Public Sector Banks get autonomy to appoint Auditors
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The government said public sector banks (PSBs) will get autonomy in selection and appointment of their Statutory Central Auditors (SCAs).
"The work of selection and appointment of SCAs henceforth, has been delegated to individual PSBs for the year 2014-15 onwards," the finance ministry said in a statement today.
The Reserve Bank of India (RBI) will provide the selection criteria for selecting SCAs to PSBs. The office of Comptroller & Auditor General (CAG) will provide the list of eligible auditors available with them and PSBs can make selection out of the list with the prior approval of RBI.
Currently, auditors are being appointed by a panel headed by Additional Secretary of Department of Financial Services, Chairman Indian Banks' Association (IBA) and representative of CAG. So, there is no representation from the bank.
The number of statutory auditors varies depending based on the size of the balance sheet of a bank. For example, State Bank of India had 14 statutory auditors for 2013-14, while Punjab National Bank had six and United Bank of India had four.
According to officials, the purpose behind changing the criteria was to have a smooth audit and give autonomy to banks as currently they are facing some issues with the auditors.
Category : Auditing | Comments : 4 | Hits : 1720
Comments
CASANSAAR
29-Nov-2014 , 09:22:00 pmHI CA ISTITUTE COUNCIL MEMBERS ARE YOU SLEEPING ? WHAT ABOUT YOUR LONG REPRESENTATION TO FINANCE MINISTER ? ARE INTRERESTED ONLY YOUR POCKET MONEY ?WHAT DEPOSITS OF POOR PEOPLE IN THE BANK ? READ RBI RAJAN MESSAGE 'THE BABUS AND CMD ALONG WITH OBIDENT AUDITORS TO CONCEAL NPA AND FRAUD . ALL MEMBERS TO RAISE THEIR OBJECTIONS OF THIS KIND OF APPOINTMENT OF AUDITORS . LET THE APPOINMENT BY RBI ON
CA.Subhash Chandra Podder
01-Dec-2014 , 07:45:15 amRBI Gov. Dr. Raghuram Rajan , rightly Commented that " The Babus and CMD along with Obedient Auditors to conceal NPA and Fraud" , Our Institut"s Babus and Netas do not have any voice over the matters , besides auditors are not doing proper audit. CA. Subhash Chandra Podder, FCA Kolkata 01/12/2014
CA.Subhash Chandra Podder
01-Dec-2014 , 07:55:26 amCA. Institute's Netas are sleeping ? what is their role ? To addressing in the conferences that so much members ( 2.30 Lakhs ) and 8.80 Lakhs students , second largest body of accounting and auditing , and other services . Lots of opportunities are coming ( Huge . Bank audit is nothing a yearly BONUS to auditor .
CA.VEERENDRA MURASHILLIN
08-Dec-2014 , 06:45:13 pmwill the auditor is having independence in such cases? RBI SHOULD BE REGULATORY AUTHORITY FOR APPOINTMENT OF AUDITORS OF BANKS.STAND IS NOT CLEAR IN CASE OF SBAs. CA.VEERENDRA.MURASHILLIN. HUBLI