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Concurrent Audit under a
CBS environment
CA BHARATH RAO
Concurrent Audit
Continuous Audit
12 Months
Business ProfileBusiness Processes
Underlying levels of
Automation
Internal Controls present in CBS and how
they work
Be a Friendly Critic !!!
Why IT Controls are required to be considered?
Banking without IT = Non Existent
Today
No IT Controls = High Fraud and Error
Risk
Bank Audit without Consideration to IT
Controls = High Audit Risk
Efficient Bank Audit = Routine Audit +
Consideration to IT Controls
Getting comfortable with the CBS is
extremely important
Know the CBS and then
perform the Audit
CORE Banking Solution
CORE = Centralised Online Realtime Electronic Banking
Integration of all branches
Data of any branch can be accessed if access rights are
assigned
Risk Assessment and Audit Planning
SA 315 – Identifying and Assessing the risk of
Material Mis-statements through
understanding the Entity and it’s
environment
Obtain impact on
Auditor’s procedures for obtaining sufficient
understanding of the accounting and internal
control systems
Evaluation of inherent risks and control risk to
assess audit risk
Design and perform tests appropriate to meet audit
objective
Basically, the point is, SA 315 SA 330
What can the CBS do?
Transactions get completed in real time
Multiple delivery Channels – Net Banking,
ATM, Mobile Banking, SMS and Telephone
Banking, Social Media Banking
Automated computations – Interest, Fees,
Charges, Margins, NPA, Provisioning
Automation of significant work flows,
transaction limits and chart of accounts
Centralised software implementing and
governing, Branch operational controls
Control through access management, alerts,
approvals, escalations, views, reports and
Audit Trail
What must YOU know?
Features of CBS that you need to know that will help
you with your Audit
Key commands or menu options of
Reports
Audit module
Audit trail
Standing data and parameters
How parameter configuration is controlled
Reports that are available in CBS and how can you
extract it to TXT or CSV or XLS format
Filtering report columns relevant to your audit logic
Use of Excel, Macros and Scripts
How can you understand?
User guides available online for various CBS
Interacting with employees
Obtaining a list of custom reports that are developed
for the bank
Obtaining the in-house developed macros or scripts if
any that is being used by the bank branches
Observing the work of the employees
Google or Bing
Some other basic checks
Computer Security at workstations and ATMs
Operating System
Updates
Using Excel as a Tool to analyse
complex reports
Demo
