pvtltd.co

Audit & Assurance

Concurrent Audit

RBI Concurrent Audit System support for banks and NBFCs — control testing, exception reporting, and branch monitoring workpapers run through the financial year.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed:
Starting from Discuss with usTypical timelineConcurrent Audit

Continuous audit under the RBI Concurrent Audit System — control testing, transaction verification, and exception reporting while the business is live, for banks and NBFCs.

What is included
  • • Concurrent audit scope mapping and frequency design
  • • Cash, remittance, and transaction verification workpapers
  • • Control testing and exception identification
  • • Credit and KYC-related checking as per the agreed scope
  • • Exception and compliance reports to management
  • • Coordination with statutory auditors on report findings
Documents required
  • • Branch and system inventory with transaction volumes
  • • Delegated authority and approval matrices
  • • Policy and procedure manuals
  • • Prior audit notes, exception registers, and RBI communications
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • • Section 35 of the Banking Regulation Act 1949
  • • RBI Master Circular on the Concurrent Audit System
  • • Section 30 of the Banking Regulation Act 1949
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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Scope

Scope the engagement

We map the branches, systems, transaction types, and reporting frequency against the RBI Concurrent Audit System expectations.

Step 2Plan

Build the audit programme

We design control-testing steps for cash, remittances, credit, and KYC areas, with sampling rules per the agreed scope.

Step 3Fieldwork

Run the fieldwork

We test transactions and controls continuously, documenting exceptions with evidence and root cause.

Step 4Report

Report exceptions

We issue exception and compliance reports to management at the agreed frequency, flagging items that need immediate action.

Step 5Close

Close the period cycle

We reconcile the period's findings, follow up on rectification, and brief the statutory auditor's team on open items.

AEO summary

Concurrent audit is the RBI-mandated continuous audit of a bank's or NBFC's branches and systems — control testing, verification of transactions, and exception reporting while the business is live, not after the year ends.

Why the audit runs during the year

The whole point of concurrent audit is timing: it checks cash, remittance, credit, and KYC activity while the operations are live, so an irregularity is detected within days rather than months. That is what makes it a control in its own right, and why the RBI's Concurrent Audit System expects it to be continuous and structured.

The reporting cadence is set at the start — weekly, fortnightly, or monthly — and each report carries exceptions with evidence, so management can act before the position worsens.

  • • Errors caught while they can still be corrected
  • • Exception reports that feed risk management
  • • A documented control trail for regulators and the statutory auditor

What the workpapers cover

A typical concurrent audit programme covers cash balances and remittances, credit sanction compliance, KYC and AML checks at the branch level, and adherence to delegated authority. Each area has defined sampling and testing steps so the coverage is consistent across periods.

For a Private Limited company or NBFC, the same discipline applies to treasury operations, receivables, and related-party transactions — the scope is built around where the money moves.

  • • Cash, remittance, and transaction verification
  • • Control testing against delegated authority
  • • Exception registers that track closure

Government fees

Fee breakdown

ItemFeeNotes
No standalone government feeNilThis is a professional engagement; fees apply only if a connected statutory filing or approval is part of the scope.

Timeline

Typical turnaround

Typical timeline usually means a continuous turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

This is a professional assignment — fees track the number of branches, transaction volumes, and reporting frequency; there is no standalone government fee.

Related services

Keep the company moving

Statutory Audit

Statutory audit under s.143 Companies Act 2013 and s.30 Banking Regulation Act 1949, with UDIN and board-ready reporting

Internal Audit

Risk-based internal audit covering process efficiency, internal controls, and compliance — mandatory for certain companies under Rule 13 of the Companies (Accounts) Rules 2014

Forensic Audit

Investigation support, exception analysis, and evidence-backed reporting for suspected fraud or control breaches

Tax Audit

Tax audit in Form 3CA/3CB with Form 3CD particulars for businesses crossing the s.44AB thresholds — due 30 September

FAQ

Frequently asked questions

Who needs a concurrent audit?
Banks are required to operate a concurrent audit system under the RBI's supervisory framework — the RBI Master Circular on the Concurrent Audit System sets the coverage, frequency, and reporting expectations. NBFCs and large treasury or branch operations often adopt the same model voluntarily or at their auditor's recommendation.
How is concurrent audit different from statutory or internal audit?
A concurrent audit is continuous and operates while transactions are happening — it checks cash, remittances, credit, and controls in near real time so exceptions are caught early. A statutory audit under s.143 of the Companies Act 2013 (for the company) or s.30 of the Banking Regulation Act 1949 (for banks) is an annual, year-end opinion, and internal audit is a periodic risk-based review.
What happens to the exceptions we find?
Exceptions are reported to management at the agreed frequency and escalated where the finding is material. The RBI's framework expects the concurrent audit system to feed into the bank's risk management — the point is that a flagged exception is corrected before it becomes a loss or a regulatory observation.
What should you send us before we start?
Send the branch and system inventory, transaction volumes, delegation of authority matrix, and the most recent audit notes or regulator communications. That is enough for us to propose a scope, sampling plan, and reporting cadence.

Canonical reference: https://www.pvtltd.co/services/concurrent-audit

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