A Study on Concurrent Audit Procedure with Special Reference to CA Firm
Ramya R Chikmath1*, Dr. Kanchan G. Rajput2
Abstract
This research provides an in-depth, qualitative analysis of the procedures, challenges, and effectiveness of concurrent auditing in the banking and financial sector, with special reference to a Chartered Accountancy (CA) firm. The study is contextualized through a focused case study of a well-established CA firm recognized for its extensive experience in conducting concurrent audits for a range of banking clients. The methodology employs a descriptive approach, carefully documenting the firm’s audit processes and controls, combined with qualitative research techniques such as direct observation, informal discussions with audit professionals, and review of working papers. A purposive sampling method was used to select this specific firm because of its active engagement with multiple financial institutions, which provided rich, firsthand insights. The findings highlight how concurrent audits ensure real-time examination of transactions, strengthen internal controls, and help detect irregularities early, while also identifying challenges such as tight timelines, evolving regulatory requirements, and the need for advanced audit tools. The paper identifies key challenges faced by banks and financial institutions during concurrent audits, including the need for continuous real-time monitoring of transactions, strict adherence to constantly changing regulatory guidelines, and the timely detection of irregularities in areas such as cash management, loan disbursement, and compliance reporting. A significant finding is that tight audit schedules and the rapid adoption of technology-based systems create pressure on auditors to maintain accuracy while meeting deadlines. The study concludes that professional Chartered Accountancy (CA) firms play a crucial role as independent reviewers and advisors, bridging the gap between complex regulatory requirements and the day-to-day operations of financial institutions. They provide essential oversight, ensure immediate corrective action when discrepancies arise, and strengthen internal controls and governance. By delivering these services, CA firms help banks reduce risk, safeguard assets, and maintain public confidence in the financial system.
Keywords:
Concurrent Audit, Chartered Accountancy Firm, Banking Sector, Internal Control, Risk Management, Regulatory Compliance, Financial Institutions, Real-Time Monitoring, Audit Procedures.
