Download Guidance Note on Audit of Banks for 2015

The annual statutory bank and bank branch audits for FY 2014-15 are fast approaching.  It, therefore, gives me immense pleasure to inform you that the Auditing & Assurance Standards Board of ICAI has issued the 2015 Guidance Note on Audit of Banks.

The Guidance Note provides an insight into the banking industry in India and how they carry out their day to day functions. It also discusses in depth the various important items on the financial statements of a bank, its peculiarities, manner of disclosure in the financial statements, the RBI prudential directions thereon, audit procedures, etc.  Similarly, the Guidance Note has Chapters on audit procedures for reporting on long form audit reports for banks and bank branches, reporting under Ghosh and Jilani Committee requirements, special purpose reports and certificates, etc. Importantly, the audit procedures are based on the principles enunciated in the Standards on Auditing.

The Guidance Note, inter alia, has been updated for the impact of RBI Master Circulars issued in 2014, Basel III, service tax requirements, etc.  Importantly, the auditors of the banking companies, in addition to the reporting requirements under the Banking Regulation Act, 1949, would also need to report pursuant to section 143 of the Companies Act, 2013. The auditors would accordingly need to amend their audit engagement letters and the auditor’s report. Illustrative formats of an engagement letter and an auditor’s report for a banking company, meeting the requirements of the Banking Regulation Act, 1949 as well as the Companies Act, 2013, have also been given in the Appendices given in the CD.  Similarly, an updated bank branch audit programme for 2014-15 audits is also given.

The full text of the 2015 Guidance Note on Audit of Banks and the contents of the accompanying CD (Appendices etc) are available on ICAI’s website www.icai.org and can be downloaded free of charge from URL


The Guidance Note will also soon be available in the printed book form at the ICAI’s sales counters near you.

I am sure that you will find the Guidance Note useful companion in your bank/ bank branch audit assignments.  In case you have any suggestions in respect of the Guidance Note, please feel free to send them at aasb@icai.in .

Warm regards,

Auditing & Assurance Standards Board
The Institute of Chartered Accountants of India

Categories: CA, CS, CMA

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