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Ethical Standards Board
The Institute of Chartered Accountants of India
9th April, 2023


Re.: Acceptance of certain assignments by the Concurrent Auditor of Bank Branches

The members have sought guidance from the Institute on the matter of acceptance of certain assignments by the Concurrent Auditor of Bank Branches. In this regard, the matters are clarified hereunder: –

Long form Audit Report (LFAR)

Members may take note of the following FAQ under “FAQs relating to professional ethics of members pertaining to Bank Assignments” appearing at the website of the ICAI  at :-

  • Q. 13 Whether the Concurrent Auditor of a Branch of a Bank can undertake the assignment of LFAR of the same Branch?
  • A. The concurrent Auditor of a Branch can undertake the assignment of LFAR only with respect to Branches which are not subject to Statutory Audit. With respect to Branches which are subject to Statutory Audit, the LFAR assignment shall be undertaken by the Statutory Auditor.

Miscellaneous Certification

The concurrent auditor/Internal Auditor may undertake the assignment of certification for a Bank branch only if the certificates are addressed to the Bank’s management i.e not addressed to the statutory auditor/a regulator/ without being addressed to anyone in particular.

Certification of audited financial statements

The Concurrent Auditor/ Internal Auditor can neither perform Statutory Audit of the financial statements of a Bank Branch , nor certify them as audited financial statements.

The members are required to take note of the above and comply accordingly.

Ethical Standards Board

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