While conducting a forensic audit the auditor should follow certain steps which are as follows: 1. Initialization Meeting with the client accepting the engagement: In order to understand important facts, players, and issues, etc., the investigator must meet the client. It is to be considered initially that whether his form has the necessary skills...
Continue readingNational Bank for Agriculture and Rural Development (NABARD)
There was no institutional credit arrangement for Agriculture and Rural credit in India till the 1970s. Reserve Bank of India and Agricultural Refinance and Development Corporation (‘ARDC’) looked after this need. Therefore, the Reserve Bank of India (RBI) formed a Committee on 30 March 1979 to Review the Arrangements For Institutional Credit for Agriculture...
Continue readingChecking of various Control Procedures in Banks
While checking various control procedures in the bank there are certain points you need to take into consideration. So in this article let’s see the checking of controls in various aspects. General control The staff and officers of the bank should be shifted from one position to another frequently and without prior notice, this...
Continue readingAudit checklist for investment and credit in Non-Banking Financial Company (NBFC)
Checklist related to Investments Physical Verification The auditor should physically verify the securities held by NBFC. Is there any security that is lodged with an institution for a bank robber a certificate from the bank/institution to the effect must be verified. Income recognition Verify that dividend income wherever declared by a company, has been...
Continue readingInvestigations into the affair of the company
An investigation into the affairs of the company can be conducted by Central Government, Investigations by Serious Fraud Investigation Office (SFIO), and it can be conducted in any other case. So let’s check the investigation in different cases. 1) Investigation through the order of Central Government: The central government can order an investigation and...
Continue readingThe General Approach for Investigation
About: The general approach for investigation is a condition by the legal requirements. The general approach for investigation should, therefore, be formulated having regard to the terms of reference, scope, period, program, and procedure of the investigation and the attending legal requirements as explained below: Clarity of terms of reference The Inspector should ensure...
Continue readingAUDIT OF FIRM
Appointment of Auditor: – The auditor to a firm is usually appointed by the partners either on the grounds of a decision taken by them or to comply with a condition in the partnership agreement. The remuneration is also fixed by the partners. It is important that the letter of appointment should simply state...
Continue readingConcurrent Audit in Bank
Meaning: It is an examination which is conducted within a few time with the occurrence of transactions. It tries to shorten the time gap between a transaction and its examination by an independent person who is not involved in its documentation. There is an emphasis in favor of deep checking in key areas rather...
Continue readingCancellation or Surrender or Deactivation of DIN
The Central Government or Regional Director, Noida or any officer authorized by Regional Director may, upon being satisfied on verification of particular or documentary proof attached with the application received along with fee from any person cancel or deactivate the DIN in following cases: Where DIN is found to be duplicated in respect of...
Continue readingReport V/S Certificate Issued by an Auditor
Certificate: A certificate is written confirmation of the accuracy of the facts stated therein and does not involve any estimate or opinion. Certificates are often required by government authorities in support of statements or other information prepared by an enterprise. Such certificates represent that the auditor has verified certain figures and is satisfied with...
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