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How will you vouch and/or verify the following:...

How will you vouch and/or verify the following: Borrowing from Banks.

How will you vouch and/or verify the following: Borrowing from Banks.

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Chiranjibi Aug. 27, 2018

You can check the following points to verify the borrowings from bank:

  • Reconcile the Balance of accounts i.e Overdraft or loan account with certificate of Balance Confirmation provided by the bank at the year end.
  • Verify whether it is registered with the Registrar of Companies and recorded in register of charge by obtaining a Certificate of security showings details of security deposited with banks like assets.
  • Check Proper Authorization is taken for the borrowings from the Bank, like in case of company Board of Director has authority.
  • In case of company, whether maximum amount of loan that company raise not contravened. as per section 180 of the companies act, 2013 Restrictions on powers of Board .
  • Check purpose of the loan, i.e loan is utilized and not prejudicial to the entity.


How will you vouch and/or verify the following: Borrowing from Banks.

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