Concurrent audit of bank branches: a working checklist
The month-end review points that carry the highest weight in regulatory inspection.
The month-end review points that carry the highest weight in regulatory inspection. This note is one of a series of factual compliance notes published by Lalit Mohan Tyagi & Co.; it is general information, not advice for a specific person or entity. Read the full note below, or see the compliance calendar for the underlying due dates.
Concurrent audit is a continuous examination, not a periodic one. The checklist below reflects the review points that recur across branch inspections.
On advances: sanction within delegated authority, documentation executed before disbursement, end-use verification where the facility is term lending, drawing power computed from a current stock statement, and inspection of securities at the prescribed interval.
On income leakage: correct application of the interest rate table, processing and commitment charges recovered, penal interest applied where the account is out of order, and correct classification for the purpose of income recognition.
On asset classification: identification of the date of first default, correct ageing, no upgrade without full recovery of arrears, and provisioning in line with the applicable norms.
On KYC and compliance: customer due diligence completed and recorded, periodic updation of records, and reporting of transactions where the prescribed thresholds are met.
The value of the exercise lies in reporting deviations while the branch can still correct them. A concurrent audit report that reads like a year-end audit report has been filed too late.
Last reviewed 26 August 2026.