Concurrent Bank Audits are exercises that are performed by CA Article in India. It is imperative that the technology aspects are to be known prior to the commencement of any audit. Technology provides the very backing of any business. The Banking Industry, which is one of the biggest business industries in the world is currently very successful due to the CBS Application. My presentation is about understanding the CBS application, how can the Auditor use the CBS application to his advantage during his audit and most importantly having confidence of a thorough complete audit of the bank. Do watch my presentation on youtube at https://www.youtube.com/watch?v=Jd-gVFf7Jrs Please leave your valuable comments and feedback below.

1. Concurrent
Audit under a
CBS
environment
CA BHARATH RAO

2. Concurrent
Audit
Continuous
Audit
12 Months
Business Profile
Business
Processes
Underlying
levels of
Automation
Internal
Controls present
in CBS and how
they work
Be a Friendly Critic !!!

3. 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

4. Know the CBS
and then
perform the
Audit

5. COREBanking
Solution
 CORE = Centralised Online Realtime Electronic Banking
 Integration of all branches
 Data of any branch can be accessed if access rights are
assigned

6. 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

8. What canthe
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

9. 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

15. Howcanyou 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

16. Some other basic
checks
Computer Security at workstations and ATMs

17. Operating
System

18. Updates

22. Using Excel as a
Tool to analyse
complex reports
 Demo

23. Thank You 
 Bharath Rao
 +91 88922 29220 | mailme@bharathraob.com
 Bharathraob.com
 /bharathraob