A concurrent audit is an ongoing review of financial transactions and activities while regular operations are taking place. It helps identify errors, irregularities, and procedural gaps at an early stage, allowing the concerned organisation to take timely corrective action.
Concurrent audits are commonly associated with banking operations, where transactions and processes need regular monitoring. At Abhishek Parwal & Associates, we provide concurrent audit services focused on transaction verification, procedural compliance, documentation, and the review of relevant financial controls, according to the scope of the assignment.
What Does a Concurrent Audit Cover?
A concurrent audit reviews financial transactions in real time to ensure accuracy, identify irregularities, and maintain compliance with established procedures.
Review of Day-to-Day Transactions
Examination of selected financial transactions and operational activities to check whether they are recorded, supported by documents, and processed according to applicable procedures.
Verification of Banking Transactions
Review of banking transactions, account entries, and relevant records to identify discrepancies and assess compliance with the procedures applicable to the assignment.
Review of Loans and Advances
Examination of loan and advance-related records, supporting documents, and relevant approvals to check whether prescribed procedures have been followed.
Documentation and Record Verification
Checking the completeness of transaction records, supporting documents, approvals, and other relevant financial paperwork maintained during regular operations.
Compliance and Control Checks
Review of adherence to applicable policies, regulatory requirements, and internal procedures, with attention to gaps that may require further examination.
Reporting of Audit Observations
Recording and reporting significant observations, discrepancies, and procedural gaps so that the concerned management can review them and take appropriate action.
Frequently Asked Questions
Its main purpose is to review transactions and processes during ongoing operations, helping identify errors and control gaps at an early stage.
A concurrent audit generally focuses on transactions and activities as they occur, often within banking operations. An internal audit usually has a broader scope covering internal controls, business processes, and risk management.
It helps banks monitor transactions, review procedural compliance, identify irregularities, and address potential issues in a timely manner.
Concurrent audits are generally carried out at regular intervals during ongoing operations. The exact frequency and scope depend on the institution's requirements and applicable guidelines.
Depending on the assignment, records may include transaction documents, account statements, loan files, approval records, registers, and other relevant banking or financial documents.
The observation is documented and reported to the appropriate authority or management in accordance with the applicable reporting process. Further examination or corrective action may then be required.
