Long Form Audit Report
Long Form Audit Report (LFAR)
Bank: {{client_name}}
Branch: {{branch_name}} (Code: {{branch_code}}, Category: Urban)
Financial Year ended: {{period_end}}
Date of report: 29 May 2026
This Long Form Audit Report is submitted in the format prescribed by the Reserve Bank of India under the LFAR — Statutory Branch Auditors guidelines.
PART A — General
1. Assets
1.1 Cash
- Does the branch generally carry cash balances which vary significantly from the limits fixed by the Controlling Authorities of the Bank? If yes, give comments.
- Does the branch hold adequate insurance cover for cash-on-hand and cash-in-transit?
- Is cash maintained in effective joint custody of two or more officials?
- Have the cash balances at the year-end been verified by the auditor? Were any discrepancies observed?
1.2 Balances with Reserve Bank of India, State Bank of India and Other Banks
- Were balances confirmed by RBI / SBI / other banks at the year-end? Were the reconciliation statements reviewed?
- Are there any old or unexplained entries pending in the reconciliation statements? Give particulars of items older than 3 months.
- Have necessary entries been passed to give effect to the reconciliation differences?
1.3 Money at Call and Short Notice
- Has the branch undertaken any transactions in this regard during the year? If so, give particulars of any irregularities.
1.4 Investments
- Are there any investments held by the branch on behalf of Head Office / other branches? If yes, what is the value, and are they physically verified at year-end?
- In respect of investments held by the branch on its own account — verify classification (HTM / AFS / HFT), valuation, and income recognition.
- Are matured / overdue investments held without follow-up? Give particulars.
1.5 Advances
- Provide branch-wise summary of advances: outstanding as at year-end, gross NPAs, net NPAs, NPA percentage, provisions made.
- Does the branch have any large / critical advances accounts? List accounts above the threshold fixed by Head Office.
- Examination of credit appraisal in respect of advances: (a) was credit appraisal at branch level adequate, (b) were the terms and conditions of sanction properly complied with, (c) were any major shortcomings observed.
- Documentation of advances: Were all required documents executed / renewed within the prescribed period? List exceptions.
- Review/renewal of advances: Were the advances reviewed / renewed within the periodicity prescribed by RBI / Head Office? List exceptions.
- Stock / book debt statements obtained at prescribed periodicity (typically monthly). Were stock statements analysed and drawing power computed correctly?
- Verification of securities (charge creation, CERSAI registration, insurance, valuation reports for collaterals).
- IRAC classification: Were there any accounts which the auditor classifies differently from the branch / system classification? Give detailed reasons.
- Provisions: Adequacy of provisions on Standard, Sub-Standard, Doubtful, Loss assets. Quantum of any additional provision proposed via MOC.
- Income recognition: Reversal of interest on NPAs; identification of subsidies / restructuring benefits.
- Suit-filed accounts, recovery proceedings, legal action — status update.
- Compromise settlements (OTS), restructured accounts, write-offs during the year — list and confirm RBI/Head-Office compliance.
1.6 Other Assets — Stationery, Stamps, Suspense
- Are unused security forms / cheque books / DDs / PO leaves properly accounted for and physically verified?
- Are there any old / unreconciled entries in Suspense / Sundry Receivable accounts? Give particulars of items older than 6 months.
2. Liabilities
2.1 Deposits
- Sample verification of customer balances by direct confirmation / inspection of pass-books, fixed-deposit receipts.
- Term deposits — overdue / matured but unclaimed deposits classified per RBI norms; DEAF transfers verified.
- Are dormant / inoperative accounts properly identified and segregated?
- TDS on interest on term deposits — correctness of deduction (Section 194A) and Form 15G/15H processing.
2.2 Other Liabilities
- Bills Payable, Inter-Office Adjustments, Sundries — old / pending entries reviewed.
- Provisions for staff retirement benefits — confirmation from Head Office on actuarial valuation impact at branch level.
2.3 Contingent Liabilities
- Outstanding Letters of Credit (LCs), Bank Guarantees (BGs), forward exchange contracts, acceptances — properly disclosed.
- Branch records (LC register, BG register) reconciled with the general ledger.
- Has the branch invoked any guarantees during the year? Recovery efforts and provisioning.
3. Profit and Loss Account
- Interest income — accrual basis except for NPAs; reversals on classification.
- Other income — commission, exchange, brokerage — accounted on actual realisation.
- Operating expenses — significant variances from prior year analysed.
- Provisions — IRAC, investment depreciation, country risk, standard asset provisions.
PART B — Specialised Activities at the Branch
4. Foreign Exchange (only if AD-Category branch)
- Is the branch authorised dealer in foreign exchange? If yes, of which category (AD-I / AD-II / AD-III)?
- Compliance with FEMA, 1999, the FEMA Regulations and RBI Master Directions on FEMA.
- NOSTRO / VOSTRO reconciliations — open entries older than 3 months listed.
- Forward exchange contracts — verification of contracts, mark-to-market valuation, and reversal entries.
- Reporting through FETERS / R-Return / BEF Statement / IDPMS / EDPMS — within prescribed timelines.
- EEFC, RFC and Diamond Dollar accounts maintained per RBI directions.
5. Treasury / Investment Operations
- Does the branch undertake treasury operations on its own account? Give particulars of operations and controls.
- Has the auditor verified compliance with the Investment Policy approved by the Board?
PART C — Other Items
6. Fraud
- Have any frauds been detected at the branch during the year? Give particulars (amount, modus operandi, persons involved, recovery, action taken).
- Was the fraud reported to Head Office / RBI through FMR-1 within the prescribed time?
- Are there any indicators of fraud / serious irregularities not yet classified as fraud?
7. Action Taken on Previous LFAR
Comments on action taken by the branch / Head Office on the observations made in the previous year's LFAR:
- Issues fully addressed / closed during the year.
- Issues partially addressed and still in progress.
- Issues outstanding without action — repeat observations.
8. Other Matters Considered Material
- Any other matter which the auditor considers material and should be brought to the notice of the Statutory Central Auditor / Bank Management / RBI.
For {{firm_name}}
Chartered Accountants
Firm Registration No.: {{firm_registration_no}}
_______________________________
{{engagement_partner}}
Statutory Branch Auditor
Membership No.: {{icai_membership_no}}
UDIN: ____________________
Place: ____________________
Date: 29 May 2026
