The Institute of Chartered Accountants of India (ICAI) has released an updated version of its “Manual on Concurrent Audit of Banks” in 2016. This new edition reflects the revised guidelines issued by the Reserve Bank of India (RBI) in 2015 and covers various important aspects of concurrent audit in banks. This article will delve into the key features and components of the updated manual, highlighting its value as an essential resource for professionals in the banking and auditing sectors.
Reserve Bank of India’s Revised Guidelines
In July 2015, the Reserve Bank of India updated its concurrent audit guidelines, originally published in 1996. The new guidelines emphasize effective controls, the importance of scrutinizing high-risk transactions, and coverage of fraud-prone areas. In response to these updated guidelines, ICAI’s Internal Audit Standards Board (IASB) thoroughly revised the “Manual on Concurrent Audit of Banks,” which now reflects the impact of various new and revised RBI circulars issued during the intervening period.
Key Features of the Updated Manual
The 2016 edition of the Manual on Concurrent Audit of Banks is a comprehensive, self-contained document that touches upon almost all critical aspects of concurrent audit in banks. The updated manual includes the following significant features:
i) Latest Circulars and Directions: The manual incorporates guidance on the impact of various latest circulars and directions issued by the Reserve Bank of India, ensuring that it remains up-to-date and relevant.
ii) Three-Part Structure: The manual is divided into three parts, focusing on understanding the banking business and its legal framework, the domain of concurrent audit, and a concurrent audit checklist with a focus on the core banking system.
iii) Concurrent Audit Checklist: In line with the 2015 RBI Guidelines, the manual contains a detailed concurrent audit checklist to help auditors navigate the auditing process effectively.
iv) In-depth Coverage of Important Areas: The manual includes chapters dedicated to crucial areas such as Treasury, Forex, and Core Banking Solutions, providing comprehensive guidance for auditors.
v) Accompanying CD: As a ready reference, the manual is accompanied by a CD that contains the text of all important Master Circulars and Master Directions issued by the RBI, which impact concurrent audit.
ICAI’s Manual on Concurrent Audit of Banks (2016 edition)
The 2016 edition of ICAI’s Manual on Concurrent Audit of Banks is an indispensable resource for professionals in the banking and auditing sectors. By incorporating the latest guidelines and circulars from the Reserve Bank of India, the manual ensures that auditors have access to accurate and up-to-date information. The detailed checklist and in-depth coverage of key areas make this manual a valuable tool for conducting thorough and effective concurrent audits in banks.
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