Approaches of Bank Audit (Part-I) | Dr. Niranjan Shah | Rigorous Internal Control System

Summary

In this educational video, Dr. Niranjan Shaha Tujjaram from Chhatuchan College, Bharamati, discusses the specialized nature of bank audit. He highlights the unique features in bank accounting and the various audit approaches needed to address the distinct regulations and rules under the Banking Regulation Act and the Banking Companies Act.

Takeaways

• 🎓 The speaker, Dr. Niranjan Shaha, is an educator discussing the topic of bank audit.
• 🏦 The previous video covered the introduction to bank audit and the factors that affect it.
• 📚 The current discussion is focused on the various approaches to conducting a bank audit.
• 📋 The script mentions that auditors must follow provisions and regulations from the Banking Regulation Act and the Banking Companies Act.
• 🔍 Bank audit is a specialized field that requires attention to unique accounting features of banks.
• 💼 The audit approaches are influenced by the distinctive characteristics of banking operations, such as the handling of monetary items.
• 💵 Special attention is given to the audit of cash and negotiable instruments due to their significance in banking.
• 🔄 The script implies that the audit process involves both storage and transfer considerations for these monetary items.
• 🛡️ There is an emphasis on the importance of internal controls within the bank to ensure proper audit procedures.
• 🤔 The mention of 'individual discretion' suggests that auditors may need to exercise judgment in their work.
• 🙏 The transcript concludes with a thank you, indicating the end of the educational segment.

Q & A

Who is the speaker in the video?

The speaker in the video is Dr. Niranjan Shaha Tujjaram.

What is the main topic of the video?

The main topic of the video is the approaches of bank audit.

What was discussed in the previous video by Dr. Niranjan Shaha Tujjaram?

In the previous video, Dr. Niranjan Shaha Tujjaram discussed the introduction of bank audit and the features affecting bank audit.

What are the special features that make bank audit a specialized audit?

Bank audit is specialized due to the unique accounting features of banks, which include the handling of monetary items such as cash and negotiable instruments.

What are the regulations that auditors need to follow while auditing a bank?

Auditors need to follow provisions and regulations from the Banking Regulation Act and the Banking Companies Act while auditing a bank.

What are the implications of the various provisions and regulations for auditors?

The provisions and regulations guide auditors on the standards and practices they must adhere to, ensuring the integrity and legality of the audit process.

What does the term 'audit approaches' refer to in the context of bank audit?

Audit approaches refer to the various methods and strategies used by auditors to examine and verify the financial activities and records of a bank.

Why is it important for auditors to understand the special features of bank accounting?

Understanding the special features of bank accounting is important for auditors to effectively assess the financial health and compliance of a bank, given the unique nature of banking operations.

What is the significance of the banking regulation act in the context of bank audit?

The Banking Regulation Act provides the legal framework within which banks operate, and it is crucial for auditors to ensure that banks are compliant with its provisions during the audit process.

How does the script suggest auditors should approach the audit of monetary items and negotiable instruments?

The script suggests that auditors should apply specific audit approaches to monetary items and negotiable instruments, considering their storage and transfer, which may involve individual discretion and internal controls.

What is the role of internal controls in the audit of a bank?

Internal controls play a critical role in ensuring the accuracy and reliability of financial records, and auditors must assess these controls as part of the bank audit process.