1.RBI master circular on IRAC norms to be read and  kept handy -hard as well as soft copy

2.Finacle option menu list needs be kept handy

3.Work allocation sheet to be prepared as per the practical exposure of the Audit staff

4.Quarter end closing circular , internal audit report, concurrent audit reports , system audit report , RBI report,  revenue audit repots and last Statutory audit reports to be analysed.

5.Ask for the business mix and major thrust area wrt advances and advances over 5crores and 1crore to be asked for.

6.Potential NPA or Mock Run report for last 3 months needs to be called for.

7.Last year MOCs and it’s effect in books subsequent to completion of audit whether given or not to be seen alongwith copy for our record.

8.The asset classification wise and facilitywise advance portfolio converted  in excel alongwith security value , date of identification of NPA, Security value is to be asked for..the entire IRAC norms exercise will be easy if this excel sheet is analysed using excel tools..major work is reduced and you will find errors like no security value entered or same primary or collateral value is entered or collateral is there but primary value not entered etc which can be enquired into..the whole provision is based in security value so ensuring this is very important.

9.Excel sheets for valuation not done or overdue for more than 3 years, pending stock statements for more than 6months, Expired insurance, Stock audits pending, Accounts pending for renewal beyond 6months- these are technical reasons for which advance needs to be classified as NPA..hence go through these reports or lists.

9a. Debit balances in SB/CA and CC aaciy ts report and TOD/TOL daily reports to be scruitinised.

9b. Exception report for last 3 months to be reviewed.

10.Quarter to quarter movement of NPA with NPA as of 31st March of previous year to be compared.This will give you link to advances which are upgraded or restructured or written off.

11.Then call for NPA movement statement sent to controlling offices too and scruitinise it.

12.Suspense and sundry ledgers to be scruitinised

13.CC accounts to be verified for Interest debits and total credits in the accounts this is one of the reason for identifying  and classifying NPA  in sticky or problematic account which you can identify from the technical reason  NPA from various reports.

14.Cash deposits at the year end or transfers from other accounts in last day and retransfer on the next day if the quarter in CC accounts shows accommodation entry to bring it out from NPA . dat needs to be verified.

14a. CC accounts with no credits in the accounts for the last quarter also needs to be classified as NPA so check that.

15.Term loans to be  scruitinised with repayment options and by exlpoding the repayment option to see interest and principal outstanding.

16.Gold loans to be physically verified randomly for availability of security.

17.Loan or OD againt Third party TDR to be specifically verified.

18.Frauds reported during the audit period to be verified .

19.Physical verification of security as per the records for advances to be done by the staff .

20.NPA sets to be signed needs to be checked wrt opening balance as on 1.4.2015…this is must.

21.ATM reconciliation and inter bank and branch reconciliation files to be seen.

22.Verification of Cash and ATM cash for on-site ATM to be done .

23.Physical verification of sensitive stationery needs to be done.

24.Entire GL with sub heads can be asked to be converted into excel with opening and closing balances and transactions during the year..this will give you accounts where balances are constant and needs to be enquired into.This is TB scrutiny.

25.Furniture and fixed assets statement to be scruitinised.

26.TDS ledgers to be scruitinised.

27.Statutory payments related to staff to be verified.

28.Account opening cards esp Current account to be randomely verified .

29.Interest Subvention scheme heads to be verified.

30.ECGC premium paid or pending ledger and reports to be verified.

31.Claims acknowledged as debts and pending are to be verified.

32.Bank guarantees and LCs devolved if any etc to be verified.

33.Closing provisions wrt exps and prepaid whether booked or not to be verified.Reversal if provisions and prepaid also needs to be ensured.

34.Major Advances sanctioned during the year to be verified and commented upon.

35.Take previous year Statutory audit report with LFAR and ask the staff at office to compile the old  details, send the observations on daily basis to them to make changes or if one audit staff does it online at the branch itself will save time in submission of Audit report and LFAR.

36.Review the entire work, discuss onlune with the branch staff and manager.

37.Ask for designated min 2 computers with audit login before starting the audit itself..This should be one of the requirements while calling for various reports and files.

38.Window dressing wrt deposits and advances to be analysed on various dates like 31.3.15, 1.4.15, 8.4.15, 31.3.16,1.4.16, 8.4.16 ..trend analysis to be seen wrt deposits , advances and NPAs

 39.Other items related to housekeeping issues and LFAR to be verified.

40.Time barred accounts where no AOD or DBC is obtained also needs to be commented upon.

41.Training to staff, coordination within audit Team , ongoing discussions with seniors in the Team, collecting audit working papers and documentary evidences, taking management representation and TDS certificate  before signing the reports and sets is  must. Overlapping of the work to be strictly avoided.

42.Email ID and contact nos .of branch officials, mef  expert panel to be kept handy.

These are practical things you need to ensure besides the list of certificates, statements , reports etc