Concurrent Audit of Credit Proposals (Credit Risk Management - CRM)

Abstract

‘Concurrent Audit’ is a continuous audit i.e., year round audit and ‘statutory audit’ a year end audit. Banks sanction loans and advances on day-to-day basis for the needy people, and these loans and advances are to be verified / audited in ‘concurrent audit’ at regular intervals. At the time of ‘design of any loan product banks clearly define the systems & procedures to be followed by the branches while sanction / process loans. Bank branches are to adhere these Guidelines for each and every loan product while sanctioning the loan. The role of the concurrent auditor is to audit, whether the Branch is following the laid instructions / guidelines. If the branch has not followed any of the said guidelines it is to be mentioned in the CONCURRENT AUDIT report.