Bank Audit | ICAI has issued Guidance Note on Audit of Banks | 2023 Edition

The statutory audit of banks forms an integral and important part of control mechanism of the banking industry to enhance the credibility and confidence of investors in the financial information provided at the year end. As the word itself defines, ‘Statutory Audit’ is mandated for all the banking institutions under the Banking Regulation Act, 1949.

The main objective of the bank audit is to uncover the violations in compliance of relevant laws and regulations and to ensure that the accounting practices adopted by the banks are sound and best fitted for the organization. However, in the absence of appropriate guidance, it becomes stressful for the members to evaluate the accuracy and completeness of financial statements prepared by the banks.

Thus, to deliver detailed guidance and to require the attention of statutory auditors on the latest developments, a Guidance Note on Audit of Banks (2023 edition) has been recently issued to update the members on the various aspects of the Audit of Banks.

The Guidance Note on Audit of Banks (2023 edition) is bifurcated in two sections namely Statutory Central Audit (Section A) and Bank Branch Audit (Section B). The Guidance Note also provides the Appendices, Illustrative formats of relevant audit reports, certifications, relevant Master Circulars issued by the RBI, relevant Master Directives, relevant pronouncements, etc.

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