Audit report bank balance amount ?

Hi Sir,

Usually It's normal process you match with your book and bank statement It's called BRS, once you done it stalled cheques to be reversed just submit bank statement and BRS statement to auditors, In the same way you have submit the letter for closing cash balance conformation too   

I have a Audited Report in which 31st. March Bank Balance does not match with bank statement nor Auditor has given any coments in his audit report No Reconcilation Report is attached with Audit Report.

Technically I feel logically Bank Closing balance should be same in Balance Sheet & Bank Statement as on 31, March.

I want to know as per Indian Standard of accountancy without giving any benefit of doubt to auditor, what should I do? Accept or Reject Audit Report with my comments.

Thanks!

In balance sheet the bank balance should be as per books of account. Bank balance will normally differ from bank statement in medium to big companies. If cheques are issued on the last date of the financial year it will not get cleared the same day. so there will be difference with bank. Bank balance will be more. Similarly if cheques are deposited on the last date, balance as per books will be more than that in bank as it will take few days for bank to collect and credit the bank account. A BRS will show the differences between bank balance as per books and as per bank.