How Would You Audit The Accounts Of Bank?

The auditor must note that there is a need of affective internal control system. The auditor can ascertain, evaluate and test the system. The auditor can count the cash with bank. The cash counting must be surprise in order to note the efficiency of cashier. The procedure establishment by the bank for receipts and payments, of cash must be carried out. The cash with state bank may be noted from returns. The auditor can see that investments are in safe custody. The investment register may be checked. He must see that sanctions against loans are note included in investments. The valuation of investments must be noted.

The auditor checks the amount of advances. The amount of debtors may be examined. The particulars of advances like overdrafts, cash credits, and loans should be examined with balance sheet figures. The auditor can examine the bills discounted and purchased register. It is a temporary loan given to clients. The amount of unexpired discounts should be checked. Re discounting of bills may involve contingent liability and it should be noted. The auditor can check the amount of cash with other banks. He can confirm the balance through letters. The balance with other banks is temporary loan. The vouchers and registers should be examined.