Guidance Note on Audit of Banks 2020 edition
As you all are aware that the Bank Statutory Audit season is just around the corner, We take this opportunity to place in your hands, the Guidance Note on Audit of Banks – 2020 edition, issued by the Auditing and Assurance Standards Board of ICAI.
Over the period technology has changed drastically the way banking industry was operating. The increasing trend of NPAs has cast more responsibilities on auditors while discharging their duties in performing statutory audit of Banks and Bank Branches.
The Guidance Note provides an insight into the banking industry in India. It makes a clear distinction between audit at Branch level and Head office level and also elaborates on general considerations in audit of Banks at Head Office/Branch level. The Guidance Note is updated every year to incorporate the impact of developments that have taken place in the banking sector which require attention of statutory auditors, such as, master directions/circulars of RBI, other relevant circulars issued by RBI, relevant pronouncements of ICAI having bearing on bank audits, amendments/changes in applicable laws or regulations. It is, therefore, essential that the members undertaking statutory audit of banks, both at the branch as well as the central level, keep themselves abreast with the latest developments in the banking sector.
The Guidance given in the Guidance Note is broadly bifurcated into two Sections i.e. Section A – Statutory Central Audit, Section B – Bank Branch Audit. Department wise guidance is given in Section A – Statutory Central Audit viz. Personal Banking and Operations, Retail Banking and Marketing, Wealth Management and Third Party Products, Credit Monitoring and Restructuring, Treasury Operations, Audit of Information Technology and Digital Banking, Long Form Audit Reports Consolidation, etc.
The full text of the Guidance Note on Audit of Banks, 2020 edition and various Appendices like Illustrative formats of engagement letter, illustrative formats of auditor’s report both in case of nationalized banks and banking companies, illustrative formats of management representation letter, the text of master directions, master circulars issued by RBI and other relevant notifications, FAQs and general circulars are available on ICAI’s website www.icai.org and can be downloaded free of charge from the following link :
(Republished with Amendments)