MOC Format for Bank Audit — Memorandum of Changes (Word)

The Memorandum of Changes a statutory branch auditor submits with the bank branch audit report — MOC schedule, IRAC classification-change annexure, income-recognition reversals and the MOC summary, with a nil-MOC note. Editable Word on firm letterhead.

Free · CORAA original — SA-aligned

Updated 29 Jul 2026

Submitted to

Statutory Central Auditors, via closing process

Timing

With the branch audit report — typically April–May

Covers

Classification, provisioning, income reversal

Nil MOC

Certificate still required by most banks

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Your firm — letterhead

Appears at the top of the document as the audit firm letterhead.

Audit firm name

Audit firm address

Used as the letterhead block.

Engagement partner

ICAI membership no.

Firm registration no.(optional)

Engagement details

The client and period this document is for.

Bank name

Branch name

Branch code / BSR code(optional)

Year ended

The financial year-end the branch audit covers — 31 March for Indian banks.

Date of signing

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MOC Format for Bank Audit — Memorandum of Changes

31 July 2026

MEMORANDUM OF CHANGES (MOC)

{{bank_name}} — {{branch_name}} Branch (Branch / BSR Code: )

For the year ended {{period_end}}

To: The Statutory Central Auditors, {{bank_name}} (routed through the controlling / zonal office as per the Bank's closing instructions)

We enclose the Memorandum of Changes arising from our statutory audit of the above branch for the year ended {{period_end}}. The changes listed below have been proposed to the branch returns; the branch's concurrence or otherwise is recorded against each item.

Part I — MOC Schedule: Changes in Amounts

S. No.	Account / head of account	As per branch returns (₹)	As per audit (₹)	Change + / − (₹)	Reason for change (branch concurrence noted)
1
2
3

Part II — Changes in Asset Classification (IRAC)

Accounts where the classification reported by the branch requires revision under RBI's Master Circular on Prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP):

Borrower account	Existing IRAC status (per branch)	Revised status (per audit)	Additional provisioning impact (₹)
	Standard / SMA	Sub-Standard / Doubtful / Loss

Part III — Income-Recognition Reversals

Interest and other income recognised on accounts identified as NPA during audit, to be de-recognised / reversed in terms of the IRACP norms (income on NPAs is recognised only on realisation):

Borrower account	Income recognised by branch (₹)	Amount to be reversed (₹)	Reason

Part IV — MOC Summary (for the Branch Audit Report)

Particulars	Increase (₹)	Decrease (₹)
Advances
Provisions (NPA / standard-asset / other)
Interest income
Other income
Other assets / other liabilities
Net effect on profit for the year

Usage Notes

Route every audit adjustment through the MOC — even where the branch agrees with the change. Branch returns are signed before the audit; the branch cannot alter them, so the MOC is the only mechanism by which corrections reach the Statutory Central Auditors for the consolidated financial statements. Record the branch's concurrence in the reason column.
Where no changes are proposed, most banks' closing instructions still require a nil-MOC certificate from the branch auditor — do not simply omit the MOC.
The MOC must tie to the branch audit report and the LFAR: classification changes in Part II should reconcile with the NPA movement reported in the LFAR, and the Part IV summary should agree with the figures reported to the SCA.
Many banks prescribe materiality cut-offs for MOC items in the closing circular (minimum amounts per item). Follow the Bank's closing instructions for the year — they govern format, cut-offs and routing.

Place: __________________

Date: 31 July 2026

For {{firm_name}}

Chartered Accountants

Firm Registration No.:

_______________________________

Partner (Membership No.: {{icai_membership_no}})

Statutory Branch Auditor

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What’s inside

An excerpt from the template.

MEMORANDUM OF CHANGES (MOC)

___ — ___ Branch (Branch / BSR Code: ___)

To: The Statutory Central Auditors, ___ (routed through the controlling / zonal office as per the Bank's closing instructions)

We enclose the Memorandum of Changes arising from our statutory audit of the above branch for the year ended ___. The changes listed below have been proposed to the branch returns; the branch's concurrence or otherwise is recorded against each item.

↑ Excerpt only — the full template is what you download as Word

About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, nothing stored on our servers. We’ll ask for a work email once before your first download so we can send you the file and the occasional relevant update; after that, downloads on this device are instant. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

What is the MOC in a bank branch audit?

MOC stands for Memorandum of Changes — the schedule through which the statutory branch auditor proposes changes to the branch returns: reclassification of advances under the IRAC norms, additional provisions, reversal of income recognised on NPAs, and corrections of other misstatements. The Statutory Central Auditors consolidate the MOCs from all audited branches into the bank's financial statements, so the MOC is the formal channel by which branch-audit findings reach the balance sheet.

Is an MOC required even if the branch agrees to pass the correction?

Yes. The branch returns are signed and submitted before the statutory audit begins, so the branch cannot amend them — any change, agreed or disputed, must flow through the MOC so the Statutory Central Auditors can give effect to it centrally. Where the branch concurs, record that concurrence against the item; where it disputes the change, state the branch's position and your basis. Skipping the MOC because "the branch will pass the entry" breaks the consolidation trail.

What if the audit results in no changes at all?

Most banks' closing instructions require a nil-MOC certificate — a short signed statement that the audit of the branch for the year did not result in any Memorandum of Changes. Check the closing circular for the prescribed wording; do not simply leave the MOC out of the submission pack.

What items typically appear in an MOC?

Downgrades in asset classification with the consequent additional provisioning, reversal of interest or other income recognised on accounts identified as NPA, corrections to figures in the branch returns (arithmetic errors, unreconciled entries, wrong head classification), and divergence in security valuation affecting provisioning. Banks often prescribe monetary cut-offs per item in the closing circular, so trivial differences may be reported in aggregate or omitted per those instructions.

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