National Bank of Pakistan Branch Audit Checklist

Verification of Branch Financials Doc. No. 1 March 2017 Page 1 of 4

Revised Audit Checklist for Verification of Branch Financials KPIs of branches

NBP Main Branch Mansehra (0364), Abbottabad Region

Audit Checklist for verification of Quarterly KPIs
Audit
Sr.
Audit Procedure Response Remarks, if any.
No.
(Yes/No)
1. Has the branch debited loan accounts and credited the same in NO
customers’ deposit accounts without any authority to inflate the
deposits / advances figure?

For said purposes, check the both legs of all transfer

transactions (Rs. 1 million and above) of the last 3 working day
of the quarter under review and first two days of the subsequent
quarter.

2. Has the branch inflated figures of deposits / advances by NO

debiting / crediting other branches through RBVs to achieve it
targets?

For said purposes, check the both legs of all RBVs transactions
(Rs. 1 million and above) of the last 3 working day of the
quarter under review and first two days of the subsequent
quarter. For that purpose audit may also refer List A of the
branch.

3. Check that no manual entries have been posted in the SAP GLs NO
having subsidiary ledgers or GLs in which branch entries are
not allowed. Such GLs are for example salary and wages,
advances, deposits and clearing accounts.
No manual entries
For said purposes, check the both legs of all transfer found
transactions (Rs. 1 million and above) of the last 3 working day
of the quarter under review and first two days of the subsequent
quarter.

4. Check that the balance appearing in cash-in –hand GL head of NO Manually prepared
SAP-GL matched with the manually prepared Cash Book (B- Cash Balance Book (B-
52) of the branch as at closing date. 52) do not match with
SAP GL Head and a
Further, also check balance appearing in manual B-52 with the difference of Rs.
system generated B-52 of closing date (if generated and 1,716,798.19 (short)
preserved by the branch – being a front end report). has been observed as
on 31.122017

A difference of Rs.
333,429.00 has been
observed between
mannual and system
generated Cash
Balance book (B-52)
National Bank of Pakistan Branch Audit Checklist
Verification of Branch Financials Doc. No. 1 March 2017 Page 2 of 4

5. Check that the balances appearing against various NO Difference was

(Assets/Liabilities) SAP-GL heads matched with the balances observed in various
appearing in subsidiary records. GL Heads with
subsidary record.
For said purposes, balances in SAP-GL can be compared with the Detail of unbalanced
reports generated from Putty and manually prepared registers for Heads/ Accounts is
Staff / PMYBL loans etc. attached as additional
sheet.
Reports generated from putty for balancing purpose are as under
for reference only; GL-RECON-
BRANCH/COST has
 ZREP043 credit balance of Rs.
 ZREP044 1,923,225.27 as on
 ZREP045 31.12.2017.
 ZREP046
 ZREPSTRIPACD System adjustment
 ZREPRMT024 account has debot
 ZB43AO balance of Rs.
 ZREPLNSTAT 204658.93

Note: All un-usual GL-Heads showing balances should be Clearing adjustment

reported such as GL-RECON-BRANCH/COST and SYSTEM Account has debot
ADJUSTMENT A/C etc. balance of Rs.
14,286,768.21
6. With respect to Special Rate TDRs, check on sample basis YES
whether;
1. Special Rate Approval from competent authorities obtained
and kept with the branch. 1. YES
2. Special Rate TDRs are opened in product type 2555 in 2. YES
profile. 3. YES
3. Interest/Profit rates are correctly defined in profile. 4. YES
4. Issuance and maturity date has been correctly defined in 5. YES
profile. 6. YES
5. Matures Special Rate TDRs have been marked as “Matured”
in the profile.
6. Roll over (if any) has been correctly done under profile.
7. Check that the foreign currency transactions have been marked to NO USD Difference
market (revalued) on the applicable exchange rates fed and @110.5175=
conveyed by TMG. PKR 5509.68 ( GL
Less)
For said purposes, manually convert FC-cash-in-hand into
applicable PKR and cross check with the balances appearing in GBP Difference @
SAP-GL heads, as on last working day of the quarter under 148.6681=
PKR 21656.662 (GL
review.
Excess)

Euro Difference @
131.8916=
PKR 5354.91 ( GL
Excess)
National Bank of Pakistan Branch Audit Checklist
Verification of Branch Financials Doc. No. 1 March 2017 Page 3 of 4

8. On random basis check that the calculations are correct with YES
respect to following and no physical RBVs sent to FCD;

1. Medical and pension paid to pensioners,

2. Rebate claim on NIDA and other deposit related
product,
3. Compensation claim on payment to retired employees’
medical, pension, benevolent and provident fund.

9. Check that following GL heads are showing NIL balance as on Balance Rs. 595,498.00 Debit
year end under review; outstandin balance in GL Head
1. SAP GL Code 1102800042 g in both 1102800042
2. SAP GL Code 1102800068 Heads
Rs. 7,011,904.00 Debit
Balance in GL Head
1102800044
10. Check that accrual of markup Income on export refinance NA
scheme of SBP and NBP are calculated correctly by the branch
(if not auto calculated by the system).

11. Whether the branch has reported all NPLs in quarterly SCAs YES
submitted to the controlling offices and the same should be
reconciled with system report of overdue (ZREPLNSTAT).

Further, check that accounts are correctly classified and correct

amount of provision recorded in the branch books in line with
the PRs.

Note: The additions / deletion and up-gradation / down-gradation

should be reported through VSCA-II and VSCA-III.

Auditors should also check whether the Profile has a capacity

to classify the advances account automatically in the system
based on time bounded criteria as per PRs (either based on
overdue mark-up or principal amount after expiry of the
approved limit period).

12. Whether all provisions / accruals under sub-heads of Charges YES

Account are justified and correctly made as on March / June /
September / December as per Bank’s policy and reversed /
adjusted on the given timeline?

13. Whether provision for commission / exchange on Government YES

transactions, Government Draft, Railway Collections, EOBI, and
Pension Payments are made correctly? (Instruction Circular No.
44/2003 dated 13/06/2003)

14. Obtain List B of the branch and calculate the impact of long Impact
outstanding IBR entries on following KPIs; observed
on An impact of Rs.
1. Deposits profitabilit 9042/- on profitability
2. Advances y (Inflated)
3. Profitability
National Bank of Pakistan Branch Audit Checklist
Verification of Branch Financials Doc. No. 1 March 2017 Page 4 of 4

15. Whether the rate picked by system for mark-up calculation and YES
accrual on advances is correct as per Sanction Advice?

For said purposes, 3 account of each type of lending product

should be checked on random basis.

JAMSHED KHAN
OG-I/TEAM LEADER