Bank Branch Audits for the year 2014-15

Dear Sir,

It has come to our notice that Public Sector Banks do put pressure on their branch auditors to complete their audits in the first 7 or 10 days of April itself.  We strongly feel that providing such limited time for completion of audits leads to human errors not only in the decision making but also in the conduct of the audit itself and which may not reflect the true and fair financial position of the banks.

We would like to inform that ICAI vide letter dated 13^th March, 2015 had impressed upon RBI that the auditors should be given adequate time to study the systems and processes prevailing in the bank to compile their reports thereto  till 20^th April, 2015, instead of simply rushing through to meet the deadline given by the banks. Further,  a communication in this regard was also sent to CMDs of all the Public Sector Banks dated 25^th March, 2015 stressing on the fact that auditor should be given adequate time Further, ICAI very strongly impressed the same during the Conference for Central Statutory Auditors which was organised by RBI on 23^rd March, 2015 and 27^th March, 2015 at New Delhi & Mumbai respectively.  Moreover, we had advised the Central Statutory Auditors to use their good offices to ensure that sufficient time is given to bank auditors.      

This instant communication  is to advise you that in case, it is possible for you to complete the assignment in the time limit given by the bank , it  would be appreciable, however, there must not be any compromise on the quality of audit. Auditors should not feel pressurised to complete the audit assignments in a limited time and ensure that these audit serve as value addition.

With kind regards,

Yours sincerely,

(CA Anuj Goyal)

Chairman, Professional Development Committee

Source :- ICAI Mail on Bank Branch Audits for the year 2014-15.