Bankers' Handbook on Auditing book by Indian Institute of Banking & Finance

The Bankers' Handbook on Auditing was developed to address the most important aspects of bank auditing. It underscores the interlinkage and importance of an organisation's robust accounting and auditing systems.

The focus area of this handbook revolves around the following:

Introduction & Types of Audit
Internal Audit
Audit in a Computerised Environment
Audit Aspects of Financial Statements of Banks
This book aligns with regulatory compliance and operational efficiency, especially in bank accounting and audit functions. The current edition has also been updated based on banking experts and internal faculty feedback, focusing on practicality and current digital trends.

The Present Publication is the 2024 Edition, updated by Mr Sampath Kumar K S, CA (Former Deputy General Manager – Indian Overseas Bank) and vetted by Mr Anil B Rane, B.Com. & LLB (Former General Manager – Bank of India). Taxmann exclusively publishes this book for the Indian Institute of Banking and Finance with the following coverage:

Introduction & Types of Audit – This section provides an overview of the evolution, definition, and importance of auditing, exploring various audit types along with their scope, objectives, and limitations. It distinguishes between auditing, accounting, and investigation, laying a foundational understanding for readers
Bank Audit & Types – Focusing on the banking sector, this part delves into the significance of risk-based internal audits and provides a detailed examination of different types of bank audits, including concurrent, internal, and statutory audits
Risk-Based Supervision (RBS) – The book examines the objectives, focus, and reasons for adopting Risk-Based Supervision in banking. It discusses supervisory tools, the SPARC framework, and provides insights into the Risk Discovery Process and the IRISc Model
Internal Audit's Role in Governance – This section traces the evolution and the multifaceted roles of internal audit, emphasising its crucial role in corporate governance
Risk-Based Internal Audit in Banks – Here, the book explains the concept of risk-based auditing and its practical implementation in banks, including guidelines, standards, and ethics set by the RBI and MOF
Risk-Based Internal Audit Procedures – Offering an in-depth look at internal audit processes, this part focuses on audit prioritisation, reporting, and strategies for tackling auditing challenges
Risk Management – It defines and discusses the relationship between internal auditing and risk management, covering the architecture of risk management and the auditor's role in this context
Data Analytics and Continuous Controls Monitoring – The section highlights the use of data analytics in business and audit decisions and outlines the techniques and benefits of continuous controls monitoring and auditing
Audit in Computerised Information System (CIS) Environment – This part provides an understanding of the CIS environment and its impact on auditing, including an examination of auditing standards and approaches relevant to CIS
Audit in a Computerised Environment – An analysis of how computer systems affect internal control, along with a review of RBI guidelines for IS audit and risk management in such environments
Audit Aspects of Advances – The book examines advances reflected in balance sheets, including audit procedures and coverage of agricultural advances, NPA norms, and loan document reviews
Audit Aspects of Financial Statements | Assets Side – An overview of disclosure requirements and balance sheet analysis, focusing on assets like fixed assets and other assets, along with their audit procedures
Audit Aspects of Capital, Reserves, Borrowings, & Deposits – This part presents a detailed analysis of capital, reserves, and surplus in financial statements, including audit approaches and procedures for borrowings and deposits
Audit Aspects of Other Liabilities & Provisions – Examination of other liabilities, provisions, and contingent liabilities, along with a review of bills for collection and associated audit approaches
Audit Aspect of Treasury Operations – Insights into treasury operations, including forex and derivative transactions, and an understanding of investments, CRR, SLR requirements, and audit procedures
Audit Aspects of Profit and Loss Account – This section covers the preparation and disclosure in the profit and loss account, detailing audit procedures for income and expenditure
Disclosure Requirements in Financial Statements – Highlights the importance and classification of disclosures in financial statements and the requirements of statutes and listing agreements
Audit Aspects of Consolidation of Branch Accounts – Discusses the process and approach to the consolidation of financial statements at various levels, including overseas branches
Audit Aspects of Consolidation of Financial Statements – Guidelines on consolidated accounting and supervision, and components and audit procedures for consolidated financial statements
Audit Aspect of Inter-Office Transactions – An overview of major transactions and errors in inter-branch transactions, along with audit approaches and procedures for these transactions
Long Form Audit Report of Bank Branches – Definition, purpose, and steps in dealing with LFAR, including guidelines and important aspects for branch statutory auditors
Long Form Audit Report of Head Office – Coverage and audit aspects of LFAR at the head office level, including the implementation of committee and RBI recommendations
Basel III Regulations and Disclosures – An overview of Basel III norms and the disclosure framework, along with the role of auditors in ensuring compliance with these regulations
Database Security Audit – Exploration of database security and audit principles, focusing on audit techniques, security authentication, and audit trails
Remote Auditing – Understanding remote auditing, its advantages, limitations, and ISO guidelines, along with RBI/ICAI guidelines on remote auditing
The detailed contents of this book are as follows:

Module A – Introduction and Types of Audit
Introduction to Auditing and Types of Audit
Bank Audit and Various Types of Audit in Banks
Risk-Based Supervision – A New Approach
Module B – Internal Audit
Internal Audit – Role in Overall Governance
Risk-based Internal Audit in Banks
Risk-Based Internal Audit Procedures
Risk Management
Data Analytics and Continuous Controls Monitoring
Module C – Audit in Computerised Environment
Audit in Computerised Information System (CIS) Environment – An Introduction
Audit in a Computerised Environment
Module D – Audit Aspects of Financial Statements of Banks
Audit Aspects of Advances
Audit Aspects of Bank's Financial Statements – Assets Side (Other than Advances)
Audit Aspects of Capital, Reserves & Surplus and Borrowings & Deposits
Audit Aspects of Other Liabilities & Provisions and Contingent Liabilities
Audit Aspect of Treasury Operations – Forex & Derivative Transactions
Audit Aspects of Profit and Loss Account
Disclosure Requirements in Financial Statements
Audit Aspects of Consolidation of Branch Accounts
Audit Aspects of Consolidation of Financial Statements
Audit Aspect of Inter-Office Transactions
Long Form Audit Report of Bank Branches
Long Form Audit Report of Head Office/Central Office
Basel III Regulations and Disclosures
Database Security Audit
Remote Auditing