In this regard, I just want to share a practical way of handling advance analysis part of bank audit through MS Exel.
In almost all the banks, advances data is generated through their operational core software. They run this data on a separate software -which is meant for advances analysis- and create advances return. In State Bank of India, this advances analysis software is called CIS.
This advances analysis software creates a data file which is used by branch to generate advances returns. This data file in almost all the banks is in "dbf" format.
We can ask for a copy of this dbf file. As we know, dbf files can be opened in Exel easily. This file contains all the data regarding advances e.g. Credit Summation, Last Credit Date, D.P. Amount, TL Installment amount, overdue amount.
Once all this data is in Exel form before us, by applying various filters, we can identify all those accounts which needs to be examined in detail. For example, in C.C. A/cs, filters can be applied to find out all those accounts where last credit date is prior to 31.12.2009. This means, interest for 3rd Qtr. has not been served. There may be many more such scenarios, which we may create based on our core knowledge of subject like low credit summations, in TL A/cs, total overdue divided by amount of installment etc. The point is, we need not to search for the things manually in the printed returns of advances. With data in Exel, by creating co-relations amongst different fields, we can quickly pick all the warning signals easily.
I always feel that we badly need to learn to adopt technology in our audit processes. This post is part of my efforts to create awareness in this direction. If any member can share his experience in this regard, I shall be highly greatful.
CA. Manish Dafria
INDORE
+ 91 98260 46463
