Page 272 - CA Final Audit Titanium Full Book. (With Cover Pages)
P. 272
CA Ravi Taori
Classification and Provision
Identification System: Verify whether bank has a system of ongoing identification and classification of
advances through CBS without manual intervention and its accuracy in crystallising date of NPA.
Branch NPA Classification: Examine whether the classification made by the branch is appropriate.
Particularly, examine the classification of advances where there are threats to recovery.
Secured and Unsecured Portions: Examine whether the secured and the unsecured portions of advances have
been segregated correctly and provisions have been calculated properly.
Date of NPA Review: Review and compare the date of NPA of loan accounts mentioned in current year
statements with that of previous year. Reasons for any change should be ascertained.
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