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A. Norms for selection of branches of Public Sector Banks (PSBs) for Statutory Audit 1. The norms for selection of branches of PSBs for statutory audit from the year 2020-21 onwards will be based on the following guidelines: Statutory branch audit of PSBs should be carried out so as to cover 90% of all funded and 90% of all non-funded credit exposures of a bank. The selection of branches for statutory audit shall include a representative cross section of rural/semi-urban/urban and me
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FAQ :
The main objective is to ensure that statutory branch audits cover 90% of all funded and non-funded credit exposures of a bank, and to establish clear guidelines for the selection and appointment of auditors.
Branch selection includes a representative cross-section of rural, semi-urban, urban, and metropolitan branches, predominantly those not under concurrent audit. Centralised hubs like CPUs/LPUs are also included annually. The selection is finalised by each PSB with their Statutory Central Auditor.
Statutory Branch Auditors (SBAs) will have a maximum tenure of four years in a particular bank.
After completing four years of continuous branch audit, audit firms will be subject to a rotation policy and may be considered for appointment in any other PSB, but not in the same bank for at least one cycle of four years.
No, the policy of one audit firm for one PSB will continue. An audit firm is eligible to be appointed as a central or branch auditor of only one PSB in a particular year.
The Institute of Chartered Accountants of India (ICAI) prepares the initial list of eligible auditors/audit firms as per RBI norms. This list is then scrutinised by the RBI before being forwarded to PSBs.
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