Concurrent audit is an examination, which is contemporary to the occurrence of transaction or is carried out as near to it as possible. Thus concurrent audit is a regular process that has to be carried out round the year at a branch on an on going basis. Concurrent audit is an independent appraisal activity conceived as a systematic examination of all financial transactions at a branch to ensure accuracy and compliance of internal systems and procedures as laid down by the bank. It aims at minimizing the incidence of serious errors and fraudulent manipulations.

Scope of Concurrent Audit is generally defined in the appointment letter, but lastly it is mentioned that “the guidelines provided are illustrative in nature and NOT EXHAUSTIVE”. Therefore the scope of Concurrent Audit is wide as compared to other types of external audits. • Format of Audit report is provided by the Bank.