Category: Audit

Due Diligence Report Format by Company Secretary for Bank

DILIGENCE REPORT To, The Man­ag­er,                                      (Name of the Bank) I/We have exam­ined the reg­is­ters, records, books and papers of                 Lim­it­ed hav­ing its reg­is­tered office at……………………………………………………… as required to be main­tained under the Com­pa­nies Act, 1956 (the Act) and the rules…

ICAI Issued Guidance Note on audit of Banks

The Guid­ance Note pro­vides an insight into the bank­ing indus­try in India and how they car­ry out their day to day func­tions. It also dis­cuss­es in depth the var­i­ous impor­tant items on the finan­cial state­ments of a bank, its pecu­liar­i­ties, manner…

Significant reasons for adopting SARBANES-OXLEY ACT (SOX)

A vari­ety of com­plex fac­tors cre­at­ed the con­di­tions and cul­ture in which a series of large cor­po­rate frauds occurred between 2000–2002. The spec­tac­u­lar, high­ly pub­li­cized frauds  exposed sig­nif­i­cant prob­lems with con­flicts of inter­est and incen­tive com­pen­sa­tion prac­tices. The analy­sis of…

Background of SARBANES-OXLEY ACT (SOX)  

Sarbanes–Oxley was named after spon­sors U.S. Sen­a­tor Paul Sar­banes (D‑MD) and U.S. Rep­re­sen­ta­tive Michael G. Oxley (R‑OH). As a result of SOX, top man­age­ment must indi­vid­u­al­ly cer­ti­fy the accu­ra­cy of finan­cial infor­ma­tion. In addi­tion, penal­ties for fraud­u­lent finan­cial activ­i­ty are much more severe. Also,…

RISK BASED AUDIT OF BANKS

His­tor­i­cal­ly, the audit sys­tem in banks has been con­cen­trat­ing on trans­ac­tion test­ing, test­ing of accu­ra­cy and reli­a­bil­i­ty of account­ing records and finan­cial reports and adher­ence to legal and reg­u­la­to­ry require­ments. How­ev­er, in the chang­ing sce­nario such test­ing by itself would…