Banks are the cornerstone of our economy. They handle huge amounts of public deposits and savings, so they have to be closely monitored and reviewed. A bank audit is one important process of this monitoring.
An auditor carrying out this bank audit have to verify the financial statements of such a banking institution. They have to ensure that the final accounts truly represent the financial position and condition of the bank.
Other than this, there are other special transactions that a bank audit must cover. These include the provisions for NPA’s (non-performing assets), maintaining credit ratios, fulfilling RBI’s statutory requirements etc.
Just like a bank audit, an insurance audit is also important since insurance companies are providing a public service. Again the auditor will check for financial accuracy of their accounting records.
They will also ensure that customers have paid an appropriate premium for their insurance coverage. He will ensure the company follows all rules laid out in the Insurance Regulatory and Development Act of 1999.