bank audit final

8/7/2019 bank audit final

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SOUTH INDIAN EDUCATION SOCIETY COLLEGE OF

COMMERCE AND ECONOMICS

Prof. Shardha


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Project Byb Devanshi Shah 61b Ankita Shah 62b Hasti Bhanushali 63b Yash Thakker 64b Nitin Phull 65


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Index Introduction

y Ba nk a udity U nion Ba nk of Indi a

App ointment letter LF AR

Audit Re port


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IntroductionBank Auditing is designed to help you understand the latest issuesand regulatory developments that affect bank auditing andaccounting. This monthly newsletter addresses both internal andexternal auditing concerns and provides guidance on efficiently completing bank auditing and accounting tasks.

The Bank Notes section of each issue provides brief summaries of relevant agency actions and announcements as well as new reportsand research on topics of interest to banking professionals.

In the year 1919, the Union Bank of India underwent a registrationprocess as a limited company in Mumbai. Our Father of the nation'Mahatma Gandhi' had done the inauguration of this bank. In 1947,UBI had 3 branches in Mumbai and 1 in Saurashtra. In 1975, it wasassigned the status of the national bank by the government. At that

point of time, it was managing 240 branches across 28 states.In the year 2007, Union Bank of India made its presence felt in theinternational arena by opening representative offices in the differentdestinations


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App ointment Letter

Union Bank of IndiaR egd. Office

CA Firm Name

Kind attention: CA Name

Dear Sir,

Subject: App ointment of auditors for the A ccounting year

We are glad to inform you that at the Second Annual Generalmeeting of the company, held on date you are appointed as Auditorof the Company to hold office the conclusion of the next AnnualGeneral Meeting on a remuneration of ( R upees) plus out of pocketexpenses.

Kindly convey your acceptance

Thanking you,

Union Bank of India

Yours faithfully,

Director


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LONG FORM A UDIT REPORT [LF A R] TO M A N A GEMENTIN C A SE OF B A NK BR A NCHES

Branch

Code No.

Zonal Office :

R egion :

Circ le

A UDITS / INSPECTIONS

i) Is the branch coveredby concurrent audit or

any other audit /inspection during the year?

No concurrent audit atthe branch, inspection at

the branch by head office was conducted duringthe year.


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ii) In framing your auditreport, have youconsidered the majoradverse commentsarising out of the latestreports of the previousauditors, concurrentauditors, stock auditors,concurrent auditors,stock auditors orinternal auditors, or inthe special audit reportor in the InspectionR eport of the R eserveBank of India ? Statethe various adversefeatures persisting inthe branch, thoughbrought out in theseaudit / inspectionreports.

Yes


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FR A UDS

Furnish particulars of frauds discoveredduring the year underaudit at the branch,together with yoursuggestions, if any, tominimise the

possibilities of theiroccurrence.

(Annexure XI)

No frauds were detectedduring the year.


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MISCELL A NEOUS

i) Does the examinationof the accounts indicatepossible windowdressing?

No

ii) Does the branchmaintain records of allthe fixed assetsacquired and held by itirrespective of whetherthe values thereof ordepreciation thereonhave been centralised? Where documents of title in relation tobranch or otherbranches are availableat the branch, whetherthe same have been verified?

Yes


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iii)

Are there any othermatters, which you as abranch Auditor wouldlike to bring to thenotice of themanagement or theCentral Statutory Auditors? (Annexure XI)

R efer to our detailedaudit observations


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For branches dealing in recovery of Non Performing Assets such as Asset R ecovery Branches.

This annexure is not a ppl icab le to this branch

For Branches dealing in clearing house operations n ormally referredto the service branches.

This annexure is not a ppl icab le to this branch

For Company

Chartered Accountants

Proprietor

Membership No.


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To,

The Branch Manager,

Union Bank of India

Branch,

Mumbai

Dear Sir,

Subject: Detailed audit observation report March 2009.

R eference: Statutory Branch Audit of your branch for the yearended

We have completed our audit of your Branch. Our observations andsuggestions are as under:

CASH IN HAND We have physically verified the cash on hand on 02.04.2009 R s.54,60,371/-. It was tallying with the cash-book and GeneralLedger. Branch cash retention limit is R s. 18,00,000/- as perinformation given to us by the Branch Manager. It was observed


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that the limit was exceeded on 329 days during the year underaudit. Some of them are reported as under:

Date Amount Date Amount

29.04.08 63,01,552 10.10.08 63,54,530

15.05.08 60,06,757 21.11.08 82,03,941

24.06.08 64,13,591 01.12.08 63,08,104

09.07.08 79,67,601 22.01.09 60,01,69421.08.08 54,02,478 28.02.09 59,85,670

19.09.08 49,56,479 30.03.09 63,12,878

It is informed to us by the branch that approval is sought for theexcess cash retention from the higher authorities. The same isobtained after the event takes place.

STAMPS ON HAND AND PR INTING AND STATIONE R Y

The quantitative reconciliation is made and it is tallying with thephysical stock.

ADVANCES

DOCUMENTATION


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In case of documents given in support of some of the advancessanctioned by the branch, it was observed that the documents arein the regional language and therefore it was not possible for us to verify the same.

MONITO R ING

In some cases it was observed that the installments are not paidregularly.

OTHER M A TTERSSER VICE TAX PAYMENTS - CENVAT CR EDIT

It is observed that the branch is not claiming the CENVAT creditin respect of input services such as Telephone Charges. Necessary guidelines are required to be issued to the branches by HO in this

regard so as to enable them to avail the same.

For Company

Chartered Accountants

Proprietor

Membership No


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Audit report1. We have audited the attached Balance Sheet of Union Bank of India as at 31st March, 2010, the Profit and Loss Account and CashFlow Statement annexed thereto for the year ended on that date, in

which are incorporated the returns of 19 branches, 1 Treasury Branch, 18 R egional Offices audited by us and 2176 branches, 34Service Branches and 1 Foreign Branch audited by other auditors,609 unaudited branches and 84 offices centers, the returns of whichare certified by the Branch Manager. The Branches audited by us andthose audited by other auditors have been selected by the Bank inaccordance with the guidelines issued by the R eserve Bank of India.These un-audited branches account for 1.09 % of advances, 4.61 % of deposits, 0.55 % of interest income and 3.15 % of interest expenses.These financial statements are the responsibility of the BanksManagement. Our responsibility is to express an opinion based onour audit.2. We conducted our audit in accordance with auditing standardsgenerally accepted in India. Those standards require that we planand perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significantestimates made by the Management, as well as evaluating the overallfinancial statement presentation. We believe that our audit providesa reasonable basis for our opinion.3. Subject to the limitations of the audit indicated in paragraph 1above and as required by Banking Companies (Acquisition andTransfer of Undertakings) Act, 1970 and subject to the limitations of disclosure required therein


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We report that:(a) The Balance Sheet and the Profit and Loss Account have beendrawn up in Forms A and B respectively of the Third Schedule to theBanking R egulation Act, 1949.(b) In our opinion and to the best of our information and accordingto the explanations given to us and as shown by the books of thebank maintained in accordance with the generally acceptedaccounting principles in India:(i) The Balance Sheet read with the notes thereon and significant

accounting policies is a full and fair Balance Sheet containing thenecessary particulars, and is properly drawn up so as to exhibit a trueand fair view of the affairs of the Bank as at 31st March, year.(ii) The Profit and Loss Account read with the notes thereon andsignificant accounting policies shows a true balance of the Profit forthe year ended 31st March, year.(iii) The Cash Flow Statement gives a true and fair view of the cashflows for the year ended 31st March, 2010.(c) We have obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposesof our audit and have found them to be satisfactory.(d) The transactions of the Bank which have come to our notice havebeen within the powers of the Bank.

(e) The returns received from the offices and branches of the Bankhave generally been found adequate for the purposes of our audit.ForCHA R TER ED ACCOUNTANTSFirm R egn.


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ACKNOWLEDGEMENT

Thanks to PROF. SH A RDDH A , under her dynamic guidance we were able to express our self. She is beyond our thoughtsand much more than this acknowledgement. And finally we are thankful that she cooperated with us andappreciated as well. All the research we have done is due tothe skill we acquired from you. We have tried our best toprovide you the actual facts and figures.

We hope you will appreciate our efforts. Your appreciation is our reward

bank audit final

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