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The author have analysed the data of Branches under statutory audit of 25 Nationalised banks for Financial Year 2012-13 and it is observed that branches audited of these nationalised banks were ranged between 28.90% to 67.10%. State Bank of Travancore has got its 67.10% Branches Audited while UCO Banks has got only 28.90% Branches Audited. It is further observed that out of 25 Banks  24 Bank has got less than 50% of the Branches Audited while there are 17 Banks who got even less than 50% Branches Audited.

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1. Graphical Presentation

2. Branchwise Analysis Of Audited/Unaudited Branches Of Nationalised Banks Of India After RBI Guidelines In 2012-13 As Compared To 2011-12.

3. Comment by the Author



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  1. Ram says:

    The relevance of Bank Branch Audit was questioned by then RBI Governor D. Subbarao 2 years back in a function organized by ICAI in Mumbai. The point he was making is quite logical. This exercise must add value to the functioning/productivity of the said Branch rather than an avenue of fee income for CAs. After the same is taken up by all PSBs with MoF, Govt. was mulling to scrap the audit all together or proposed to increase the limit with clear indication in the Budget speech. But ICAI’s solid lobby prevailed. With letters of public interest citing prevention of any fraud or misuse of public money blah blah… due to such audits from many MPs Govt. bowed down and kept the status quo.
    As far as NSEL scam is concerned from the day one it was a casino led by all CAs. The involvements of CAs as MD, CEO, as Auditor, as Financial Controller are all there to see. There were scams, there are scams and there will be scams where these professional breeds in some form or other will be present. In the name of Audit and Partner in Nation Building are we not all responsible to let ICAI alone be entrusted with the audit power? Why should Audit profession not be opened up and properly regulated.

  2. ROHAN says:

    NSEL fraud of Rs.6000 crore occurred due to lack of weak provision of External Audit by Regulators. Internal Audit can be conducted with the collusion of management to deceive the general public but not to special persons.
    Moreover, it is interesting to note that Chartered Accountant completes the Audit in 2 days. it is not clear whether they do so on paper or they shows 7 to 10 days on paper.
    Further, under core banking perhaps Primary/Collateral Security of Advance or borrower can be checked and verified on line and there are no ATM Debit/Credit card frauds due to strong core banking.
    See the following news item and Anybody who thinks that there is no need of any Audit due to core banking as it is strong point may submit request quickly to ICAI/RBI so that they could not decrease the limit for Audit

    The Institute of Chartered Accountants of India (ICAI) would like to clarify that the present limit for Statutory Bank Branch Audit is still Rs. 20 crore (of advances) and not Rs. 50 crore as being erroneously reported in some sections of the media. This is to inform that concerted and strategized efforts are being made to convince the Government to reduce the limit to Rs. 6 crore, in public interest.


    Audit on the basis of advances/business is only jugglery just to deceive shareholders/users of financial statement. Auditor is not responsible for only Advances but for entire Branch as he submit LAFR and TAR also
    See the faith of ICIC bank’s branch where External Audit provisions are more weak than Nationalized Banks
    ICICI बैंक के कर्मचारियों ने ही ग्राहकों को ठगा
    आईबीएन-7 | Oct 02, 2013 at 11:23pm | Updated Oct 02, 2013 at 11:34pm
    रांची। झारखंड के गोड्डा में ICICI बैंक में करोड़ों के फर्जीवाड़े की बात सामने आई है। आरोप है कि बैंक के कुछ कर्मचारियों ने गलत तरीके से ग्राहकों के पैसे निकाल लिए। पुलिस ने बैंक के पूर्व मैनेजर, असिस्टेंट अकाउंटेंट समेत पांच लोगों को गिरफ्तार किया है। उधर, बैंक ने सभी आरोपियों के खिलाफ़ कार्रवाई और पुलिस जांच में मदद का भरोसा दिलाया है।
    इसका खुलासा तब हुआ जब कोलकाता के एक व्यापारी दिनेश अग्रवाल ने करीब सवा तीन करोड़ रुपये फ्रॉड की शिकायत दर्ज कराई। उसके बाद कई जमाकर्ताओं ने अपने रकम की पड़ताल की तो उनका रिकॉर्ड गायब पाया। अब तक करीब सात करोड़ फ्रॉड की प्राथमिकी दर्ज की जा चुकी है। यहां तक कि बैंक के कुछ ग्राहकों ने आईसीआईसीआई बैंक की सीईओ चंदा कोचर के खिलाफ भी मामला दर्ज कराया है। सूत्रों की माने तो फ्रॉड की यह रकम कई गुना बढ़ सकती है। लोग आक्रोशित हैं और उन्होंने जिलाधिकारी से मिलकर रुपये वापस करने की मांग भी की है।
    So , there is need to strengthen the Statutory Audit of bank branches and there should be surprise element in such Audits to safeguard the interest of public. Here it is pertinent to note for those readers who says that due to core banking there is no need to Audit every branch that ICICI bank’s branches are under core banking system. Plz give your valuable suggestions

  4. B.S.K.RAO says:

    Now a days if an account holder remits Rs 100/- in the branch of any bank, it will be recorded at head office. In such centralized system of computer accounting, audit of bank branch is a wasteful expenditure for the bank. As far as legal records are concerned, Legal Deptt., Legal Advisers of bank & internal auditors of the bank who really perform the job very well look after it. In this computer era, accounts are maintained in computer & checking correctness of total does not arise. In these circumstance, Deptt. of Economic Affairs should cancel the audit of all bank branches in the interest of all banks. Further, ICAI is only worried about its members only & not about our country as whole.

  5. MANDEEP SINGH says:

    I fully agreed with Mr. Parkash bank audit limit should be 100 crore.
    Now is computer era & every transaction of the bank is online. so for there is no possibility of any error.
    When every filed is depended on computers & minor to minor mistake is find out by computer than there is NO NEED OF AUDIT OF BANKS BY AUDITORS. COMPUTER IS BETTER QUALIFIED AUDITOR.
    I request to the government pl don,t put burden of audits on banks for smoothly working.

  6. sahni says:

    You have data plz get feedback from RBI/CSA AND POST FOR READERS. In my opinion it is not easy in India to take feedback from RBI/CSA.
    There is no issue that audit is conducted on basis of quantum of business
    Why Auditors do not inform in their report that Balance Sheet is certified on basis of 28.9% Audited branches during current year as compared to 64.1% branches during previous year and reason for such huge variation should also be mentioned

  7. sahni says:

    Sir, It is not easy in India to get feed back from RBI/CSA or any other Government department. YOU have data. plz do the noble cause get feedback from RBI/CSA and share it with the community.
    I also did not agree with SP that which is being done in past should be followed in future also. if someone brings new facts that should be taken into consideration. Auditors should disclose in their report % of Audited branches as compared to previous year and reason for variation. It is astonishing that during current year Auditor are certifying the Balance Sheet on the basis of 28.9% branches as against 64.1% branches during last year.

  8. PARKASH ANAND says:

    IF AUDIT IS BEING CONDUCTED ON QUANTUM OF ADVANCES THEN WHAT IS HARM IN TELLING SHAREHODERS/USERS of the financial statements that report is based on 28.9% Audited branches during 2012-13 as compared to 64.1% during 2011-12. why you people are making fool of shareholders/users of financial statements . perhaps you are getting fee on the basis of Advances and not on the basis of business. Coal allocations was also being done in the past as per prevailing past policy and now when scam has piled up then it busted. commenter has absolutely right and he should request the RBI to enhance the branch Audit limit to Rs.100 crore for 2013-14
    I like the analysis very much as Auditor’s report did not inform about % of Audited Branches and thus misleading the public

  9. s p raja says:

    The audit of bank branches is conducted based on the business they are handling and not the no. of branches in a bank.Some other branches with lower quantum of business and/or service branches are also selected on random basis every year to cover all the branches over a period. This criteria is followed up not only during 2012-13 but during earlier years as well. the banks must have followed the business coverage norms during 2012-13 also as hitherto.
    As such , the analysis based on the no of branches covered under statutory audit vis-a vis previous year done by you leads no where.

  10. satyanarayan says:

    it would be more better if feedback from RBI/CSA about the objectivity is analysed. As after all ultimately industry/regulator is better judge of the services rendered.

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