Auditor’s are expected to provide an unbiased and objective opinion on the facts they have examined. Boards and shareholders expect that the Auditor’s opinion must be near precise, however, auditing standards prescribe that auditor’s opinion is reasonable and not absolute as the auditors are never able to scrutinize all accounting and business transactions on a 100% basis. This expectation gap seems to be never narrowing down.
Internal auditors strive to identify audit issues and report them to the Governing bodies/Audit Committees, however, many times such issues are placed on the back burner by the Governing authorities as time elapses and new priorities emerge.
Indian banking system was on fire owing to Non-performing assets and the onset of COVID 2019 would perhaps turn it into a fireball impact on the vulnerable financial services sector in India. It may become increasingly difficult for the RBI to regulate and provide emergency administrative action if large number of vulnerable banks in India go down the hill considering corporate governance failures in our country.
