Internal Audit
An internal auditor goes to a branch with a one-week visit plan along with a checklist to ensure the compliance of rules and regulations. The auditor examines different aspects on financial management, rules of business and accounts and administration. The auditor reports on 100% checking of loan portfolio. He also reports on 100% checking on loan and savings balancing (reconcile the balance with collection sheet) and program-wise reporting and reports on passbook verification of at least 100 passbooks of 12 center done by the concerned FO, etc. Besides, he reports on fund management concerning cash and bank.
The audited reports are submitted to the Chief Executive. These are discussed in meetings at higher level and asked for clarifications, if there is any anomaly.
Punitive and corrective measures are taken where necessary. The findings of the auditing guide help the management in taking right decisions for modifying policies, systems and procedures.
External Audit
The organization conducts annual audit regularly every year. Reputed audit firms in the country are hired for external auditing. Audit firms are appointed by the General Body.