Annexure I Executive Summary Sheet

(To be on the letterhead of the system auditor)

System Audit Report for the period _____ to _____)

Suggeste Deadline
Status / Risk Audit Root d for the
Observation Description Departme Nature of Rating of TOR Audited Cause Impact Correctiv Correctiv Verifie Closin
Audit Date No of Finding nt Findings Findings Clause By Analysis Analysis e Action e Action d By g Date

I undertake that I have adhered to and complied with the system audit framework / prerequisites / guidelines of SEBI circular no.
CIR/MRD/DMS/34/2013 dated November 6, 2013 on Annual System Audit of Stock Brokers / Trading Members and further
notices / clarifications / guidelines issued by SEBI / Exchange.

I further confirm that I do not have any conflict of interest in conducting fair, objective and independent audit of the Stock
Broker. Further, the directors / partners of my Audit firm are not related to the stock broker including its directors or
promoters either directly or indirectly.

I further confirm that all the branches where IML-IBT / STWT/ DMA facility is provided, have been audited and
consolidated
_________ report has been submitted.
___
Signature
of the
Auditor &
Auditing
firm)
DISA/CIS
A/CISM/CI
SSP
Registratio
n Number:
Date:
Place:

Description of relevant Table heads

1. Audit Date This indicates the date of conducting the audit.
2. Description of Findings/ Observations Description of the findings in sufficient detail, referencing any accompanying evidence (e.g. copies of
procedures, interview notes, screen shots etc.)
3. Status/ Nature of Findings - the category can be specified for example:
Compliant
progress
Observation
Suggestion
4. Risk Rating of Findings A rating has to been given for each of the observations based on their impact and severity to reflect the risk exposure, as
well as the suggested priority for action.
Rating Description
 Weakness in
control those
represent
exposure to
the
organization
or risks that
could lead to
instances of
non
compliance
with the
requirements
of TORs.
These risks
need to be
addressed
with utmost
HIGH priority.

Potential
weakness in
controls,
which could
develop into
an exposure
or issues that
represent
areas of
concern and
may impact
internal
controls.
These should
be addressed
reasonably
MEDIUM promptly.
 weaknesses
in controls,
which in
combination
with other
weakness
can develop
into an
exposure.
Suggested
improvement
s for
situations not
immediately/
directly
affecting
LOW controls.

5. Audit
6. TOR Clause
Root cause The
Analysis TOR clause
A detailed corresponding
analysis to this
on the cause observation
of the
nonconformity
7. Impact Analysis An analysis of the likely impact on the operations/ activity of the organization
8. Suggested Corrective Action The action to be taken by the broker to correct the nonconformity