Statutory Audit of Banks | Hindi

In this video, I have discussed the basics of bank statutory audit that is done annually at the end of the financial year. I have divided the whole topic into six parts – understanding the branch, advances and NPAs, cash verification, tax-related matters, Long Form Audit Report (LFAR), and Auditor Report. Understanding the branch – Important because that is how you come to know about the services provided by the branch and plan your audit accordingly. Advances and NPA – Verification of the loans and related documents and ensuring the proper compliance with the Non-performing Asset norms is one of the most important tasks of the statutory auditors. The banks are required by law to classify their assets per the RBI guidelines. What if they do not adhere to the same? We will see the inclusion of NPAs in the balance sheet as performing or standard assets. Not fair. Cash Verification – Necessary to ensure that the branch is not inflating its cash holding. One can see the system generated cash report and count the notes to ensure that both the values are matching. Tax Matters – the branches deduct taxes such as TDS and GST. But do they pay it to the authorities? And do they also report the submission of the documents such as Form 15G/H to the authorities? LFAR – Stands for the Long Form Audit Report. It was introduced by the RBI in 1985. It is an addendum and is used as a supplement to the set of documents (including the Audit Report) to form an opinion on the financial statement of the bank. Audit Report – the final task. After you have checked and verified everything, you need to sign reports, declarations, and statements. ___________________ About Us: We are an educational platform. Our specialty lies in the areas of governance, economics, finance, ethics, and law. However, you would also find us venturing out of our defined boundary line and covering everything that matters the most, including the trending hot topics. ___________________ Support Us: If you like our content, please consider supporting us: Phonepe: +91 7903382113 ___________________ Disclaimer: We are an educational platform, and all our videos are purely for educational and research purposes. We are not a substitute for your regular schools or classes. We recommend that you attend your offline classes in addition to watching our videos. Your reliance on our content for any purpose whatsoever is solely based on your discretion. We assume no liability for the damages you or your agents suffer as a result of such reliance. Our content must not be brought into a use that is unlawful in the eyes of law. ___________________ Copyright: We respect your intellectual property rights and are committed to protecting the same. All third party contents used in our videos comply with the fair use principle. Our use of any third-party content is limited to education, research, review, criticism, parody, and pastiche, permitted under the copyright laws. Although we remain extra careful in using third-party content, we agree that we too can make mistakes. If you believe that we have used your copyrighted material in our videos and such use goes against the fair use principle, please let us know. Our email address is given in the “about” section of this channel. We assure full cooperation in protecting your rights. ©aeontalks 2021 #bankaudit #statutoryaudit #NPA