Page 268 - DCOM204_AUDITING_THEORY

Auditing Theory

Notes 2008-09 onwards. Thus, State Bank of India, Allahabad Bank, Bank of India, Bank of Baroda,
Canara Bank, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce,
Syndicate Bank, Punjab National Bank, UCO Bank and Union Bank of India would be
required to select/appoint their SBAs from the year 2008-09. In addition, Andhra Bank and
Punjab & Sind Bank which have opted to exercise autonomy in the matter of appointment
of statutory auditors will also select/appoint their SBAs in 2008-09.
2. For the remaining PSBs, the existing practice of RBI providing the list of audit firms to be
appointed as SBAs would continue during the years 2008-09.
3. In respect of the banks identified above, RBI to provide the list of eligible auditors/audit
firms. The existing categorization norms for empanelment of SBAs to continue.

4. The auditors/audit firms who got statutory audit of branches of PSBs in the year 04-05 and
afterwards will continue to get the audit of same bank except in certain exceptional cases.
Banks do not have any authority to remove the audit firms during this period without
prior approval of the Reserve Bank of India.
5. The concept of one audit firm for one PSB to continue. The consent given by an audit firm
will be treated as irrevocable.
6. The number of eligible auditors/audit firms is more than the number of branches to be
audited at the following 33 centres (viz. Mumbai, Kolhapur, Pune, Solapur, Thane, Kolkata,
Chennai, Coimbatore, Delhi/New Delhi, Ajmer, Bikaner, Jaipur, Kota, Udaipur,
Ahmedabad, Vadodara, Surat, Hyderabad, Chandigarh, Raipur, Faridabad, Gurgaon,
Panchkula, Panipat, Sonipat, Bangalore, Ernakulam, Indore, Nagpur, Ludhiana, Jodhpur,
Bhilwara, and Ghaziabad). In such centres, the auditors/audit firms will be put to a period
of compulsory rest for two years. In other centres, where the number of eligible auditors/
audit firms is less than the number of branches to be audited, the branch auditors will be
subjected to the principle of rotation.
7. After the selection of branch auditors, PSBs will be required to recommend the names of
both continuing and new branch auditors to seek the approval from RBI before their
actual appointment

Caselet Auditor’s Report (Indian Bank) Year End : Mar ’12

udited Balance Sheet of INDIAN BANK as at 31st March 2012, the Profit and Loss
Account and Cash Flow Statement annexed thereto for the year ended on that
Adate, in which are incorporated the returns of 20 Branches and 34 Zonal Offices
audited by us, 1608 Branches audited by statutory branch auditors, and 3 foreign branches
audited by local statutory auditors for the sole purpose of inclusion in the consolidation.
The branches audited by us and those audited by other auditors have been selected by the
Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India.
Also incorporated in the Balance Sheet and the Profit and Loss Account are the returns of
327 branches and 26 other offices, which have not been subjected to audit. These unaudited
branches account for 1.12 % of advances, 5.74 % of deposits, 1.69 % of interest income and
5.29 % of interest expenses. These financial statements are the responsibility of the Bank’s
Management. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in
India. Those standards require that we plan and perform the audit to obtain reasonable
Contd...

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