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CH -1 INTRODUCTION TO BANK 1

1.1 Introduction
1.2 History Of Bank
1.3 Definition
1.4 Types Of Bank
1.5 Regulation of Bank
CH-2 AUDITING 2

2.1 Introduction
2.2 Scope Of Audit
2.3 Features Of Audit
2.4 Objectives Of Audit
2.5 Principles of Audit

CH-3 AUDIT PLANNING 3

3.1 Meaning Of Audit Planning

3.2 Objectives of Audit Planning
3.3 Factor To Be Consider
3.4 Audit Programme
3.5 Advantage and Disadvantage of Audit
CH-4 PROVISION RELATING AUDITOR 4

4.1 Introduction To Auditor

4.2 Appointment Of Auditor
4.3 Qualification & Disqualification of Auditor
4.4 Rights & Duties of Auditor
CH-5 BANK AUDIT 5

5.1 Introduction
5.2 Role of RBI in Audit
5.3 Audit of Banking Company

CH-6 BANK AUDIT PROCESS 6

6.1 Audit of Incomes

6.2 Revenue of Audit Procedures
CH-7 TYPES OF AUDIT IN BANK 7

7.1 Statutory Audit

7.2 Internal Audit
7.3 Concurrent Audit
7.4 System Audit
8 CONCLUSION 9
9 BIBLOGRAPHY & WEBLOGRAPHY 10

Index
 Chapter – 1

INTRODUCTION TO BANK
1.1Introduction

A bank is a financial institution that accepts deposits from the public and creates a
demand deposit while simultaneously making loans. Lending activities can be directly
performed by the bank or indirectly through capital markets.
Because banks play an important role in financial stability and the economy of a country, most
jurisdictions exercise a high degree of regulation over banks. Most countries have
institutionalized a system known as fractional-reserve banking, under which banks hold liquid
assets equal to only a portion of their current liabilities. In addition to other regulations
intended to ensure liquidity, banks are generally subject to minimum capital requirements
based on an international set of capital standards, the Basel Accords.
Banking in its modern sense evolved in the fourteenth century in the prosperous cities
of Renaissance Italy but in many ways functioned as a continuation of ideas and concepts of
credit and lending that had their roots in the ancient world. In the history of banking, a number
of banking dynasties – notably, the Medicis, the Fuggers, the Welsers,
the Berenbergs, and the Rothschilds – have played a central role over many centuries.
The oldest existing retail bank is Banca Monte dei Paschi di Siena (founded in 1472), while the
oldest existing merchant bank is Berenberg Bank (founded in 1590)

1.2 History of banking

Began with the first prototype banks, that is, the merchants of the world, who gave grain
loans to farmers and traders who carried goods between cities. This was around 2000 BCE in
Assyria, India and Sumeria. Later, in ancient Greece and during the Roman Empire, lenders
based in temples gave loans, while accepting deposits and performing the change of money.
Archaeology from this period in ancient China and India also shows evidence of money lending.
Many scholars trace the historical roots of the modern banking system to medieval and
Renaissance Italy, particularly the affluent cities of Florence, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th century Florence,
establishing branches in many other parts of Europe.[1] The most famous Italian bank was the
Medici Bank, established by Giovanni Medici in 1397.[2] The oldest bank still in existence is
Banca Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating
continuously since 1472.[3] Until the end of 2002, the oldest bank still in operation was
The Banco di Napoli headquartered in Naples, Italy, which had been operating since 1463.
1.3 Definition

The definition of a bank varies from country to country. See the relevant
country pages for more information. Under English common law, a banker is
defined as a person who carries on the business of banking by conducting current
accounts for their customers, paying cheques drawn on them and also collecting
cheques for their customers.