Nirav Modi PNB fraud: How bank auditors failed to detect scam in 6 years

The problem here is that internal auditors are good at accounts, but they are not trained to track foreign exchange transactions

Auditors are facing questions as to how the fraud at Punjab National Bank (PNB) went on for six years and how they failed to detect it.

The process seems foolproof. A branch such as Mumbai’s Brady House, which is a corporate-focused one, is headed by a branch manager who holds the rank of an assistant general manager. In such branches, a senior official is designated as ‘concurrent auditor’, who tracks all the transactions of the branch and at the end of the day generates an audit report. This report can be opened only by the branch manager in a specified