000@gmail.com [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:
If all of us do an effective audit of banks, the banks will appoint few CA firms like LIC to do central and branch audits and done away with the headache of appointing many CAs in all over Country. It will come soon.Tell me which auditor firm had come out with serious qualification in bank and PSB audits? We are not doing the proper audit so every one is treating us like peanutsFailure of large borrowers coming out because the stress in this accounts were not looked by all audits in time and halted the quantum of failure
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Posted by: Dipakkumar Shah <cadjshah@yahoo.com>
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