Audit · Concurrent

Concurrent Audit Services that catch issues before they compound.

Real-time, transaction-level audit of branch operations, financial transactions, and business processes — identifying irregularities, compliance gaps, and control failures as they occur, not months later.

Concurrent audit is a system of real-time audit where transactions are reviewed and tested as they occur — or within a very short window after they occur — rather than at the end of a period. It was developed for the banking sector, where the volume, value, and risk of daily transactions demand a more continuous form of assurance than a periodic internal audit can provide. Today, it is also widely used by large NBFCs, trading companies, manufacturing businesses, and any organisation where transaction risk requires near real-time oversight.

Unlike an internal audit that reviews a period in hindsight, concurrent audit catches errors and irregularities while they are still fresh and before they compound into material issues. A concurrent auditor who reviews yesterday's transactions can flag a suspicious payment before it clears, identify a documentation gap before the borrower's file is closed, or spot a limit breach before it creates a regulatory exposure.

NDS Advisors provides concurrent audit services for branches of banks, NBFCs, and large corporate entities — with a team structure and reporting cadence calibrated to your transaction volumes and risk profile. Our concurrent audit reports are delivered at the frequency your management and regulators require.

Our Concurrent Audit Services Services

Bank Branch Concurrent Audit

Transaction-level audit of bank branch operations — covering credit, advances, deposits, remittances, KYC compliance, and regulatory reporting.

NBFC Concurrent Audit

Concurrent audit of NBFC lending operations — reviewing loan disbursements, collections, documentation compliance, and RBI regulatory requirements.

Revenue & Billing Concurrent Audit

Real-time review of revenue recognition, billing, and collection processes for large corporate businesses with high transaction volumes.

Procurement & Payments Concurrent Audit

Concurrent review of purchase orders, vendor invoices, payment approvals, and disbursements — detecting irregularities at the transaction level.

Credit Appraisal & Documentation Review

Review of credit appraisal quality, loan documentation completeness, and security perfection for banks and NBFCs at the point of sanction.

Advances Portfolio Review

Review of the advances portfolio for classification accuracy, provisioning adequacy, and early warning indicators of stress.

Concurrent Audit Reporting

Preparation of concurrent audit reports in the format required by RBI, the entity's internal audit committee, or management — at daily, weekly, or monthly frequency.

Irregularity Escalation Framework

Design of escalation procedures for concurrent audit findings — ensuring material irregularities reach the right level of management without delay.

Our Process

Scope & Frequency Agreement

Defining the transactions, processes, and branches to be covered — and agreeing on the audit frequency, reporting format, and escalation procedures.

Transaction Selection

Selecting transactions for review on a risk-based basis — covering high-value items, new relationships, exception reports, and compliance-sensitive transactions.

Real-Time Review

Transaction-by-transaction review against applicable policies, limits, documentation requirements, and regulatory norms — with immediate flagging of irregularities.

Concurrent Audit Report

Compilation of findings into the concurrent audit report — categorised by severity, with root cause and management action required for each observation.

Follow-Up & Closure

Tracking of management responses to concurrent audit findings and confirmation of closure — ensuring irregularities do not remain open without resolution.

Why It Matters

✓Detects errors and fraud in real time, not retrospectively

✓Satisfies RBI concurrent audit requirements for banks and NBFCs

✓Reduces accumulation of undetected irregularities over time

✓Provides management with near real-time control assurance

✓Identifies documentation gaps before files are closed

✓Deters misconduct through visible continuous oversight

✓Supports regulatory compliance and inspection readiness

✓Provides a structured escalation path for material findings

Frequently Asked Questions

Concurrent audit reviews transactions as they occur — typically daily or within days of the transaction. Internal audit reviews transactions retrospectively — typically monthly, quarterly, or annually. Concurrent audit catches errors and irregularities while they are still correctable; internal audit identifies systemic issues and control gaps. Both are complementary, not substitutes.

Yes. RBI guidelines require banks to conduct concurrent audit of branches above a specified business size — typically branches with aggregate advances or deposits above prescribed thresholds. The scope, coverage, and reporting requirements are detailed in RBI's master directions on internal audit and risk-based supervision. Non-compliance with concurrent audit requirements is a regulatory finding.

A typical bank branch concurrent audit covers deposit account opening and KYC compliance, new advances and loan documentation, disbursements and drawdowns, large value transactions, remittances and foreign exchange transactions, government business, and compliance with interest rate and service charge schedules. The coverage is tailored to the branch's business profile and risk categorisation.

Frequency depends on the entity's requirements and transaction volumes. Bank branch concurrent audit reports are typically submitted monthly to the audit committee and management. For high-volume branches or businesses, weekly or fortnightly reports may be required. Material irregularities are escalated immediately, regardless of the regular reporting cycle.

Yes. With access to the entity's core banking system, ERP, or transaction records, much of the concurrent audit review can be conducted off-site using system reports and exception data. Physical presence is typically required for documentation review, credit file inspection, and cash or physical verification. We design the engagement to balance remote and on-site coverage based on the branch's risk profile.

A concurrent audit report should contain the period covered, branches and transactions reviewed, a summary of key findings categorised by severity (major, minor, advisory), specific transaction-level observations with details, management action required, and a status update on prior period findings. The format is typically prescribed by the entity's internal audit policy or, for banks, by RBI guidelines.

Catch issues in real time — before they cost you.

Talk to our concurrent audit team about branch coverage, reporting frequency, and concurrent audit programme design for your organisation.