{"id":246,"date":"2024-04-04T12:02:12","date_gmt":"2024-04-04T12:02:12","guid":{"rendered":"https:\/\/www.thekgac.com\/blog\/?p=246"},"modified":"2024-04-04T12:02:12","modified_gmt":"2024-04-04T12:02:12","slug":"a-concurrent-audit-refers-to-the-simultaneous-inspection-of-financial-transactions","status":"publish","type":"post","link":"https:\/\/www.thekgac.com\/blog\/a-concurrent-audit-refers-to-the-simultaneous-inspection-of-financial-transactions\/","title":{"rendered":"A concurrent audit refers to the simultaneous inspection of financial transactions……"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

A financial institution necessitates ongoing transaction monitoring, particularly in the case of entities such as banks, where a robust and uninterrupted review process is essential. This underscores the importance of conducting a \ud835\uddf0\ud835\uddfc\ud835\uddfb\ud835\uddf0\ud835\ude02\ud835\uddff\ud835\uddff\ud835\uddf2\ud835\uddfb\ud835\ude01 \ud835\uddee\ud835\ude02\ud835\uddf1\ud835\uddf6\ud835\ude01.<\/p>\n\n\n\n

True to its name, a concurrent audit occurs concurrently with transactions happening in parallel. In contrast to most audits performed after transactions, concurrent audits are conducted in real-time as transactions unfold. This proactive approach serves as an early warning system, facilitating the timely identification of irregularities and shortcomings.<\/p>\n\n\n\n

The concurrent audit encompasses every transaction within the bank, making it essential to have a grasp of the bank’s operational procedures to conduct this audit effectively. Banking operations encompass a wide range of functions, including but not limited to:<\/p>\n\n\n\n

\u2705 Acceptance of deposits
\u2705Loans and advances
\u2705Cash management
\u2705Safety Lockers
\u2705 Forex
\u2705Bill Payment<\/p>\n\n\n\n

\ud835\uddd4\ud835\uddf0\ud835\uddf0\ud835\uddf2\ud835\uddfd\ud835\ude01\ud835\uddee\ud835\uddfb\ud835\uddf0\ud835\uddf2 \ud835\uddfc\ud835\uddf3 \ud835\uddf1\ud835\uddf2\ud835\uddfd\ud835\uddfc\ud835\ude00\ud835\uddf6\ud835\ude01\ud835\ude00:
The deposits vary depending on the holder and the purpose of the account. Nevertheless, the process of Acceptance of deposits can be summed up as follows:-<\/p>\n\n\n\n

\u25baCollection of details
\u25baKYC and AML norms compliance
\u25baCreation of an account in the Core Banking System (CBS)<\/p>\n\n\n\n

\ud835\udddf\ud835\uddfc\ud835\uddee\ud835\uddfb\ud835\ude00 \ud835\uddee\ud835\uddfb\ud835\uddf1 \ud835\uddee\ud835\uddf1\ud835\ude03\ud835\uddee\ud835\uddfb\ud835\uddf0\ud835\uddf2\ud835\ude00:
There are several loans and advances that a bank offers. However, the process for disbursement remains more or less the same. The process for disbursement of a loan can be summed up as the following transactions:<\/p>\n\n\n\n

\u25baBuilding a relationship with the customer
\u25baCollection of all requisite documents
\u25baChecking the credibility of the customer
\u25baDisbursing the loan and monitoring the loan<\/p>\n\n\n\n

\ud835\uddd6\ud835\uddee\ud835\ude00\ud835\uddf5 \ud835\uddfa\ud835\uddee\ud835\uddfb\ud835\uddee\ud835\uddf4\ud835\uddf2\ud835\uddfa\ud835\uddf2\ud835\uddfb\ud835\ude01:<\/p>\n\n\n\n

Maintaining a substantial cash reserve could lead to interest losses as the bank generates interest from the rupees it lends. Nevertheless, banks must maintain an adequate cash reserve to support their ATMs. Therefore, the bank must strike a balance.<\/p>\n\n\n\n

\ud835\udc05\ud835\udc28\ud835\udc2b\ud835\udc1e\ud835\udc31:<\/p>\n\n\n\n

For forex operations of a bank, the auditor must ensure the following checks:
\u25baRate of foreign exchange on the transaction date and correct entry in books
\u25baAdherence to RBI norms relating to Forex
\u25baCorrect valuation of Forex held in hand at the time of the audit.<\/p>\n\n\n\n

\ud835\udc01\ud835\udc22\ud835\udc25\ud835\udc25 \ud835\udc29\ud835\udc1a\ud835\udc32\ud835\udc26\ud835\udc1e\ud835\udc27\ud835\udc2d\ud835\udc2c:<\/p>\n\n\n\n

This service, provided by banks as an additional offering, allows customers to make payments for public utilities through the bank. The auditor’s responsibilities include:<\/p>\n\n\n\n

\u25ba Verifying whether standing instructions from customers have been received and ensuring that they are recorded in the CBS system to facilitate automatic payments.
\u25baEnsuring that the utility accounts are properly reconciled.<\/p>\n\n\n\n

The primary goal of concurrent auditing is to minimize the time gap between a transaction taking place and its review. A concurrent audit report encompasses all transactions, making it the bank’s secondary line of defense.<\/p>\n\n\n\n

#concurrect<\/a> #audit<\/a> #bankaudit<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A financial institution necessitates ongoing transaction monitoring, particularly in the case of entities such as banks, where a robust and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-246","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/comments?post=246"}],"version-history":[{"count":1,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/246\/revisions"}],"predecessor-version":[{"id":248,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/posts\/246\/revisions\/248"}],"wp:attachment":[{"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/media?parent=246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/categories?post=246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thekgac.com\/blog\/wp-json\/wp\/v2\/tags?post=246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}