Applicability of the Revised Audit Report Formats (including for bank/ bank branch audit reports) and Reporting in respect of Memorandum of Changes in Bank Audit Reports
- As you would be aware, the Institute of Chartered Accountants of India had pursuant to the issuance of the Revised SA 700, Forming An Opinion and Reporting on Financial Statements, prescribed a revised format of the auditor’s report on financial statements. This revised format was to be effective from the audits relating to the financial year 2011 – 12. However, due to wide spread requests from the membership, at large, the applicability of this revised format was deferred by one year. Accordinglty, I request you to note that the audit reports in respect of audits of financial statements for periods beginning on or after 1st April 2012 are to be issued in this revised format. The text of the revised auditor’s report format appears in the Appendix to the Revised SA 700 and can be downloaded from website of the Institute of Chartered Accountants of India at URL: http://220.227.161.86/17874sa700annx1.pdf .
- FOR THE READY REFERENCE OF MEMBERS CARRYING OUT AUDIT OF BANKS/ BANK BRANCHES, THE AUDITING AND ASSURANCE STANDARDS BOARD OF THE ICAI HAS DEVELOPED RELEVANT AUDIT REPORT FORMATS IN LINE WITH THE REQUIREMENTS OF THE REVISED SA 700. THESE FORMATS ARE ATTACHED WITH THIS MAIL. I MAY, INCIDENTALLY, ALSO MENTION THAT ICAI HAS ALREADY SENT A COMMUNICATION TO RBI REGARDING THESE REVISED AUDIT REPORT FORMATS BEING APPLICABLE FOR AUDITS FOR FY 2012-13 AND ONWARDS.
- Further, members undertaking bank audits are also requested that, pursuant to a recent communication by the Reserve Bank of India to ICAI in this regard, the total number and amount of debits/ credits arising pursuant to the Memorandum of Changes submitted by them, be given under the heading “Other Matters Paragraph” on the face of the audit report/s issued by them. Necessary guidance in this regard is being provided in the 2013 Guidance Note on Audit of Banks which would be issued soon.
I request you to kindly take note of the above matters. An announcement on both the aforementioned issues would also appear in the March 2013 issue of the ICAI’s Journal.
Download Revised Audit Report Formats for bank/ bank branch audit
Regards,
CA. Abhijit Bandyopadhyay,
Chairman, Auditing & Assurance Standards Board
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IMPROMPTU (SHARING OBSERVATIONS)
On a quick reading, and based on first impressions, points primarily noted are:
1. The format , as it appears, is ‘illustrative’ ; as such, one has no clue whether or not it is the final format in which it is going to come into effect.
2. There are two such separate formats; one for BCs and another for PSBCs.
3 In one’s independent perception,and tentative perspective,a CA acting as statutory auditor might have to closely study and critically analyse , so as to fully understand the implications of the revised format (s),- firstly in general then in detail. In doing so, due regard requires to be had to inter- alia the actual but irrefutable fact that, – the contents are couched in a language too verbose, to make it difficult to clearly understand and digest the purport or import thereof, on a word / term -by -word/term used basis, for anyone( including the seniors in practice) ; and even granting reasonable experience in and exposure to banking companies audits.
4. The points of caution made in 3. above, equally, rather with a greater force, might hold good for the managements as well. For, going by the tenor of the applicable portion of the report , the primary responsibility ,- in comparison to the erstwhile position, extremely onerous in nature, – is that of, and has been fixed on, them with regard to the ‘correctness and completeness’ of the final accounts.
Incidentally, in the verification/signature portion for auditor, the wording does not seem to cover a case should the audit be by a LLP/its partner.
Key Note: The above are tentative reactiions of a well-wisher, but admittedly a novice in the field of company audit ; hence necessarily require an in-depth application of mind and detailed consideration by professionals / experts active in that specialised field, before drawing own independent conclusions, for adopting.
To be contd.
Dear Taraknath,
theres a lot difference between cost accountant and a chartered accountant… go to the basics and understand first and then blame other … and plz dont blame ICAI , an esteemed institute of India.
Branch Audit Report (format)are not included in the file available for download.
Dear Sir,
In the attachment Report of Central Statutory Auditors is found and branch Auditors’ report is missing.
Why Institute of Chartered Accountant of India doing politics/suppressing the activity of The Institute of Cost Accountant of India so that practising Cost Accountant are not allowed to do Bank Audits.
Formats for Branch Audit Report are not included in the file available for download.
Why Institute of Chartered of India is doing politics/supressing the Institute of Cost Accountants of India, So that practising Cost Accountant is not allowed or given entry to do Bank Audits.