1. Bank Audit through CBS CA. Kiran Kunte
B. Com, FCA, DISA, Cert. IFRS, LL.B

2. Theme:
Audit objectives do not change …
Methodology does …

3. Sec. 143 (9) of Companies Act 2013: AUDITING STANDARDS
Background:
Sec. 143 (9) of Companies Act 2013:
AUDITING STANDARDS
Sec. 143(12) of Companies Act : FRAUD
SA 315 OF ICAI: Risk Assessment
SA 240 OF ICAI: CIS Environment
Amendment to Sec. 194 A of
Income Tax Act - Union Budget 2015

4. CORE BANKING SOLUTION
CORE means …
Technical Definition
BOD / EOD
SOL, Data Centre, DR Site

5. Practical Difficulties:
Auditing with Computer 
Not possible, CAAT
Auditing AROUND the Computer

6. CBS ENVIRONMENT
01-SINGLE CENTRAL DATA BASE: FINACLE
02-BRANCH SERVER
+ CENTRAL DATA BASE: TCS
03-BRANCHES GROUPED IN CLUSTERS
& CLUSTERS ARE ATTACHED TO SERVER

7. Payments / Settlements:
RTGS
NEFT
SWIFT
NPCI
SFMS

8. Myths about CBS:
Requires software knowledge in detail
No data can be made available in the branch, except disclosed by the branch ‘suo moto’.

9. LFAR: Level of computerisation
Whether advances against Lien of deposits have been properly granted and Lien has been ‘marked’?
Are there any ‘overdue’ deposits?
Whether the branch has a system to compute discrepancies in interest and timely adjustment thereof?
Suspense account / Sundry assets

10. CBS Products: FINACLE and BANC

11. CBS Products: FINACLE and BANC
Some banks using FINACLE

12. CBS Products: FINACLE and BANC
Some banks using FINACLE

13. CBS Products: FINACLE and BANC
Some banks using BANC

14. CBS Products: FINACLE and BANC
Some banks using BANC

15. Parameters as a tool of input control:
e.g. Cash Credit (garbage in - garbage out)

16. Parameters as a tool of input control:
e.g. Cash Credit (garbage in - garbage out)
 Sanctioned limit
 Margin %
 DP Mode
 Stock statement frequency
 Trigger for slippage
 Interest Rate
Continued …

17. Parameters as a tool of input control:
e.g. Cash Credit (garbage in - garbage out)
 Linkage of interest rate to credit rating
 Linkage to BPLR
 Credit rating
 Incremental rate
 Penalty parameters
 Security code
Continued …

18. Parameters as a tool of input control:
e.g. Cash Credit (garbage in - garbage out)
 Sector code
 Scheme code
 CGTSME Flag

19. Parameters as a tool of input
control: e.g. Housing Loan

20. Parameters as a tool of input
control: e.g. Housing Loan
 Male / Female
 Basis of Rate
 Moratorium Period

21. Parameters as a tool of input
control: e.g. Fixed Deposit

22. Parameters as a tool of input
control: e.g. Fixed Deposit
 Auto Renewal Flag
 TDS Flag

23. Some useful features of Finacle are …

24. Menus UTILITY ACLI ACM ACLHM INTTM
Account ledger Inquiry
ACM
MASTER Parameters
ACLHM
Account Limit History maintenance
INTTM
Interest Table master maintenance

25. Account turnover Inquiry ATOR Account turnover report AINTRPT
Menus
UTILITY
ACTI
Account turnover Inquiry
ATOR
Account turnover report
AINTRPT
Interest report for the account
SRM
Security Register maintenance

26. Account Lien maintenance GI Guarantee enquiry BI Discounted bills
Menus
UTILITY
ALM
Account Lien maintenance GI
Guarantee enquiry BI
Discounted bills
Purchased bills
ISRA
Inventory status report activity

27. Inquiry on transactions. Sundry assets/Suspense/
Menus
UTILITY
IOT
Inquiry on transactions. Sundry assets/Suspense/
TDSIP
TDS Enquiry report
INTFLRRPT
Interest failure report

28. Exceptional Transactions Report
Menus
UTILITY
EXCRPT
Exceptional Transactions Report
CTRL + E
You can view the second effect of transaction
CTR + D
Page down

29. Account Temporary Overdraft maintenance
Menus
UTILITY F3
Back to original
CUMM
Customer master
ACINT
Interest calculation
ACTODM
Account Temporary Overdraft maintenance

30. Limit tree look up. Report on limit utilisation
Menus
UTILITY
LTL
Limit tree look up. Report on limit utilisation
BRCR
Balancing report on bills sent for collection
DCQRY
Report on LC and other documentary credits
DCREG
Documentary credit register

31. Menus
UTILITY
AFI
Audit file inquiry.To see changes in data base for non financial transactions like change of status of a/c from Dormant to active

32. BANC by TCS  BGL and CGL  VPIS: Valuable Paper Instrument System
 BGL > Inquire > Account > Account No.
> Transaction Enquiry > Search by Client
> Search by CIF > Search by Name
 Exim Module
Exceptional Transactions Report

33. Cases
 Migrated Accounts
 Current Accounts opened as
accounts with OD
 Same Borrower - Multiple Id
 Same Depositor - Multiple Id
 BPLR

34. Interaction
Please feel free to share your views.

35. My sincerest thanks to you
for sparing your time …