Concurrent audit is an audit which is carried out regularly (we can say on daily/ weekly basis) for the transactions happened on that day/ week. Generally, the term is used in bank audits as it is mandatory for the bank branches meeting a specific criteria (as per the RBI Regulations), to get its operations audited on concurrent basis. However, many organsiations, other than banks, also get its operations audited concurrently for their internal control purpose.
Objective of Concurrent Audit
- To ensure compliance of laid down systems and procedures scrupulously.
- To ascertain whether sanction for advances and expenditures is taken from competent authority.
- To examine books of accounts, records and registers to ensure that they are maintained in accordance with the prescribed systems.
- To ensure adequate measures are being taken in advance to prevent future frauds, etc., to avoid difficulties, which may arise.
- To check cash, securities, etc. to ensure that they are in due order and in agreement with books.
- To detect and arrest any leakage of income, if any. Evaluating the quality of customer services provided and giving useful suggestions.
- To assess overall performance of the branch while assessing productivity and profitability and to offer useful comments on the basis of audit conducted. Restriction of matter discussed on the spot with the help of concerned official.
- To report any inefficiency in any operational level.
- To report any irregularity in working which may result in financial or other loss to branch. 10. To reporting to appropriate levels of management for appropriate actions for remedial measures.
- To scrutinize the completeness of documents submitted for availing advances and other facilities and physical checking of stocks and other assets at relevant places.
- To follow up with authorities to ensure timely rectification of irregularities reported which were not rectified on the spot. Verify prompt timely and regular submission of the periodical and statutory returns.