Analysis of data of CA Firms Registered with ICAI and as per MEF (Draft Bank Branch Audit Panel) and suggestion to ICAI to increase Bank Branch Audit

Total as on August 15th, 2013

Membership Strength 223390
CA Firms Registered with ICAI (A) 55944
Partnership Firms (a) 16566
Proprietary Firms (b) 39378
Firms as per (MEF) Draft Bank Branch Audit Panel (B) 31024
Partnership Firms (1715+2949+3932) (c) 8596
Proprietary Firms (16822+5606*)                * Ineligible (d) 22428
Difference (A-B) 24920
Partnership Firms (a-c) 7670
Proprietary Firms (b-d) 16950

Can anybody tell about such mismatch of data between ICAI and MEF records?

and

Can user of financial statements/Depositors rely on such Balance Sheets which has been signed by Central Statutory Auditors on the basis of meager number of Audited Branches due to increase in limit from Rs. 5 crore to Rs. 20 Crores by the regulator:-

UCO Bank & Central Bank of India

28.9% only during 2012-13 as against 64.1% during 2011-12 32.1% only during 2012-13 as against 63.8% during 2011-12 Allahabad Bank & Punjab & Sind Bank

33.1% only during 2012-13 as against 70.5% during 2011-12 35.8% only during 2012-13 as against 67.5% during 2011-12 Dena Bank, Vijaya Bank & Union Bank Of India

36.3% only during 2012-13 as against 59.4% during 2011-12 37.2% only during 2012-13 as against 73.2% during 2011-12 39.4% only during 2012-13 as against 68.4% during 2011-12 and so on

Suggestion for ICAI

If ICAI (keeping in view of the above data) may justify to Regulators that minimum Audit of 60% branches is essential for Central Statutory Auditors to sign the Balance Sheet then one may rely on Bank’s financial statements which will be in the interest of Shareholders, Users/Depositors of the respective Banks. Members may observe that even sampling method under Auditing & Assurance Standards of ICAI may not justify such meager number of Audits.

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Data Compiled by :- CA. Anand Parkash (FCA, B.Com)

Presented by:- CA. Ankit Aggarwal (ACA, CS, CMA, DISA, B.Com)

Analyzed by:- CA. Sahil Aggarwal (ACA)

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0 responses to “Analysis of data of CA Firms Registered with ICAI and as per MEF (Draft Bank Branch Audit Panel) and suggestion to ICAI to increase Bank Branch Audit”

  1. Ankur says:

    could you share the source data link for ICAI data ?

  2. CA ANIL MITTAL says:

    WHY THE RBI MAKE IT MANDATORY ONLY ONE BANK BRANCH PER PARTNER AND ONE FOR EACH PROPRIETORSHIP FIRM , IT WILL MAKE AUDITS OF QUALITY AND EQUAL JOB TO CA MEMBERS.

  3. CA Ankush Jain says:

    very good analysis..ICAI should take it with the respective authorities to increase the quality of audit as well lessening the risk of the auditor signing the balance sheet…

  4. Raj Kumar says:

    Dear CA Annad,
    I knows more then ten friends in my circle who are in practice in proprietorship more then twenty years but they are not applying for MEF and some are in partnership and also in Proprietorship and they can apply in one only

  5. Raj Kumar says:

    Dear CA Annad,
    I knows more then ten friends in my circle who are in practice in proprietorship more then twenty years but they are applying for MEF and some are in partnership and also in Proprietorship and they can apply in one only

  6. CA. Subhash Chandra Podder says:

    Thanks for providing the Analysis.
    CA. Subhash Chandra Podder, FCA
    Kolkata
    17/11/2013

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