A PROJECT ON

BANK AUDITING
Submitted by
Reshma Singh
T.Y.BBI Sem-V
Roll No.48
(2015-2016)

Project Guide
DR.MEERA RAJAWAT
Affiliated to University of Mumbai
S.K.SOMAIYA COLLEGE OF ARTS, SCIENCE
AND COMMERCE
AURONBINDO, VIDYANAGAR
VIDYAVIHAR (EAST). MUMBAI-400077

ACKNOWEDGEMENT

I, Ms.Reshma Singh, would take this opportunity to thank the University of

Mumbai for providing me an opportunity to study on a project on Bank Auditing.
This has been a huge learning experience for me.
With great pleasure I take this opportunity to acknowledge people who have made
this project work possible.
First of all I would sincerely like to express my gratitude towards my Project
Guide Dr.Meera Rajawat for having shown so much flexibility, guidance as well
as supporting me in all possible ways whenever I needed help. I am thankful for
the motivation provided by my Project Guide throughout and helped me to
understand the topic in a very effective and easy manner.
I would also like to thank the Principal Dr. Sangeeta Kohli and other teaching
faculties of the college, my colleagues, library staff and other people for providing
their help as and when required to complete this project.
I acknowledge my indebtedness and express my great appreciation to all people
behind this work.

Signature of the Student.

INDEX

Sr.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

Particulars
Executive Summary
Objective
Research Methodology
Limitations
Chp:1) Introduction
Chp:2) Control System
Chp:3) Statutory Bank Audit
Chp:4) Technology in Bank Audit
Chp:5) Fraud Detection
Chp:6) Tax Audit
Chp:7) Concurrent Audit
Chp:8) Forex Audit
Chp:9) Statutory Audit of Bank Treasury
Chp:10) List of RBI Circulars/ Guidelines
Annexure
Conclusion
Bibliography

Page No.

EXECUTIVE SUMMARY

A banking companies are requires maintaining the books of account in accordance with section
209 of the companies act, 1956. Banking generally a sound internal control system their day to

day transaction. The auditor has to evaluate such system carefully. The fundamental requirement
of an audit, as regards reporting on statement of account can be discharged from the examination
of the internal checked and verification of assets and liabilities by making a comparison and
reconciliation of balance with those in the year and that of amount of income and expenses by
application of test checks.
The banking regulation act casts greater responsibilities on the directors of banks as compared to
those of other companies in the matter of supervision over their working. Therefore, they
exercise, or are expected to exercise greater supervision over the affairs of bank. The auditor is
entities to rely on such supervision and to limit his checking to test checks. The financial position
of a bank is depended on the condition of assets, loan, investment, cash balanced and those of its
liabilities and fund. Their verification forms an important part of the balance sheet. Most of the
bank has their own internal audit or inspection department entrusted with the responsibilities of
checking the account of various branches. The statutory auditor may not, therefore, duplicate
work.

Objectives of the Study: