Concurrent Audit

CONCURRENT AUDIT SERVICES

The activities of mutual fund houses, financial institutions, and especially banks and their risk profiles are growing complex day by day.

This is because of the increasing sophistication of various financial technology and the globalization and deregulation of financial services. As the banking services are developing with passing time, the risk factor is increasing as well. However, when it comes to the efficiency of companies and especially banks, it is calculated on their skills of management of risks. Therefore to manage risk and to gain control over operations, one must perform all the steps one might need to prevent the risk of fraud and error. The process of controlling is supplemented with an effective concurrent audit service like the one we offer at GRC Solutions. The concurrent audit of banks ensure that relevant regulatory requirements are met, and financial transactions are accurately processed.

WHAT IS A CONCURRENT AUDIT?

A concurrent audit or bank audit can be defined as a timely and systematic examination of the entity’s financial transactions to ensure accuracy, authenticity, and compliance with relevant regulatory requirements. Since the volume of transactions is very high, it is done on a regular basis. As concurrent auditing is contemporaneous with the transactions occurring, the process becomes a bit complex.

At GRC Solutions, we ensure effectiveness in our auditing process for which we reduce the time interval between auditing and its examination for speed of actions and efficient risk management.

Objectives of concurrent audit

On the one hand, where the objective of concurrent auditing is to ensure timely examination of the financial transactions; there are various other objectives as well which we keep in mind for carrying out concurrent audit such as:

• Ensuring timeliness and accuracy in maintaining the company's or bank's books of accounts and periodical financial statements. ​

• To improve the internal control system of the entity.

• To improve transparency by implementing vouchers or evidence-based payments in the company or bank.

• To ensure that the system, rules, regulations, policies, and procedures are followed properly by the company in line with the compliance requirements.

Differences between internal auditing and concurrent auditing

Internal auditing is conducted to upgrade the client's risk management practices and strategy. It enables management in strengthening internal controls and achieving operational efficiencies. Internal auditing also helps management in identifying, analyzing, and preventing errors and irregularities.

Concurrent auditing, on the other hand, is a systematic auditing process to ensure compliance, accuracy, and authenticity of the financial transactions. The main emphasis is on checking 100% transactions as they happen to detect irregularities immediately.