EXECUTIVE SUMMERY A banking companies are requires maintaining the books of account inacc o r d a n c e w i t h s e c t i o n 2 0 9 o f t h e c o m p a n i e s a c t , 1 9 5 6 .

B a n k i n g generally a sound internal control system their day to day transaction.The auditor has to evaluate such system carefully. The fundamentalrequirement of an audit, as regards reporting on statement of accountcan be discharged from the examination of the internal checked andv e r i f i c a t i o n o f a s s e t s a n d l i a b i l i t i e s b y m a k i n g a c o m p a r i s o n a n d reconcili ation of balance with those in the year and that of amount of i n c o m e a n d e x p e n s e s b y a p p l i c a t i o n o f t e s t c h e c k s . T h e b a n k i n g regulation act casts greater responsibilities on the directors of banks asc o m p a r e d t o t h o s e o f o t h e r companies in the matter of supervisiono v e r t h e i r w o r k i n g . T h e r e f o r e , t h e y e x e r c i s e , o r a r e e x p e c t e d t o exercise greater supervision over the affairs of bank. The auditor isentities to rely on such supervision and to limit his checking to test checks. The financial position of a bank is depended on the conditionof assets, loan, investment, cash balanced and those of its liabilitiesa n d f u n d . T h e i r v e r i f i c a t i o n f o r m a n i m p o r t a n t p a r t o f t h e b a l a n c e sheet. Most of the bank have their own internal audit or inspectiondepartment entrusted with the responsibilities of checking the accounto f v a r i o u s b r a n c h e s . T h e s t a t u t o r y a u d i t o r m a y n o t , t h e r e f o r e , duplicate work.

INTRODUCTION The audit of banking companies plays a very important role in Indiaa s i t h e l p t o r e g u l a t e the banking companies in right manner. In audit of banks includes v a r i o u s t yp e s o f a u d i t w h i c h a r e n o r m a l l y c a r r i e d o u t in banking companies such as statutory audit, revenue/income expenditure audit, concurrent audit, computer and system audit etc. the above au dit ismainly conducted by the banks own staff or external auditor. However, therules and the regulation relating to the conduct of various types of audit or inspections differ from a bank to bank expect the statutory audit for whichthe RBI guidelines is applicable. In this, I have given more importance onthe overall bank audit system. In todays competitive world audit is verymuch necessary as well as compulsory , because investor investing decisionis depend on that particular concept if auditor has expressing his view about particular organization is true and fair then investor can get his ideas abouthow much he should invest in particular companies. INTRODUCTION The audit of banking companies plays a very important role in Indiaa s i t h e l p t o r e g u l a t e the banking companies in right manner. In audit of banks includes v a r i o u s t yp e s o f a u d i t w h i c h a r e n o r m a l l y c a r r i e d o u t in banking companies such as statutory audit, revenue/income expenditure audit, concurrent audit, computer and system audit etc. the above audit ismainly conducted by the banks own staff or external auditor. However, therules and the regulation relating to the conduct of various types of audit or inspections differ from a bank to bank expect the statutory audit for whichthe RB I guidelines is applicable. In this, I have given more importance onthe overall bank audit system. In todays competitive world audit is verymuch necessary as well as compulsory , because investor investing decisionis depend on that particular concept if auditor has expressing his view about particular organization is true and fair then investor can get his ideas abouthow much he should invest in particular companies. )

1 AUDIT OF BANK Revenue audit: Revenue audit refers to the audit of revenues/ incomes. In revenue audit of b a n k i n g c o m p a n i e s , a u d i t o r s g o t h r o u g h t h e v a r i o u s s o u r c e s o f revenuesf r o m w h i c h b a n k e a r n i n c o m e . I n r e v e n u e a u d i t o f b a n k s , t h e a u d i t o r inspects that all the records are showing true and fair picture of revenues or not.

1 AUDIT OF BANK CONCLUSION The project the position of Indian banking system as well as the principal laid down by the Basel Committee on banking supervision. This assessmentwas done in seven major areas, which are core principals, concurrent audit,i n t e r n a l a u d i t , d e p o s i t , l o a n a c c o u n t i n g a n d t r a n s p a r e n c y a n d f o r e i g n exchange transaction. The project concluded that, given the complexity anddevelopment of Indian banking sector, the overall level of compliances withthe standards and codes is of high order. This project gives the correct ideasabout how the major areas can be found by way of effective auditing systemi.e. errors, frauds, manipulations etc. form this auditor get the clear ideashow to recommend on the banks position. Project also contain that how toconduct of audit of the banks, what are the various procedure through whichaudit of banks should be done. Form auditing point of view, there is proper follow up of work done in every organization whether it is banking companyo r a n y o t h e r c o m p a n y o r a n y o t h e r c o m p a n y t h e r e n o m i s c o n d u c t o f transactions is taken places for that purpose the auditing is very importantaspect in todays scenario form company and point of view.