Bank audit in current scenario

The solution to all the problems related to quality can be easily solved if all the audits are allotted through empanelment so that auditors are really independent in conducting the audits.

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For not getting quality reports;the banks are also responsbile for that. A simple question : Ask them what payment they make to their peons and what payment they make to concurrent auditors?

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Further; why so many papers to be filled in?

Let the auditor decide on what matters to cover in the audit reports so that FILL  IN THE BLANKS audit reports are not given.

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More the paper work; less will be the quality as we have experienced. In Britain also now disussion has started that too much reporting is useless for the mass.

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When "suggested" ways to perform a work  become standards;

the standard of the work performd will go down.

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(Application of mind will be lesser).

Mr.   Surendra Kumar  and other readers 

There are lot of foul plays going around  .

 There is a requirement for mandatory( indirectly )  credit rating under Basel-ii norms for all bank borrowers who enjoy a limit of  Rs 10 cr   as bank facilities .  Unless this is done  penal interest would be levied upon the borrowers -   Credit rating agencies charge heavily ( intial fees & reccuring surveillance fee ) for this and they resort to unfair or coercive means to get business and to retain it .

Unless the borrower gets  a rating of BBB or above ( investment grade ) his chances of enhancing the limit or getting a fair rate of interest becomes impossible 

Only big corporates have been able to get good rating from these agencies ( Reliance / Tata like ) . Majority of the borrowers are  medium sized companies who despite good performance are awarded lower ratings - Economy suffers a set back when the big ones default and not medium sized or small  ones                ( Kindly refer the Hindu editorial dated Feb 7 -2013  " From Standard to Poor "  to get an idea of the practices of credit rating agencies --    Of course we shall not forget Arthor Anderson / Price waterhouse coopers ) 

Retired / ex  senior executives of Banks are at the helm of  these agencies  and  this way our system takes care of their pecuniary interests   . The earlier  president of the institute had given the statistics of total  audit fees  that banks pay annually -  This was fairly / equitably distributed amongst so many Chartered Accountants   and for some of them it was their bread and butter  

Consider from other  angle -  Can core banking  substitute the profesional judgement of  a   independent  ,qualified &  experienced Accountant 

How the core banking can address  the LFAR  , Tax audit  requirements 

It is high time  we all join and do something meaningful to  safe guard  our profession