Stock and Book Debts Audit

Authors

  • Amitabha Datta Practicing Cost Accountant, Kolkata

DOI:

https://doi.org/10.33516/maj.v56i1.58-60p

Keywords:

No Keywords.

Abstract

Opportunity-5

Stock audit by external CMAs is one of the important tools of credit monitoring for banks. Apart from ensuring safety of realizable security, it also help the banks to discipline the borrowers or may act as a warning signal against probable future NPA. It would help the banks to take timely remedial measures to avoid substantial future losses. It also highlights the weaknesses, if any in the existing monitoring system of the branches through comments about maintenance of drawing power (DP) register, scrutiny of statements, review of accounts and compliance of audit findings. Over and above, Stock and Book Debts Audit also has the utility for the borrower. Comments about insurance inadequacies, wrong product description and locations stated in the Policies, if rectified in time may save the borrower from avoidable future losses.

Indians are availing the services of CMAs for ‘Stock and Book Debts Audit’ for the working capital loans (cash credit loans) sanctioned by them to the SME sector, mid-corporates and corporates. Banks will announce the empanelment process on yearly basis through the official web-sites. This information is available under procurements, expression of interest menus etc. in Banks’ Web-sites. Hence, CMAs should keep a close watch on the web-sites of commercial banks for empanelment notification on Stock and Book Debt Audit of Banks.

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Published

2021-01-31

How to Cite

Datta, A. (2021). Stock and Book Debts Audit. The Management Accountant Journal, 56(1), 58–60. https://doi.org/10.33516/maj.v56i1.58-60p

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