Concurrent Audit Services in Delhi | Bank Concurrent Audit & Corporate Transaction Audit

In a Nutshell: Audit the Transaction While It Can Still Be Stopped

A concurrent audit examines transactions at the time they happen, or very shortly after, instead of months later at year end. Banks run it under the Reserve Bank of India’s concurrent audit guidelines; businesses use it to put an independent check on payments, purchases and payroll before money leaves. Startup Advisory takes concurrent audit assignments for both.

Banks: RBI circular DBS.CO.ARS.No.BC.01/08.91.021/2019-20 dated 18 September 2019 applies to scheduled commercial banks (other than RRBs), small finance banks, payments banks and local area banks.
Scope in banks: risk-based, approved by the audit committee of the board; covers cash, advances, KYC/AML, remittances, treasury, forex, housekeeping and compliance.
Corporates: pre-payment or near real-time checks on vendor payments, procurement, payroll, expense claims and collections.
Reporting: monthly reports in the prescribed format; serious irregularities and suspected fraud reported immediately.
Value: errors corrected before month end, not discovered a year later.
Provider: Startup Advisory, CA firm in Saket, New Delhi 110030. Call 9311972982.

Reviewed by CA Neeraj Rohilla, FCA — Chartered Accountant, Startup Advisory, Saket, New Delhi.

A Year-End Audit Tells You What Went Wrong. A Concurrent Audit Stops It.

By the time an annual audit finds a duplicate payment, an unauthorised discount or an advance released without security, the money is usually gone. A concurrent audit closes the gap between the transaction and the check. It is standard in banking, where RBI expects it, and increasingly used by businesses that move large sums through many hands.

Concurrent audit in banks

RBI’s revised guidelines on the concurrent audit system (circular DBS.CO.ARS.No.BC.01/08.91.021/2019-20, dated 18 September 2019) apply to all scheduled commercial banks other than regional rural banks, and to small finance banks, payments banks and local area banks. Key features:

Risk-based scope: the scope and coverage of branches and business units is decided by the head of internal audit with the prior approval of the audit committee of the board, and must cover the risk-sensitive areas of the bank’s business, including centralised processing centres.
Who audits: banks may use their own experienced staff or external auditors, including chartered accountant firms. A firm is ineligible if any of its partners is a director on the bank’s board.
Tenure: external firms generally for not more than five continuous years, and no concurrent auditor on the same branch or unit for more than three years.
Minimum coverage: cash; loans and advances (sanction, documentation, end-use, security, excess drawings); KYC, AML, FATCA and CRS; remittances and bills; housekeeping and reconciliations; treasury; non-fund-based business; foreign exchange; clearing; card business; employee conduct and mis-selling; and compliance with RBI and internal guidelines.
Reporting: in the bank’s structured format, with minor irregularities rectified on the spot, major deficiencies escalated at once, and fraud reported immediately to internal audit and the chief vigilance officer.

Concurrent audit for businesses

Pre-payment audit: every vendor payment above a threshold checked against PO, GRN, invoice, contract rates, TDS and GST before release.
Procurement: rate comparisons, vendor selection, split orders to avoid approval limits.
Payroll: joiners, leavers, salary revisions and full-and-final settlements checked each month before the payroll run.
Expenses and advances: employee claims against policy; staff and vendor advances followed to settlement.
Revenue and collections: credit notes, discounts and customer-master changes reviewed as they happen.
Compliance: TDS, GST, PF/ESI deposits and returns checked monthly, before interest and late fees build up.

How it runs

We agree a checklist and materiality limits with you, work on site or through read-only system access for a fixed number of days a month, raise queries daily, and issue a monthly report with the status of earlier observations. For businesses not ready for monthly cover, a quarterly internal audit is the lighter alternative, and where a loss has already occurred, an investigation audit.

Related Audit & Assurance Services

Internal Audit →Risk-based internal audit under Section 138 — process reviews, control testing and quarterly reports to the board or audit committee.

Stock Audit →Bank-mandated stock audits for working capital borrowers — physical verification, valuation, ageing and drawing power.

Investigation Audit →Forensic and investigation audits into suspected fraud, misappropriation and disputes — evidence-grade, confidential.

Statutory Audit →Annual statutory audit of companies under the Companies Act, 2013 and of LLPs above the audit limits — with CARO 2020 reporting.

See all audit & assurance services

Frequently Asked Questions

A concurrent audit is an examination of transactions carried out at the same time as, or soon after, they occur, so that errors and irregularities are detected and corrected quickly. It is ongoing, usually reported monthly, and complements rather than replaces the annual audit.

RBI’s guidelines dated 18 September 2019 require scheduled commercial banks (other than RRBs), small finance banks, payments banks and local area banks to maintain a concurrent audit system, with its scope and coverage decided by the head of internal audit and approved by the audit committee of the board.

Banks may use their own experienced, independent staff or external auditors such as chartered accountant firms, including retired bank staff. A firm is not eligible if any of its partners is a director on the bank’s board. Selection follows the bank’s own process.

An internal audit is periodic, often quarterly, and focuses on processes and controls. A concurrent audit is continuous and focuses on individual transactions as they occur. Many organisations use both: concurrent audit for high-volume, high-risk transactions and internal audit for the wider control framework.

Yes. There is no legal requirement for non-banking companies, but businesses with high payment volumes, many locations or decentralised purchasing commonly appoint a concurrent auditor to check payments, procurement and payroll before or shortly after they are processed.

It is usually priced as a monthly fee based on the number of audit days and the transaction volume in scope. We scope it on a call and quote before starting. Call 9311972982.

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