- Audit of banks
- Provision relating to audit.
- Audit and assurance for bank and financial institution.
- Audit of insurance companies
- Fundamental principles of insurance
- Accounting principle for preparation of financial statement
- Disclosure forming part of financial statement
- General instruction for preparation of financial statement
- Constraints - Managerial reports
- Preparation of financial statement
- Report of quality assurance team and salvage register
- Revenue account
Various people such as owners, shareholders, investors, creditors, lenders, government etc. uses the final account of a business concern for different purposes. All these users need to be sure that the final accounts prepared by the management are reliable. An auditor is an independent expert who examines the accounts of a business concern and reports whether the final accounts are reliable or not. The term audit is derived from the Latin term ?audire? meaning ?to hear'. In early days an auditor used to listen to the accounts read out by the accountant in order to check them. Auditing is as old as accounting. It was in use in all ancient countries such as Mesopotamia, Egypt, Greece, Rome, U.K. and India. The Vedas, Ramayana, Mahabharata contain references to accounting and auditing. Arthashsastra by Kautilya gives detailed rules for accounting and auditing of public finances. The Mauryas, the Guptas and the Mughals had developed and accounting and auditing system to control state finances. Thus, basically accounting and auditing had their origin in the need for the government to control the income and expenditure of the state and the army. The original object of auditing was to detect and prevent errors and frauds. With increasing number of companies, the companies' acts in different countries began providing for compulsory audit of accounts of companies. Thus in the U.K. audit of accounts of limited companies became compulsory in 1900. in India, the companies act, 1913 made audit of company accounts compulsory. With increase in size of companies the object of the audit also shifted to ascertaining whether the accounts were ?true and fair? rather than ?true and correct?. Thus the emphasis was not on arithmetical accuracy but on fair representation of financial affairs. The international accounting standards committee and the accounting standards board of the institute of chartered accountant of India have developed standard accounting and auditing practices to guide the accountants and auditors in their day-to-day work.
[...] In the case of all companies, compliance with accounting standards is mandatory under section 211 of the companies act Section 211(3b) provides that where the financial statements of a company do not comply with the accounting standards, the following disclosures should be made in its p&l a/c and balance sheet: The deviation from the accounting standards; The reasons for such deviation; and The financial effect, if any, arising from such deviation. While requiring the companies to comply with the accounting standards, the companies act casts a duty upon the auditor also to examine compliance with accounting standards. [...]
[...] Apart from the audit report on the financial statements, the auditor of a nationalized bank, State bank of India , any of its subsidiary, or a banking company has also to prepare a long form audit report(LFAR).The auditor of the banks is also called upon to give reports and certificates on certain other specified matter Special audit:- In addition to the normal annual audit, a special of the banking company can be ordered by RBI under sec 30(1b) of the Banking Regulation Act. [...]
[...] Premium had not immediately been collected due to furnishing of a bank guarantee or cash deposit but either the deposit or guarantee had fallen short or has expired or the premium had been collected beyond the stipulated time limit. Premium had not been collected due to risk cover being increased or where stipulated limits have been exhausted in respect of open declaration policies. installment of premium have not been collected in time in respect of certain categories of policies, e.g. [...]