I am giving below an incident which shows how bank managements treat audit reports. And you will know why bank scams continue.
There is system that if you find serious irregularities or issues which require immediate attention of the management you have to submitted a special report.
This is some time in 2000 while auditing one of the branches of a nationalised bank as internal auditor, it was observed that many a forex outstanding entries are being adjusted wrongly just to eliminate it from outstanding. And many FEMA violations, and submitted some 12 special reports. Hence exceeded the time alloted. And received a show cause notice that why the TA & DA for the days exceeding the alloyed be disallowed. You have wasted time in submitting special reports which could have been avoided.
In reply I explained in detail the reason for submitting special report for each report. And also added a nasty comment that if this is the attitude of the Audit division it is no wonder that Nostro manipulation of lakhs of rupees in some other branch of the bank has happened. What happened to that incident is mistry even now. Even though I did not mention to sanction my TA& DA eligible they sanctioned it. But did not initiate any action on violations. It is such attitude to audit that is responsible for bank scams.
There is system that if you find serious irregularities or issues which require immediate attention of the management you have to submitted a special report.
This is some time in 2000 while auditing one of the branches of a nationalised bank as internal auditor, it was observed that many a forex outstanding entries are being adjusted wrongly just to eliminate it from outstanding. And many FEMA violations, and submitted some 12 special reports. Hence exceeded the time alloted. And received a show cause notice that why the TA & DA for the days exceeding the alloyed be disallowed. You have wasted time in submitting special reports which could have been avoided.
In reply I explained in detail the reason for submitting special report for each report. And also added a nasty comment that if this is the attitude of the Audit division it is no wonder that Nostro manipulation of lakhs of rupees in some other branch of the bank has happened. What happened to that incident is mistry even now. Even though I did not mention to sanction my TA& DA eligible they sanctioned it. But did not initiate any action on violations. It is such attitude to audit that is responsible for bank scams.
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