Concurrent audit and other bank-related audit assignments require timely checking of transactions as they occur, rather than a single year-end review. The work focuses on adherence to the bank’s circulars, delegation of powers, KYC and AML norms, documentation of advances, and correctness of income recognition and expenditure booking at the branch or processing unit.
Support on such assignments typically covers sampling of account opening, loans sanctioned and disbursed, renewal and review of limits, locker operations, cash remittances, and charges levied. Exceptions are listed with the transaction reference, nature of deviation, and the control that should have operated. Revenue leakage items — uncollected charges, incorrect interest application, or pending documentation that blocks income booking — are separately tabulated.
Reports are prepared in the format prescribed by the bank or the appointing authority, usually on a monthly or quarterly cycle. Working papers retain the sample list, screenshots or copies of the documents examined, and correspondence on open points so that subsequent reviewers can trace each exception.
Where the firm assists management of a borrower rather than the bank, the same discipline is used to prepare the file that a concurrent or statutory bank auditor is likely to request, reducing last-minute reconstruction of papers.