PD/A-111A/2010, Dated: 18th February, 2010

Dear Colleagues,

As Chairman, Professional Development Committee, I am receiving a lot of queries/inquiries from not only the members but also the Council Members of the Institute; I felt it expedient to apprise you of the procedure being adopted this year for allotment of branch statutory auditors of public sector banks for the year 2009-10.

Out of the 26 public sector banks, 15 banks have opted for managerial autonomy in the matter of appointment of auditors i.e. they will be appointing the auditors on their own, directly from the panel received from Reserve Bank of India.  The name of these 15 banks is as follows:

  1. State Bank of India
  2. Allahabad Bank
  3. Bank of India
  4. Bank of Baroda
  5. Canara Bank
  6. Central Bank of India
  7. Indian Overseas Bank
  8. Oriental Bank of Commerce
  9. Syndicate Bank
  10. Punjab National Bank
  11. UCO Bank
  12. Union Bank of India
  13. Andhra Bank
  14. Punjab & Sind Bank
  15. Bank of Maharashtra

After allotment by these banks, RBI will allocate auditors to balance 11 public sector banks which have not exercised managerial autonomy in the matter of appointment of auditors; the list of which is as follows:

  1. Corporation Bank
  2. Dena Bank
  3. Indian Bank
  4. United Bank of India
  5. Vijaya Bank
  6. State Bank of Bikaner & Jaipur
  7. State Bank of Hyderabad
  8. State Bank of Indore
  9. State Bank of Mysore
  10. State Bank of Patiala
  11. State Bank of Travancore

This entire process is expected to be completed by 1st week of March, 2010.

Moreover, I would like to bring to your kind attention that this year, offer letters have also been sent to those chartered accountants firms who are already associated with the same bank as internal auditor for appointment as statutory auditors. As per the directions of RBI, firms associated with internal assignment in the bank have to relinquish the internal assignment before accepting the statutory audit assignment during the year.

In this regard, I may invite your attention to the Code of Ethics Section 290 “Independence – Assurance Engagements”:

“A statutory auditor of an entity can not be it’s internal auditor as it will not be possible for him to give an independent and objective opinion (Para 173)”

Specifically, attention is also drawn to Para 3.4.9 of the Guidance Note on Independence of Auditors –

“A member must take care to see that he does not get into situations where there could be a conflict of interest and duty. ………….Attention of the members is drawn to the audit assignments where appointment is done by the Comptroller & Auditor General of India (C&AG), Reserve Bank of India (RBI) and such other authorities.  In addition to ensuring independence during the assignment, it is also essential to avoid any situation in near future which may be interpreted as a threat to independence, as for example, he or any other partner of his firm should not accept any other assignment such as internal audit, system audit and management consultancy service within one year from the completion of audit assignment”.

Therefore, if a member accepts the statutory audit of the bank in which he was an Internal Auditor in the same financial year, he would be violating the Code of Ethics.

The issue is already under consideration with RBI.

Apart from above, I may inform that the attached FAQs also being hosted on the ICAI website for the ready reference of the members at large. Further, I may state that the abovesaid procedure is only in respect of branch statutory audits; as far as central statutory audits are concerned, all banks are already exercising autonomy for the purpose.

With warm regards,

Professional Development Committee

RAJU SHAH

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0 responses to “Procedure for allotment of Statutory Bank Branch Audit for FY 2010-2011”

  1. CA S.B.Shah says:

    dear sir

    I was statutory auditor of the SBI for the five years but in last year i was not alloted any statutory audit so in this year i want to countinue in the same bank whether it is possible or not ? Same bank can be repeated after one year break?

  2. M.S. SHAH says:

    SIR, MY MEF NO.12590. I WAN”T TO KNOW ABOUT ALLOTMENT OF BANK BRANCH AUDIT ALLOTED ?

  3. CA Hitesh Chauhan says:

    Sir,

    I am running my Proprietory concern and i am also partner in one firm. We are receiving Statutory Bank Branch audit in Partnership firm.

    Can i apply Statutory Bank Branch Audit in Proprietory Concern.
    also completed 3 year after establishment of proprietory concern

    Thanks,

  4. CA Sunil P Agrawal says:

    Sir I am Qualified in Jan, 2005, I am FCA, DISA Qualified and I am in Category IV SP from last 3 years , but still i have not got any Statutory Bank Branch Audit Assignment . Why Soo. can you help me out ?

  5. GREEN & COMPANY says:

    Sir, Which branch has been allotted to us, how can we know, whom to contact,

    B. C. Mitra(FCA)
    033-2440 4775

  6. OMKAR says:

    whether Revenue Auditor can be a Statutory auditor?

  7. CA. H.N.YADAV says:

    sir how we know that RBI SENT OUR FIRM NAME TO WHICH BANK FOR EMPANELMENT FOR BANK AUDIT.

    H.N. YADAV(FCA)
    09435130337

  8. NARENDRA TOSHNIWAL says:

    Sir, How I know that RBI sent my name to which bank for empanelment for bank branch audit

  9. pawan singhal says:

    sir how we know that RBI SENT OUR FIRM NAME TO WHICH BANK FOR EMPANELMENT FOR BANK AUDIT.

    • NARENDRA TOSHNIWAL says:

      Sir My MEF NO. is 05624 and UC No. is 005698 kindly reply me urgently In which bank rbi sent my name for branch branch audit

      • ARUN AUMAR ALUNI says:

        Sir My MEF NO. is 37196 and UC No. is 780956 for KUMAR & KUMAR kindly reply me urgently In which bank rbi sent my name for branch branch audit

  10. SUMAT K. JAIN & CO. JHANSI says:

    MEF NO.MEF07090, UNIQUE CODE NO.991902, FIRM REGT, NO. 05492C
    SUMAT K. JAIN & CO. JHANSI

    WHICH BANK HAS ALLOTTED, HOW TO KNOW, WHOM TO CONTACT,
    09839922663
    09415030132

  11. SUMAT K. JAIN & CO. JHANSI says:

    Sir, Which bank has been allotted to us, how can we know, whom to contact,

    Sumat Kumar Jain (FCA)
    09839922663
    09415030132

  12. N. N. Das & Co. says:

    Our status is Category I, Unique Code No. 070590, MEF03173. We are not getting any bank branch audit after 31.3.2008,when we audited branches of Bank of India, Kolkata. We have contacted a number of bank branches of Kolkata but have been informed that our firm name has not been included in RBI approved list. Unable to find out the reason since we are not aware of the basis of the allotment. An immediate reply will be much appreciated.
    Regards,
    S. Ghosal
    Partner

  13. sonal says:

    how to find out which bank has assigned which auditor????

  14. priya says:

    sir
    FOR THE F Y 2010-2011 CAN PERSON BE A STATUTORY BANK AUDITOR FOR MORE THAN ONE BANK

    • D.R. Sastry,FCA says:

      Not Possible as assignments are to be vetted by RBI, you can not accepts multiple appointments from various PSU Banks.

      But you can try the Private Sector Bank Audits, for which there is no limit

      D.R.Sastry,FCA
      drsaca1@gmail.com

  15. CA Rajeev says:

    Sir,
    The name of our firm of Category II was sent by RBI to United Bank of India for Branch audit allotment on retirement from Central bank of India after 5 years. However, United Bank of India has failed to allot any branches to our firm on pretext of not having many branches in U.P. where our firm is situated. Does RBI not having pre information regarding the location of branches of a bank before sending name of the auditors.

  16. CA G. ANAND says:

    Sir, I think that a statutory branch auditor can do limited review audit of the same branch if he is appointed as external auditor for limited review audit. Moreover limited review audit is itself part of statutory audit.

  17. CA.SUBHASHCHANDRAPODDER says:

    NO OTHER COMMENT ON YHE SUBJECT LINE , OUR LEADER CA RAJU SHAH ON BEHALF OF PROFESSIONAL DEVELOPMENT COMMITTEE MENTIONED/ CLARIFIED ALL THE MATTER MENTIONED IN SUBJECT LINE , UNDER THE LEADER SHIP OF CA.AMORJIT CHOPRA, HIS DEPUTY CA SHAH, ENTIRE COUNCIL MEMBERS, PAST PRESIDENTS, RESPONSIBLE MEMBERS, INCLUDING ALL REGIONALCOUNCILS OF I.CA.I,
    QUESTION LIKE CA BALAM, SHOLD NOT BE RAISED .HE SHOULD KNOW OUR CODE OF ETHICS.

  18. CA.SUBHASHCHANDRAPODDER says:

    you are tring your level best , for the benefit of ca pwariver, and fighting/ negotiating with the R.BI, C.AG. FINANCE MINISTY , ETC.NOT FOR THE COUNCIL MEMBERS ONLY, LOOKINK INTO ALL CA FATERNITY, AS WELL AS FOR THE PULIC AT LARGE, THOSE WHO REALY TRUST US ( THE INSTITUTE OF CHARTERED ACCOUNTANTS ), ARE YOU THE AUTHORITY TO ALLOT THE AUDIT/? member should under stand the real cause of illness,
    well done. GO AHEAD.

  19. CA Balan says:

    Sir,can a concurrent auditor do a limited review audit of same Bank branch?

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