Banks with assets of more than Rs 15,000 crore must hire two auditors
PrintListen to this Article
“For entities with asset size of ₹15,000 crore and above as at the end of previous year, the statutory audit should be conducted under joint audit of a minimum of two audit firms,” RBI said.
Any bank with a balance sheet of less than Rs 15,000 crore can have one statutory auditor. However, in all cases, concurrent auditors cannot be appointed as statutory auditors.
“It shall be ensured that joint auditors of the entity do not have any common partners and they are not under the same network of audit firms,” the central bank said in its guidelines on auditors.
The banks will have to decide on the number of auditors based on a board approved policy, taking into account relevant factors such as the “size and spread of assets, accounting and administrative units, complexity of transactions, level of computerisation, availability of other independent audit inputs, identified risks in financial reporting, etc”.
“All other entities can appoint minimum of one auditor firm for conducting statutory audit,” RBI said.
For a balance sheet of up to Rs 5 trillion, there can be a maximum of four auditors, between Rs 5 trillion and Rs 10 trillion six auditors can be appointed, eight auditors can be appointed up to Rs 20 trillion, and above Rs 20 trillion, up to 12 auditors can be appointed.
To protect the independence of the auditors/audit firms, entities will have to appoint the SCAs/SAs for a continuous period of three years, RBI said. Banks, if they have to remove an auditor during that period, can do that with the prior approval of RBI.
“An audit firm would not be eligible for reappointment in the same entity for six years (two tenures) after completion of full or part of one term of the audit tenure. However, audit firms can continue to undertake statutory audit of other entities,” the RBI said.
One audit firm can concurrently take up statutory audit of a maximum of four commercial banks, including not more than one public sector bank or one all India financial institution (Nabard, SIDBI, NHB, EXIM Bank) or RBI, eight UCBs, and eight NBFCs during a particular year, subject to compliance with required eligibility criteria and other conditions for each entity, the central bank said.
The audit firms will have to apply before July 31 of the reference year and the public sector banks (PSBs) shall approach RBI within one month of receipt of list of eligible audit firms from the central bank. #casansaar (Source - Business standard)
Category : Banking | Comments : 0 | Hits : 1292
The Financial Intelligence Unit-India (FIU-IND), in furtherance of the powers conferred upon the Director FIU-IND under Section 13(2)(d) of the Prevention of Money Laundering Act (PMLA), 2002, has imposed a monetary penalty of Rs. 5,49,00,000 (rupees five crore forty nine lakh) on Paytm Payments Bank Ltd with reference to the violations of its obligations under the PMLA read with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (PML Rules) issued thereunder and applicable ...
The government on Monday informed the Lok Sabha that all Scheduled Commercial Banks have written off nearly Rs 10.6 lakh crore in the last 5 years, out of which nearly 50 per cent belong to large industrial houses. It also said that nearly 2300 borrowers, each having a loan amount of Rs 5 crore or more, wilfully defaulted around Rs 2 lakh crore. As per the Reserve Bank of India (RBI) guidelines and policy approved by bank boards, NPAs, including those in respect of which full provisioning has...
The government has cleared the extension of tenure of managing directors of two public sector lenders -- Bank of Maharashtra (BoM) and Central Bank of India. According to sources, Appointments Committee of the Cabinet (ACC) has approved extension of term of office of A S Rajeev, MD and CEO of BoM, for six months till his superannuation. Besides, sources said, ACC has extended the term of M V Rao, MD and CEO of Central Bank of India, till July 31, 2025.
The Central Bureau of Investigation (CBI) has started probe into the multi-crore banking fraud in which a former Punjab National Bank (PNB) employee, M.P. Rijil, allegedly swindled ?21 crore from multiple bank accounts, including the eight accounts maintained by the Kozhikode Corporation. The case is being investigated by the Kochi unit of the CBI in compliance with an earlier order issued by the Kerala High Court. The case, which was initially investigated by the Kozhikode Town poli...
The Enforcement Directorate (ED) on Saturday arrested two promoters of a Chandigarh-based pharma company, who are also the co-founders of the Sonepat-based Ashoka University, and a chartered accountant in a money-laundering probe linked to an alleged bank fraud. Official sources said the central agency also continued with its searches against the group for the second day, including at the Ashoka University's corporate and registered offices in Delhi and campus in Sonepat. Parabolic Dru...
Comments