![]() ![]() ![]() Has the auditor checked whether the NPA norms have been applied to all direct agricultural advances listed in the Master Circular on lending to the priority sector Whether the auditor ensured that the drawing power is calculated in accordance with the extant guidelines as per the credit policy of the bank formulated by the Board of Directors and agreed upon by the concerned statutory auditors, as reflected in Has the auditor verified whether the bank has a system in place for the ongoing identification and classification of advances through CBS without manual intervention and whether this system accurately crystallizes the date of NPA. Whether the auditor reviewed and compared the date of NPA for loan accounts mentioned in the current year’s statements with those of the previous year and ascertain the reasons for any changes observed. In this regard, the checklist has been prepared to aid in the audit of bank advances. An auditĬhecklist can help ensure that the audit covers all necessary areas. His audit report includes an examination of advances and identifies any discrepancies in the classification of assets and recognition of income. SBAs should also understand the different functionalĪreas, processes, procedures, systems, and internal controls related to advances in banks and branches. To effectively carry out this task, auditors must possess sufficient knowledge about the banking industry and its regulations. Therefore, the audit of advances is a critical aspect ofīank audits and falls under the responsibility of Statutory Branch Auditors (SBA). Asset protection planning neutralizes this.Advances are banks’ primary income source and are usually the largest item on their balance sheets. Once this is done, your company won’t be so attractive to litigious plaintiff attorneys who only get paid if they recover assets from the judgments they obtain. One of the best ways to level the litigation playing field is to place the assets out of reach of future potential plaintiffs or convert non-exempt assets to exempt assets ahead of any future claim. There’s also the option of having the company owned by a foreign asset protection trust so the distributions are not subject to personal liability.
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