Our Banking Audit & Advisory Services

Statutory Audit of Banks

Statutory audits are mandated by the Banking Regulation Act, 1949 and supervised by the Reserve Bank of India (RBI). As an empaneled audit firm, we conduct statutory audits for banks to ensure that their financial statements present a true and fair view of their financial position. Our statutory audit services include:

  • Verification of financial statements in compliance with Indian Accounting Standards (Ind AS) and regulatory norms.
  • Assessment of asset classification, provisioning norms, and non-performing assets (NPAs) to ensure compliance with RBI guidelines.
  • Review of loan portfolios, investment decisions, and capital adequacy to assess financial health.
  • Ensuring compliance with RBI’s prudential norms on liquidity, exposure limits, and capital requirements.

By conducting a meticulous statutory audit, we help banks mitigate risks, identify financial discrepancies, and maintain investor and stakeholder confidence.

Concurrent Audit of Banks

Concurrent audits are real-time transaction audits designed to detect and prevent fraud, operational risks, and compliance lapses at an early stage. As an integral part of the banking risk management framework, our concurrent audit services include:

  • Regular monitoring of daily banking transactions to ensure compliance with RBI guidelines.
  • Verification of KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance to prevent financial fraud.
  • Loan disbursement audits to check for irregularities in the sanctioning process.
  • Review of foreign exchange transactions, trade finance, and treasury operations to ensure adherence to banking norms.
  • Checking adherence to operational policies, interest calculations, and fund transfers.

Our concurrent audit services help banks enhance operational efficiency, improve financial integrity, and minimize regulatory risks.

Internal Audit of Banks

Internal audits serve as a self-assessment mechanism for banks to evaluate and improve their internal controls, risk management practices, and operational efficiency. Our internal audit services cover:

  • Assessment of internal control mechanisms to detect inefficiencies and gaps.
  • Verification of credit policies, loan approvals, and risk exposure.
  • Compliance checks for RBI and SEBI regulations (for listed banks).
  • Fraud detection, forensic accounting, and cybersecurity risk analysis.
  • Evaluation of treasury functions, asset-liability management (ALM), and investment portfolios.

By conducting thorough internal audits, we help banks streamline processes, strengthen governance, and safeguard against financial risks.

Stock & Receivables Audit for Bank Borrowers

Banks that provide working capital loans to businesses must ensure that the borrower’s stock and receivables are adequate and accurately reported. Our firm assists in:

  • Conducting inventory audits and physical verification of stock.
  • Ensuring the authenticity and valuation of book debts (receivables).
  • Assessing potential financial misstatements or fund diversion risks.
  • Verifying compliance with bank loan conditions and collateral requirements.

This audit is crucial in mitigating loan default risks and ensuring banks lend against genuine and sufficient collateral.

Revenue Audit of Banks

Revenue audits help banks identify revenue leakages, verify income recognition policies, and ensure financial accuracy. Our revenue audit services include:

  • Reviewing the accuracy of interest, fees, and commission calculations.
  • Checking adherence to income recognition and provisioning norms for NPAs.
  • Ensuring proper recognition of accrued income from investments and advances.
  • Detecting possible revenue leakages and recommending corrective actions.

This audit helps banks maximize revenue efficiency while ensuring regulatory compliance.

Information System (IS) & Cybersecurity Audit

As digital banking grows, cybersecurity threats and IT governance issues have become major concerns. Our IS and cybersecurity audit services help banks:

  • Assess IT system vulnerabilities and compliance with RBI’s IT security guidelines.
  • Conduct core banking system (CBS) audits to ensure data integrity.
  • Evaluate access control mechanisms, data security policies, and cyber risk management.
  • Assess transaction security, encryption policies, and fraud detection systems.

We help banks safeguard their IT infrastructure against cyber threats and ensure compliance with regulatory IT frameworks.

Risk-Based Audit & Basel III Compliance

Risk-Based Internal Audits (RBIA) ensure that banks comply with Basel III norms and RBI’s risk management framework. Our services include:

  • Assessing credit, market, and operational risks.
  • Reviewing stress-testing procedures and liquidity risk frameworks.
  • Evaluating capital adequacy and exposure limits.

This audit helps banks align their risk strategies with global banking regulations.

Due Diligence & Forensic Audit

In cases of fraud, financial irregularities, or mergers & acquisitions, banks require forensic audits and due diligence services, which include:

  • Investigating fraudulent transactions, money laundering, and financial frauds.
  • Tracing fund diversion and identifying suspicious activities.
  • Reviewing books of accounts of companies applying for loans or restructuring.

Our expertise in forensic audits helps banks detect financial misconduct and take corrective action.

Credit Audit & Loan Portfolio Review

Banks need credit audits to assess the health of their loan portfolios. Our firm provides:

  • Review of loan appraisal and credit risk assessment processes.
  • Verification of NPA classification and provisioning norms.
  • Assessment of loan recovery mechanisms and risk mitigation strategies.

This ensures that banks maintain a strong and balanced loan portfolio.

Compliance Audit & RBI Inspection Support

Banks undergo RBI inspections and various regulatory audits. We assist in:

  • Pre-audit assessments to identify compliance gaps.
  • Ensuring adherence to all RBI circulars, directives, and prudential norms.
  • Providing documentation support and representation before RBI authorities.

Our compliance audits prepare banks for regulatory scrutiny and improve their governance frameworks.