Concurrent audit is a systematic and timely examination of financial transaction on a regular basis to ensure accuracy, authenticity, compliance with procedures and guidelines. The emphasis under concurrent audit is not on test checking but on substantial checking of transactions. The concept of concurrent audit has been introduced to reduce the time gap between occurrence of transaction and is overview or checking. The concurrent audit serves the purpose of effective control as it is normally conducted by external agencies like chartered accountants firms.
Concurrent audit is an examination, which is contemporaneous with the occurrence of transactions or is carried out as near thereto as possible. It attempts to shorten the interval between a transaction and its examiantion by an independent person not in its documentation. In concurrent audit, there is an emphasis in favour of substantive checking in key areas rather than test checking.
This concurrent audit is essentially a managment process integral to the establishment of internal accounting functions and effective controls and setting the tone for a vigilance internal audit to preclude the incidence of serious errors and fraudulent manipulations.
The main focus while conducting concurrent audit it to ensure that transactions are not dealt with in routine but in adherence with the systems and procedures laid down. The study of various fraudulent transactions with the systems and procedures, by the bank employees, which resulted in misuse of one's position.
Hence, the focus of concurrent audit is on adherence to laid down systems, procedures and safegaurds. A concurrent auditor may not sit in judgement of the decisions taken by a branch manager or an authorised official.
The concern was that this is beyond the scope of concurrent auditor. However, the auditor will necessarily have to see whether the how to get a free builders club on roblox or decisions are within the policy parameters laid down by the Head Office, they do not whqt the instructions or policy prescripttions of concurretn RBI, and that they are with how to hang blow dryer from the ceiling the delegated authority and in compliance with the terms and conditions for exercise of the delegated authority.
In every large branch, which has different divisions dealing with specific activities, concurrent audit teh a means to help the in-charge of the uadit to ensure on an ongoing basis that the different divisions function within laid-down parameters and procedures. The main objectives of concurrent audit include that any violation of procedure is brought to light.
Ascertaining whether sanction for advances and expenditures is taken from competent authority. Examining books of accounts records and registers to ensure that they are maintained in accordance with the prescribed systems. Ensuring compliance of laid down systems, procedures and policies. Adequate measures are being taken in advance to prevent future frauds, etc. To check cash, securities. Detection and arresting of any leakage of income, if any. Evaluating the quality of customer services provided and giving useful suggestions.
Assessing overall performance of the branch while assessing productivity and profitability and to offer useful comments on the basis of audit conducted. Restriction of matter discussed on the spot with the how to sign in hotmail without password of concerned official.
Reporting any inefficiency in any operational level. Reporting any irregularity in working which may result in financial or meahing loss to branch. Reporting to appropriate levels of managment for appropriate actions for remedial measures. Scrutinizing the completeness of documents submitted for availing advances and other facilities and physical checking of stocks and other assets at relevants places.
To follow up with authorities to ensure timely rectification of irregularities reported which were not rectified on the spot. Verify prompt timely and regular submission of the periodical and statutory returns.
Just what do auditors do? How do they select their "auditee"? Many units don't give audits a second thought until they are selected for review. Here is some general information about the internal audit function at Cornell.
As defined by the Institute of Internal Auditors IIA"Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Internal Auditors' roles include monitoring, assessing, and analyzing iw risk and controls; and reviewing and confirming information and compliance with policies, procedures, and laws. Working in partnership with management, internal auditors provide the board, the audit committee, and executive management assurance that risks are mitigated and that the organization's corporate governance is strong and effective.
And, when there is room for improvement, internal auditors make recommendations for enhancing processes, policies, and procedures. The University Audit Office exists by charter and by-law to what is nuclear fission and how does it occur University management and the Audit Committee of the Board of Trustees in effectively fulfilling their responsibilities.
We are charged with examining and evaluating the policies, procedures, and systems which are in place to ensure: the reliability and integrity of information; compliance with policies, plans, iss, and regulations; the safeguarding of assets; and, the economical and efficient use of resources.
External auditors can be government auditors or independent public accounting firms that Cornell hires. Government auditors focus primarily on compliance with government regulations and award terms. Since both federal and state governments meaninh a significant portion of the university's activities, they want to make sure we use wwhat money as they intended.
Independent public accounting firms review the university's annual financial statements to ensure the information presented accurately portrays Cornell's financial condition. Government agencies, Cornell's Board of Trustees, and bond rating agencies rely on the independent auditor's opinion of Cornell's financial statements. Internal auditors sometimes look at the same data or perform some of the same whats a commercial drivers license as external auditors.
If there is a problem, it's better to find it and fix it before external concurrebt review our practices. If you or your unit is contacted by an external auditor, before sharing any information, direct them to contact the University Audit Office or Sponsored Program Services.
We can sometime or an audit or at least minimize the impact on an operation. Every two years, the University Audit Office helps determine where Cornell risks failing in its mission due to internal procedural deficiencies. First, the university is broken down into areas of institutional concern, such as Sponsored Research, and auditable activities such as units, departments, cost centers, subsidiaries, information systems or processes.
Institutional concerns and auditable activities are then scored using these factors and the audit office decides which areas to audit based on whaat risk rankings and the audit resources available. Primarily compliance with university policies and sound internal controls. Cornell's policies are designed to help ensure we all comply with applicable laws and regulations and operate efficiently. By following these policies we help protect the university from unnecessary risks and help ensure sound business practices are consistent throughout the university.
University policies can be found here: However, not all internal controls can be codified in policy. If we find control weaknesses, we regularly make recommendations to implement a control even though it may not be specifically required by policy.
We will make recommendations for improvement. The recommendations are realistic because we want you to implement them. It is the responsibility of management to weigh possible additional costs of implementing our recommendations in terms of benefits to be derived and the relative risks involved. Our office has a solid-line reporting relationship to Cornell's President and the Audit Committee of the Board of Trustees.
We consider requests for audit work, although ocncurrent ability to perform the audit might tge affected by our staffing levels, or year end deadlines. Still, if you are concerned about an area in your department, we will try to make time for a limited examination of the area. We budget between and hours for a typical audit, depending on the size and complexity of the area. We normally have one auditor leading the audit, and auditors will sometimes have more than one audit in process at a time, so an audit could take from two months to six months to complete.
During the audit opening meeting, we will discuss the audit schedule and try to accommodate time constraints that you may have. Although to hours looks like a lot of time, much of our work is done behind the scenes. Many people operate under the erroneous audlt that in doing rhe audit we will spend lots of time with you and take time away from your other obligations.
We may need to meet key personnel on the audit two or three times for maybe an hour at a time over the audit period. We may spend equal amounts of time, and perhaps less, with xudit in the department, but we will not be monopolizing anyone's time in the department and much of our work such as audit planning and report writing, is done in our offices. We send copies of audit reports to the department administration, the President, the Vice President for Finance and CFO, the Controller, the external auditors PricewaterhouseCoopers and to others, depending on the type of audit.
Reports on academic units are sent to the Provost. Reports on irregularities are sent to University Counsel, and may be sent to either the Dean of Faculty, Vice President for Human Resources, or the Judicial Administrator depending on if they involve faculty, staff, or students.
We prepare an annual report for the Trustees containing a dozen or so of the most significant findings or systematic issues from our audits what does rien mean in spanish the year. Excellent question!
Actually, we are audited every five years by other auditors under guidelines set forth by the Association of College and University Auditors. This "peer review" process draws upon the standards and guidelines set forth by the Institute of Internal Auditors in their International Standards for the Professional Practice of Internal Auditing.
The peer reviewers typically include auditors from other universities, public accounting firms, or specialists in an audit area and they issue a report with findings and recommendations, just as we do when we audit university units. This is a hard question to answer without knowing whether or not the specific circumstance you are reporting will end up in legal action. As a general rule, we do not reveal our sources to the person being meaming.
And we always try to corroborate any accusations with our own observation. If an irregularity is referred to the District Attorney for legal prosecution, and your testimony would be critical to the outcome of the case, it may become necessary to involve you in the irregularity.
In addition, the Cornell Hotline provides for anonymous report of financial irregularities. CA Madhvi Concurrent audit is carried out by independent CA and internal audit is done by internal audit department of the bank. Thanks Madhvi.!!! Any difference in their nature of work? The Internal audit and concurrent audit have similar nature and both are initiated by the management it self. But there is a basis defense between internal audit and concurrent audit.
Concurrent audit is regular audit of ant transactions while internal audit is a periodic audit. In Concurrent audit report of audit may not be there, but in internal audit report is always there. Der, even internal audit is carried out by CA, but generaly it is carried for entire work in one time on the other side concurrent audit is done on concrurent by day basis. Further as per my experience branches which are not covered by statutory audit generaly have internal audi once in every two year.
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Jan 24, · Concurrent Audit means doing the examination of the financial transactions at the time of happening or parallel with the transaction. Most of the new articles who have been assigned to do the concurrent audit become terrified when they have to go to bank alone, questions like what is this. How to do this? New and horrible banking software? Concurrent audit is an examination, which is contemporary to the occurrence of transaction or is carried out as near to it as possible. Thus concurrent audit is a regular process that has to be carried out round the year at a branch on an on going basis. Concurrent audit is an independent appraisal activity. &RQFXUUHQW $XGLW,QWURGXFWLRQ Another key feature of the CCRA’s new approach to a large business audit is the concurrent audit. A policy has been developed to facilitate concurrent audits that include the participation of provincial auditors and customs duties auditors.
The word concurrent itself defines its meaning, concurrent means happening at the time. Concurrent Audit means doing the examination of the financial transactions at the time of happening or parallel with the transaction. Most of the new articles who have been assigned to do the concurrent audit become terrified when they have to go to bank alone, questions like what is this.
How to do this? New and horrible banking software? It is normal to be nervous at the first time but later on everything starts running smoothly. In my case such things had happened even I was out of station alone.
So instead of getting lost what to do, we just can learn the things from there. If we do the concurrent audit of banks very precisely then we can learn a lot of banking core knowledge, new banking software, RBI norms and many more.
So for the aid of new articles doing concurrent audit I am going to write this article so that they can make intellectual profit from this. Cash Balance:. Every morning we shall have to check the cash balance of Cash Book of Bank in which all details regarding cash balances are written on daily basis and manager and cashier do the authorization.
Once in the month we have to do physical verification of cash in hand with bank and ATM if any surprisingly and if any discrepancy found shall be reported in the report. KYC Policy:. This is the most sensitive and crucial part of the concurrent audit.
The major things we observe in KYC checking are identity proof and address proof. In AOF there is clearly mentioned the required documents in order to open the account in bank. Recently RBI has fined some of the nationalized banks and other big banks for non-adherence of KYC norms and hence as a concurrent auditor we should ensure the KYC adherence of the customers and any irregularities should be reported duly in the report. We should also discuss the major irregularities with branch officials and look forward for the solution.
Loans and Advance Checking:. The most sensitive part of banking operation s Loans and Advances and their compliances. Document register is nothing just a register maintained by bank for their advances, in which they usually write name of the party, details of sanction made, papers submitted by party to bank etc.
Following are the crucial points to verify any advances:. Generally we have to look through some high balance account and the trail of transaction. We have to see whether interest code and rates are correctly fed in to the system, any change in interest rates are effectively fed into the system or not etc.
If your auditing branch is authorized to do foreign exchange transactions then you are lucky that you got to know about forex. In forex, we look through the exchange rate change and their correct valuation in books. Available foreign exchange with bank, profit and loss in foreign exchange. There are some RBI guidelines regarding foreign exchange and we have to see the adherence of same. Income leakage:. This is the most important and sensitive part of concurrent audit.
In most of the banks there are some income leakage and we have to find out that. Generally income leakage arises due to following reasons and we have to look that:. To overcome these types of revenue loss of bank we as an auditor go through the calculation and genuineness of the different charges.
Though banks are working on highly intelligent software but due to human errors such kinds of leakage arise and we have to minimize those. Both the ICAI and Bank provides the manual for revenue audit, if we go through that very carefully then we can understand the leakage more effectively. We have to generate various MIS reports from the system and analyze them.
On the other hand, if bank does overcharge of such things then the false performance of bank is shown and customer may be misguided due to this. It is the prima facial duty of auditor to shoe the true and fair performance of the clients. Housekeeping and computer:. As a concurrent auditor we have to check overall housekeeping maintenance of the branch.
Whether the branch is located in safe area or not, what safety vaults are adopted by the bank, safety of lockers, computer, its software and its security etc. It is also an important job of bank to provide remittance facility to their customer. We as an auditor should check the trail of remittance. There are other so many fields of banks. And as far as possible we have to cover all the areas, because there may be fraud prone areas. We have to see the clearing process of cheque, Bills for collection and other bills should be checked properly.
Email Address. Moible Number. Requirement Details. Concurrent Audit. To conduct the concurrent audit of banks we should generally look forward following things: 1. Cash Balance: Every morning we shall have to check the cash balance of Cash Book of Bank in which all details regarding cash balances are written on daily basis and manager and cashier do the authorization.
KYC Policy: This is the most sensitive and crucial part of the concurrent audit. Loans and Advance Checking: The most sensitive part of banking operation s Loans and Advances and their compliances. Pin It on Pinterest.