TA-TA BYE-BYE Bank Audits

A worst situation has emerged for the Bank audit 2012 assignments. It seems that there will not be Branch Bank Audits for category III & Category IV firms this year. The RBI has diluted its stand but still gunning for 30 Crore & 50 Crore norms for Branch Audit.

The reliable source claims that the RBI directions have been kept in wrap from the council. There was no discussion on the subject in the council. It was only recently that the council has gone through the on going tussle/settlement between the RBI and ICAI. In the last few months our profession is virtually bending on its knees. It seems the process is continuing and no one is giving any kind of challenge.

Where are those, who are responsible to challenge such developments? Probably all are busy with the 12th elections. This kind of thinking is detrimental to our lives, for when we constantly blame other people or outside situations for what is happening to us, we do nothing ourselves to change it! Like a pendulum endlessly swinging back and forth, or a lone rock resting on a mountainside, we continue to act and exist in the same pattern. The scene will be worst from next year, when the appointing authority shall be the Central Auditor. Every one is aware that there a deadly caucus which ruled the Central Bank Audit assignments.

From so many years the norms of appointing Central auditor have not been changed. The appointment of central auditor is based on the influential source for the firms. Every year to become a Central Auditor, it requires backing of the senior officials from the north block. Now these central auditors shall rule the new system. We are not transparent in our deeds and in future the upcoming scene shall surely kill the profession. Bank audit allotment confers professional opportunities and pecuniary benefits to CA’s and therefore need for transparency.

The member of this profession has a right to know every act, everything that is done in a way, by their functionaries. To cover with veil of secrecy, the common routine activity is not in the interest of the Institute. In a profession of responsibility like ours, where all must be responsible for their conduct, there can be but few secrets. Now the need of the hour that ICAI should take back its empanelment in full and further make some rules that the appointment of the branch auditors can not be done by the central auditor.

To sum it up: Bank audit is history, tomorrow is a mystery, but today is a gift... so enjoy the present.