BoB to appoint Accounting Firm to review compliance, says new MD
PrintListen to this Article
The bank said it is undertaking a “comprehensive review to identify deficiencies in the structure, processes and systems” in order to prevent recurrence of such an incident. PS Jayakumar, BoB’s new MD & CEO, said, “My utmost priority is to examine the current situation and bring about the necessary changes within the bank to ensure such unfortunate incidents do not recur.
This will include the appointment of an external accounting firm for full review of our KYC norms and its effectiveness across all branches.” “I am deeply committed to resolving this issue and seek the support of all stakeholders during this period,” he said after taking charge on Tuesday, two months after his selection as the MD and CEO. The bank will make a detailed presentation to the audit committee within a week.
“The bank and its board of directors are deeply distressed by this incident and take an extremely serious view of the matter. The bank is undertaking a comprehensive review to identify deficiencies in the structure, processes and systems, with a view to prevent recurrence of such an incident,” said Jayakumar, who was earlier co-founder and CEO of VBHC Value Budget Housing. BoB admitted systemic failures in its operations.
“There are many unanswered questions which continue to be probed, such as opening of current accounts in spite of inconclusive KYC process in some cases, individual failure of detection of irregularities, non-follow up of system alerts to track exceptional transactions and reasons for the long lead time to identify these irregularities,” the bank said. “We have taken swift action, including suspension of five officers and change in the concurrent auditor firm of the specific branch.
The Department of Financial Services was immediately informed about the same, post which the concerned investigation agencies — CBI and the Enforcement Directorate — were approached to conduct a detailed probe of this matter,” BoB said. The bank is getting a full-time CEO after almost 14 months. After SS Mundra who joined the Reserve Bank as the Deputy Governor, the bank has been functioning without a full-time CEO since August 2014. (Indian Express)
Category : Auditing | Comments : 0 | Hits : 776
In a boost to the National Financial Reporting Authority (NFRA), the regulator for auditors and audit firms dealing with large and listed companies, the Supreme Court has upheld an order by the National Company Law Appellate Tribunal (NCLAT) related to disciplinary action against errant auditors. Last month, the apex court dismissed an appeal filed by chartered accountant Sam Varghese, partner at K Varghese & Co. Varghese was one of the four auditors against whom NFRA had acted, and in...
Hindustan Unilever Ltd. has announced that its cost auditor has been disqualified from continuing amid a conflict of interest. The decision was made after it was discovered that Rasesh Vipin Chokshi, who is a partner at the firm R.A. & Co., was holding shares in the company. According to the Companies Act, 2013, a cost auditor cannot hold any shares in the company for which they're auditing the costs. Following this violation, M/S R.A. & Co. has been asked to vac...
The Bombay High Court has granted bail to Anita Kirdat, a former concurrent auditor of the Punjab and Maharashtra Cooperative (PMC) Bank, in connection with a multi-crore loan fraud case. Kirdat, 48, a chartered accountant (CA) from Bhandup, who runs a firm, Anita Kirdat and Company, was arrested by the Economic Offence Wing of Mumbai Police in 2019 in the PMC Bank scam. She served as the concurrent auditor of PMC Bank from 2005 to 2019. She was alleged to have been appointed at the behest...
Tighter regulations and lower fees are making the auditing profession challenging, said panelists at an international conference held by the National Financial Reporting Authority (NFRA) here on Tuesday. “The business model of pure audit is under significant pressure. It’s getting tighter and tighter from the point of avoiding conflict,” said Uday Kotak, former managing director and CEO of Kotak Mahindra Bank. Stating that regulators would want the best of talent in the audi...
The Comptroller and Auditor General of India (CAG), Girish Chandra Murmu, on Friday announced the setting up of the Supreme Audit Institution India’s International Centre for Audit of Local Governance (iCAL) in Rajkot, Gujarat. At the conclusion of the three-day international conference on ‘Strengthening of Grass Roots Democracy and Accountability’, Mr. Murmu said local governments played a pivotal role in shaping the lives of citizens. Effective accounting platforms and aud...
Comments