Online Audit Software For Banks

On-line Audit Software for Banks

Introduction

ComLine Products has developed this software which covers the complete functionality of Audit department of a bank. It has been developed to help not only the personnel of Audit department, but also keeping in mind the convenience of external auditors, branch managers and requirements of the top management. The software automates various Audit operations and has built-in Work Flow functionality. We believe implementing this software will result in better internal control systems, which are crucial to the conduct of banking business not only to lead the bank more profitably but also in compliance of prudential guidelines.  The software is being currently used by one of the largest co-operative banks in the country.

Features

·         Comprehensive:

It covers all aspects of Audit. It supports different Types of Audits for different Types of Branches. It also covers other functions of Audit Department like Empanelment of External Auditors and Scheduling of Internal Auditors.

·         Parameterized:

Most of the features can be easily customized and hence allows Audit Department to enforce Audit Policy.

·         Integrated with data from Core Banking Solution:

It extracts data from Core Banking Solution and presents it to the Auditor.

·         Secure:

It provides separate login for all users. It allows Audit Department to control the Access Levels permissible for the users.

·         On-line and Automated

It is fully automated software which captures queries and remarks by auditors online. Work-flow to provide these queries to the respective Branch Managers for compliances and later to Audit department to accept/reject these compliances is also built in. This saves a lot of valuable man power and time for the bank.

·         Optimal Consumption of Band Width

It provides upload and download of data from central computer during off-peak hours. This way, it uses very minimal band-width during the normal office hours.

·         Reports

It generates various types of reports. For example: Audit Reports, MIS Reports, Reports for Audit Committee, etc. Also, since the data pertaining to queries raised by the Auditors and their current status is stored in the database, it can be used for powerful reporting to extract very vital information for top management.

Types of Audits supported by the software

·         Audits by External Auditors: Concurrent Audits, Internal Audits, etc.

·         Audits by Internal Auditors: Regular Audits, Surprise Inspections, etc.

·         Audits by Branch Managers: Self Audits

·         Audits by Audit Department: Revenue Leakage Audits, Transaction Audits, etc.

Classification of Branches

·         Based on Regions or Zones

·         Based on Volume of Business: Type A (High Volume), Type B (Low Volume)

·         Based on Nature of Business: SME, Retail Advances, Central Deposits, etc.

·         Based on Categories: Rural, Urban, etc.

·         Based on Age: New, Old, etc.

Parameterization

·         List of Observations To Be Made

It has detailed and exhaustive lists of observations to be made for all the modules. These lists can be configured by the Audit Department.

·         Data Extraction Criteria

Audit Department can control the data extraction criteria.

Audit Forms

The software covers all the functional areas of Audit for the bank, which includes following modules:

 

·         Revenue Leakage

·         Cash and Bank Accounts

·         Stock of Valuable Stationery and Postage Stamps

·         Miscellaneous accounts: Other Assets, Other Liabilities, etc.

·         Service to the customers

·         P & L Accounts

·         House keeping: Maintenance of Registers, Submission of Returns, Balancing of A/Cs, etc.

·         Deposit Accounts: Opening of Accounts (Including KYC norms)

·         Operations in Accounts: High Value or Abnormal Transactions, Debit Balances, Stop Payments, etc.

·         Other services: IBC, OBC, Safe deposit lockers, ATM, etc.

·         Death Claims

·         Staff related matters

·         Establishment

·         Environment and Security

·         Advances: New Advances (OD, CC, Loans), Overdue Advances, etc.

·         Other Advances: Bills Purchased, Bills Discounted, LCs, BGs, etc.

·         Forex: LCs, Bills, Remittances, etc.

Data Extraction

·         Data To Be Audited

It extracts the data from the Core Banking Solution which is relevant to an Audit. This eliminates any chance of missing out on data to be audited. For example: Accounts Opened, Advances Disbursed, etc., during Audit Period.

·         Supporting Data

It also extracts supporting data which Auditor may need while conducting the Audit. It is available to Auditor as on-line help. This eliminates the need to refer to Core Banking Solution every now and then and to take print outs, hence saving a lot of time. For example: Limits Sanctioned, Security Details, etc., for Advances Disbursed.

Audit Life Cycle

·         Scheduling an Audit

·         Creating an Audit

·         Extracting Data for Audit

·         Conducting the Audit by raising Auditor’s Queries

It allows auditors to give Risk ratings while doing audits. This helps audit department tracking the queries priority wise.

·         Audit Rating

It allows internal auditors to evaluate performance of the branch for the audit period by assigning marks to various observations made.

·         Marking the Audit as Complete

At this point the system checks if Auditors has missed out Auditing any particular data.

·         Audit Completion Certificate

To be issued by the Auditor and to be authorized by the Branch Manager.

·         Follow up of Queries Raised

All the activities of the follow up, say, Compliances given by Branch, Compliances Accepted by Audit Department or Further Query Raised by Audit Department, are carried out on-line.

·         Reminders

Audit Department can send reminders to Branch Managers for pending compliances.

·         Closure Certificates

Once all queries raised for the Audit are complied, Audit Department can issue Closure Certificate to the Branch.

Other Functions of Audit Department

·         Empanelment of External Auditors

It allows Audit Department to maintain a list of Empanelled External Auditors. The list is maintained for a specified period, typically accounting year. It covers Firms, their Auditors, Branches Assigned to the Firms, and Fees Sanctioned.

·         Scheduling of Internal Auditors

It allows Audit Department to schedule audits to be conducted by Internal Auditors at various branches. It is carried out by assigning people and tentative dates to Branches. This information is validated by the software at the time of creating audits.

While scheduling the audits, it considers long pending audits, number of teams available, number of days typically required for the Audit, and the branches from the same zone,

·         Marking Auditor’s Queries for Audit Committee

Audit Department can mark critical queries raised by the Auditor to be presented to the Audit Committee of the Bank.

Security

·         Separate Logins for all Users

When any user logs in, it checks if he/she is a valid user. Then, based on the user group to which the user belongs, it enables or disables features of the system.

·         Password Encryption and Password Expiry Policy

 

·         Menu Level Access Rights for User Groups

For example: Only Auditors will be allowed to enter data on Audit Forms.

·         User Level Access Rights for Accepting and Authorizing Compliances

User Level Access Rights for Accepting and Authorizing Compliances are linked with Risks Assigned to Audit Queries. For example: User Level Access Rights assigned to a User will denote if he/she can authorize High Risk points.

·         Assignment of Users to Branches

Any User will be allowed to access data pertaining to Branch assigned to him/her.

Reports

·         Audit Reports

·         Detailed Audit Report

·         Executive Summary

·         Audit Completion Certificate

 

·         MIS Reports

·         Audit Status

Audit department can track various audits that are going on and their current stage.

·         Pending Queries Status

Zone/Branch wise list of pending Queries along with Query Status (Pending at Branch for Compliance or Pending at Audit Department for Acceptance)

·         Age wise Pending Queries

Queries which have been pending without any communication between Branch and Audit Department for more than given number of days.

·         Queries related with KYC Norms

·         Queries related with Overdue Advances

 

·         Reports for Audit Committee

·         New Queries sent to Audit Committee

·         Queries discussed in previous meeting, and which are complied after it.

·         Queries discussed in previous meeting, and which are still pending.