12 Jun 2026A bank audit is the independent examination of a bank's financial statements, advances and RBI compliance — covering income recognition, asset classification and provisioning (IRAC) — to confirm the accounts give a true and fair view. In India, only an ICAI/RBI-empanelled Chartered Accountant firm can conduct a statutory bank audit.
Updated: June 2026 | Regi Tom Antony & Associates, Chartered Accountants, Kochi
Banks are the cornerstone of the economy — they hold vast public deposits and are among the most closely regulated institutions in India. A robust bank audit verifies that a bank's financial statements truly represent its position and that it complies with RBI norms on income recognition, asset classification and provisioning. Regi Tom Antony & Associates conducts bank audits for commercial banks, co-operative banks and NBFCs across India.
What is a bank audit?
A bank audit is an independent review of a bank's books, advances, deposits and regulatory compliance. Unlike an ordinary company audit, it focuses heavily on the IRAC framework (Income Recognition and Asset Classification), NPA provisioning, and adherence to RBI master directions. The objective is to confirm the financial statements are true and fair and that prudential norms are met.
Types of bank audit
| Audit type | What it covers |
|---|---|
| Concurrent Audit | Ongoing, real-time verification of branch transactions, advances and compliance. |
| Statutory Branch Audit | Annual audit of bank branches, including LFAR (Long Form Audit Report) and tax audit. |
| Revenue / Income-Leakage Audit | Detecting under-recovery of interest, charges and commission. |
| Stock & Receivables Audit | Verifying borrower security for advances against inventory and book debts. |
| Credit Audit & NPA Review | IRAC classification, provisioning adequacy and documentation review. |
Who can conduct a bank audit in India?
Only a practising Chartered Accountant firm empanelled with RBI (via the ICAI/RBI panel) and appointed for the bank or branch can conduct a statutory bank audit. Concurrent and internal/credit audits may be assigned by the bank's management to eligible CA firms.
Why the IRAC framework matters
The single biggest area of bank-audit judgement is asset classification. Standard, Sub-Standard, Doubtful and Loss assets each attract different provisioning. Mis-classification understates NPAs and overstates profit, which is exactly what RBI scrutiny targets. A rigorous bank audit tests the IRAC classification and provisioning for adequacy and documentation.
Why choose RTA for your bank audit
Our team combines Big-4 and multinational audit experience with deep knowledge of RBI master directions and the IRAC framework. We deliver reports that withstand RBI and statutory scrutiny, identify revenue leakage, and strengthen internal controls — on time and in the prescribed formats. See our Bank Audit service for engagement details.
Frequently asked questions
What is a bank audit?
A bank audit is the independent examination of a bank's financial statements, advances and RBI compliance — covering income recognition, asset classification and provisioning — to confirm the accounts give a true and fair view.
What is a concurrent audit of a bank?
A concurrent audit is a continuous, real-time audit at the branch level that verifies transactions, advances and compliance as they happen, rather than only at year-end.
Who appoints bank statutory auditors?
Statutory branch auditors are appointed from the RBI/ICAI empanelment, with appointments coordinated by the bank and approved as per RBI norms.
What is LFAR?
The Long Form Audit Report is a detailed questionnaire-based report the statutory branch auditor submits alongside the audit, covering advances, deposits, compliance and internal controls.
Regi Tom Antony & Associates provides concurrent, statutory branch, revenue, stock and credit audits for banks, co-operative banks and NBFCs across India. Related: Bank Audits, Statutory Audits, Stock Audits, Income Tax Audits. Contact: letstalk@rtaandassociates.com | Kakkanad, Kochi.