My dear colleagues,
Sub.: Allotment of bank branch audits
You
might be aware that the Reserve Bank of India has recently decided to
restrict audit of bank branches, to such branches whose advances are
more than Rs.5 crores. Hitherto, this limit of auditable branches was
Rs.1 crore.
Not only me, but the entire Council was perturbed
due to the revised norms. We were concerned, not just because few
members of the profession may not get audit allotment, but more due to
the fact that sizeable number of branches of banks will go unaudited.
We argued with RBI that advances should not be the criteria of
determining the requirement of audit, but there were several other
matters which should be put under the strict scanner of audit, in view
of large volume of public money involved in the banks. According to
RBI, the norm of Rs.1 crore was fixed sometime in the year 1975, and
the same needed to be revised in view of efflux of time. We
nevertheless made representation to the Deputy Governor of RBI
immediately and our Council members, who flew from Delhi to Mumbai
specially for this purpose, also met some of their key senior
officials. I had a dialogue with the Deputy Governor.
We
understand that in view of the urgency in starting the work of audit,
the allotments have been finalised in respect of those branches whose
advances are more than Rs.5 crores. The norms are being revised and the
allotments in respect of branches having advances to the tune of more
than Rs.3 crore are in the process of being finalised which would form
part of their revised panel.
I am sure the members will appreciate the efforts taken by the ICAI.
Assuring of best and continued service to the profession, I remain
Yours sincerely
CA. SUNIL TALATI
President, ICAI
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