Preparation for Bank Branch Audit | Statutory Audit of Banks

Banks play an important role in the development of any country. It’s like an agent of the economy. Like all economic activities, the banking sector is also exposed to various risks in its operations. It is of utmost importance to ensure that the banking sector stays healthy, safe, and sound. For the safe and sound banking sector, one of the most important factors is reliable fnancial information supported by quality bank audits.

For this, the Statutory Audit of Banks plays a very important role and equal importance is given to it by RBI. Sub Section (1) of Section 30 of the Banking Regulations Act, 1949 requires that the balance sheet and profit and loss account of a banking company should be audited by a person duly qualified under any law for the time being in force to be an auditor.

Here, we will discuss the guidelines available for the preparation required before the commencement of Bank Branch Audit, Such as :

• • Communication with Branch Management/ Head Office
  • Audit Plan
  • Issuance of Audit Engagement Letter
  • Understanding the Bank and its Environment
  • Review of other Reports, etc.

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