An internal auditor goes to a branch with a one-week visit plan along with a checklist to ensure compliance with rules and regulations. The auditor examines different aspects of financial management, rules of business and accounts, and administration. The auditor reports on 100% checking of the 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 centers 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 a higher level and asked for clarifications if there is an anomaly.
Punitive and corrective measures are taken where necessary. The findings of the auditing guide help the management in taking the right decisions for modifying policies, systems, and procedures.
The organization conducts an annual audits regularly every year. Reputed audit firms in the country are hired for external auditing. Audit firms are appointed by the General Body.