For branches dealing in Clearing House Operations, normally referred to as Service Branches
1. Does the branch have a system of periodic review of the outstanding entries in clearing adjustments accounts? In your view has the system generally been complied with?
The auditor should verify whether the branch is having system of periodic review of the outstanding entries in clearing adjustments accounts. On a test check, auditor should verify whether the system, generally, has been complied with.
2. Whether review of the clearing adjustments accounts (inwards/ outwards) reveals any old/ large/ unusual outstanding entries, which remain unexplained? Give year-wise break-up of outstanding in number and value:
If the review of clearing adjustments accounts (inwards/outwards) reveals any old/large/unusual outstanding entries, which remain unexplained, the auditor should report the same. Year-wise break up should be given of outstanding clearing in number and value in the following format.
Inward Clearing
Number |
Value |
|
Normal Clearings |
||
High Value Clearings |
||
Inter-Branch Clearings |
||
National Clearings |
||
Returned/ Dishonored Clearings |
Outward Clearing
Number |
Value |
|
Normal Clearings |
||
High Value Clearings |
||
Inter-Branch Clearings |
||
National Clearings |
||
Returned/ Dishonored Clearings |
3. Has the Branch strictly followed the guidelines of the Controlling Authority of the bank with respect to operations related to clearing transactions? Comment on the systems and procedures followed by the Branch in this regard.
Auditor should verify whether the guidelines of the Controlling Authority of the bank with respect to operations related to clearing transactions has been strictly followed. In case the same has not been followed, the auditor should report the same. The auditor should report on the system and procedures followed by the branch in this regard.