Audit - 18. page

Valuation of FX contracts and Derivatives The audit procedures for valuation of FX contracts and Derivatives include:  For spot and tom contracts checking whether correct FEDAI rates are used […]

Compliance with CRR and SLR requirements Due to the very nature of their operations, banks need to maintain sufficient liquid assets in the normal course of their business. The failure […]

Computation of CRR The RBI introduced the system of lag of one fortnight in maintenance of stipulated CRR by banks w.e.f. November 06, 1999 to improve cash management by banks. […]

Assessment of controls The audit procedure may include verifying and assessing controls including:  Existence of comprehensive treasury policy and operating procedures manual (SOP).  Review of the policies and […]

NOSTRO and VOSTRO Accounts A fundamental feature of foreign exchange transactions is that the useful possession of any currency can be had only in the country in which it is […]

NOSTRO / VOSTRO Reconciliation In respect of old unreconciled entries in NOSTRO Accounts, the RBI vide its Circular DBOD No.BP.BC.67/21.04.048/99 dated July 1, 1999 has allowed, as a one time […]

Evaluation of Internal Audit/Concurrent Audit The audit considerations for this aspect include:  Examining whether treasury transactions are separately subjected to concurrent audit by internal auditors / external auditors and […]

Risk Management The audit considerations for this aspect include:  Checking whether the bank has adequate risk management process, sound risk measurement procedures, sound information systems, continuous risk monitoring and […]

Realised profit / loss on derivative transactions : The audit procedures include:  Recalculating the profit or loss for sample trades selected and agree to the general ledger.  Test […]

Rate Scan : The audit procedures for this would include:  Checking whether for the selected deals, the rates taken are the prevailing rates in the market at the time […]