What do you check in a revenue audit?
Table of Contents
What do you check in a revenue audit?
INDICATIVE SCOPE OF REVENUE AUDIT a) Verification of all Income heads and Expenses heads w.r.t. income recognized and expenses charged. b) Correct recovery of charges as per the Bank’s schedule of charges. c) Application of Interest on Advances. d) Application of Penal Interest on Advances.
What do you check in a bank audit?
An auditor should look at the following documents for checking the bank preliminary process:
- Loan Application.
- Prescribed Application form.
- KYC Compliance.
- Project Report, Projected P&L, Balance Sheet & Cash Flow Statement.
- Latest Audited Financial Statements.
- Board Resolution for Availing the Credit Facilities.
How do you check completeness in revenue audit?
They can check the completeness of revenue recording in the financial statements by verifying numerical sequence of invoices. When there is a sales increase the accounts receivables analysis should also be done and credit policy should be reviewed.
How do you check revenue leakage in bank audit?
For income leakage, following areas can be looked into by an auditor:-
- For income leakage, following areas can be looked into by an auditor:-
- – Cheque return charge.
- – Solvency certificate charges.
What is bank revenue audit?
Revenue audit is the audit of items governing income & expenditure of banks, basically this type of audits is conducted with a view to verify the accuracy, relevance of expenditure incurred & Incomes earned by the banks according to applicable latest circulars, notification.
What is revenue testing?
A total revenue test approximates the price elasticity of demand by measuring the change in total revenue from a change in the price of a product or service. The total revenue test assumes all other factors that may influence revenue will remain constant during the testing period.
How is Bank audit performed?
Definition: Bank audit is a procedure performed by an auditor appointed by RBI and ICAI to verify the financial statements of the banking institutions and to verify whether the banking concerns are following the law and compliances or regulatory framework applicable on them or not.
How do you check for occurrence of revenue?
Occurrence
- Select a sample of recorded sale revenue transactions.
- Vouch the selected transactions to sale invoice to ensure transactions recorded are based on sale invoices.
- Trace sale invoice to customer order and bill of lading to ensure sales have actually happened and goods have been shipped to customers.
How do I verify a bank audit?
The essential elements to verify in a statutory audit of a bank are the following.
- Cash Verification Procedure.
- Tax-Related Items.
- Verification of Loan Accounts.
What is MOC in banks?
Memorandum of Changes (MOC) Memorandum of Changes more often referred to as MOC is an important document enclosed with the Bank Audit Report whenever the Auditor observes significant issues effecting the Financial Statements of the Bank.