Concurrent Audit Services — assurance in real time.
Continuous, real-time audit of bank branches, NBFC operations, and treasury functions — aligned with RBI Master Directions, covering credit, deposits, KYC, AML, income leakage, and statutory compliance with monthly and quarterly reporting.
In a bank or NBFC, the cost of a missed control is rarely a small thing. A loan disbursement that bypasses appraisal, a KYC gap that lets a suspicious account open, a treasury transaction outside delegated authority, an NPA that should have been classified but wasn't — each one can travel quietly for months before turning up in a statutory audit, a regulatory inspection, or worse, a public incident. By then, what could have been corrected in a day takes a year to unwind.
Concurrent audit exists for exactly this reason. It runs in parallel with the operations of a bank or NBFC, examining transactions as they happen — daily for branch operations, real-time for high-value treasury, weekly for credit and recovery cycles. Exceptions are reported as they are discovered, monthly summaries reach branch and zonal management, and quarterly reports feed into the audit committee and ultimately into the statutory auditor's Long Form Audit Report.
Our concurrent audit team is empanelled with public and private sector banks and works across branch concurrent audit, treasury and forex verification, credit appraisal review, NBFC operations, and co-operative bank assignments. Every engagement is staffed by trained bank audit professionals who understand RBI circulars, IRAC norms, and the operational realities of financial services — and who report on time, every month, every quarter.
Concurrent Audit Services We Offer
Bank Branch Concurrent Audit
Daily and weekly audit of branch operations — deposits, advances, cash management, KYC, NPA classification, and statutory compliance.
Treasury & Forex Audit
Real-time audit of treasury operations — money market deals, forex transactions, investments, delegated authority, and dealing room controls.
Credit Appraisal Audit
Verification of credit appraisal files — financial analysis, CIBIL checks, security creation, sanction terms, and disbursement compliance.
NBFC Concurrent Audit
Concurrent audit for NBFCs in the Upper and Middle Layer under RBI's Scale Based Regulation — loans, recoveries, asset classification, and reporting.
Co-operative Bank Audit
Concurrent audit for urban and primary co-operative banks under RBI guidelines — branch coverage, advances, deposits, and prudential compliance.
Income Leakage Audit
Identification of leakages in interest income, service charges, processing fees, commissions, and other income — with recovery recommendations.
KYC & AML Compliance Audit
Review of customer due diligence, KYC documentation, AML alerts handling, CTR/STR filings with FIU-IND, and PEP screening processes.
LFAR Support & Coordination
Concurrent audit findings packaged for the statutory auditor's Long Form Audit Report — making the year-end LFAR exercise faster and cleaner.
Our Concurrent Audit Process
Empanelment & Allotment
Bank empanelment, branch or function allotment, engagement letter, and scope confirmation aligned with RBI Master Direction.
Coverage Plan
Daily/weekly verification calendar, sample-based testing schedule, and identification of high-risk transactions for 100% review.
Real-Time Verification
On-site or system-based verification of daily transactions, credit files, KYC, treasury deals, and statutory adherence.
Exception Reporting
Immediate flash reports for serious irregularities and monthly exception lists to branch management with remediation owners.
Monthly & Quarterly Reports
Consolidated monthly reports to branches and zonal offices, quarterly reports to head office, audit committee, and statutory auditor.
Why Concurrent Audit Matters
Frequently Asked Questions
Concurrent audit is a system of continuous, real-time audit performed alongside the regular operations of a bank, NBFC, or large enterprise — as transactions occur, rather than after the period has closed. Auditors examine daily transactions, credit appraisals, KYC, treasury operations, and statutory compliance on an ongoing basis. The aim is to detect irregularities, income leakages, and control breakdowns at the earliest possible point, when corrective action is still meaningful.
Concurrent audit is mandated primarily by the Reserve Bank of India through Master Directions for commercial banks, regional rural banks, urban co-operative banks, and certain NBFCs. The RBI prescribes coverage thresholds — typically based on branch size, business volume, and risk classification. Beyond RBI mandates, large corporate groups and financial services firms commission concurrent audit voluntarily to manage operational risk and reduce statutory audit pressure at year-end.
RBI's Master Direction on concurrent audit prescribes the scope, coverage, periodicity, and reporting framework. Banks must cover branches and functions accounting for a specified percentage of total business — typically a substantial share of advances, deposits, and treasury exposure. The scope includes credit, deposits, treasury, KYC and AML compliance, NPA classification, income leakage, and adherence to circulars. Findings flow into monthly and quarterly reports to bank management and feed into the statutory auditor's LFAR.
Statutory audit happens after the financial year closes and reviews financial statements for the year as a whole — its output is the auditor's opinion and CARO report. Concurrent audit happens during the year, on a daily or weekly cycle — its output is monthly and quarterly reports flagging exceptions, control failures, and income leakages while they can still be corrected. The two are complementary: concurrent audit findings feed directly into the statutory audit, particularly through the Long Form Audit Report (LFAR) for banks.
Yes. RBI has progressively extended concurrent audit requirements to NBFCs, with the framework applying more rigorously to large NBFCs in the Upper Layer (NBFC-UL) and Middle Layer (NBFC-ML) under the Scale Based Regulation framework. The scope typically covers loan disbursements, recoveries, provisioning, asset classification, regulatory compliance, and statutory reporting. Many NBFCs voluntarily implement concurrent audit even where not mandated, particularly for higher-risk lending portfolios.
The Long Form Audit Report is a detailed annual report submitted by the statutory auditor of a bank to the bank's management and the RBI. It covers areas not addressed in the main audit report — asset quality, NPA classification, credit appraisal, treasury operations, internal controls, KYC compliance, and statutory adherence. Concurrent audit findings during the year are key inputs into the LFAR, and a strong concurrent audit programme makes the LFAR exercise far more efficient at year-end.
Concurrent audit teams typically submit monthly reports to branch management and zonal/regional offices, with consolidated quarterly reports to head office and the audit committee. Major exceptions and serious irregularities are reported immediately through flash reports rather than waiting for the periodic report cycle. RBI inspectors also review concurrent audit reports during their on-site inspections of banks.
Public sector and private sector banks maintain their own empanelment lists, refreshed periodically. Empanelment criteria typically include the firm's standing with ICAI, number of partners, experience in bank audits, geographic coverage, Peer Review Certificate, and absence of disciplinary action. Many banks also require specific bank audit experience or training. Empanelled firms are then allotted branches based on firm size, location preference, and bank policy.
Take Your Bank or NBFC Audit-Ready Every Day
Talk to our team about concurrent audit engagements — branch, treasury, credit, or NBFC scope — with monthly reporting, flash exceptions, and statutory audit handoff built in.
Talk to a Concurrent Auditor or call +91 9819 000 511