Exposure Draft of Guidance Note on Audit of Banks, 2022 edition

Exposure Draft of Guidance Note on Audit of Banks, 2022 edition issued by the Auditing and Assurance Standards Board

As you may be aware that every year the Auditing and Assurance Standards Board of the ICAI brings out the publication ‘Guidance Note on Audit of Banks’ to provide guidance to the members carrying out audits of banks and bank branches.

This year also, the Board is in the process of bringing out the Guidance Note on Audit of Banks 2022 edition. It may be noted that the Guidance Note contains two sections i.e., Section A – Statutory Central Audit, Section B – Bank Branch Audit.

Readers may note that for the reference and benefit of the members various illustrative formats for Auditor’s Report, Engagement Letter, and Management Representation Letter are given in the Appendices to Section A of the Exposure Draft of Guidance Note on Audit of Banks (2022 Edition) as follows:

Appendix I – Illustrative Format of Report of the Auditor of a Nationalised Bank

Appendix II – Illustrative Format of Report of the Auditor on the Standalone Financial Statements of Banking Company

Appendix III – Illustrative Format of Engagement Letter in case of a Nationalised Bank

Appendix IV – Illustrative Format of Engagement Letter in case of a Nationalised Bank (Separate only for Audit of Internal financial controls over financial reporting)

Appendix V – Illustrative Format of Engagement Letter to be sent to the Appointing Authority of the Banking Company

Appendix VI – Illustrative Format of Engagement Letter to be sent to the Appointing Authority of the Banking Company (Separate only for Audit of Internal Financial Controls under section 143(3)(i) of Companies Act, 2013)

Appendix VII – Illustrative Format of Management Representation Letter to be obtained from Bank Management in case of Statutory Central Audit

Appendix VIII – Illustrative Format of Management Representation Letter to be obtained from Bank Management in connection with the Limited Review

We write this to inform that the Exposure Draft of Guidance Note on Audit of Banks, 2022 edition has been issued by the Board and hosted on ICAI website at the below cited link –

Download Exposure Draft of Guidance Note on Audit of Banks, 2022 edition