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Advanced Auditing

Notes Preparation and Submission of Audit Report

The branch auditor forwards his report to the statutory auditors who have to deal with the same
in such manner as they consider necessary. It is desirable that the branch auditors’ reports are
adequately detailed in unambiguous terms. As far as possible, the financial impact of all
qualifications or adverse comments on the branch accounts should be clearly brought out in the
branch audit report. It would assist the statutory auditors if a standard pattern of reporting, say,
head-wise, commencing with assets, then liabilities and thereafter items related to income and
expenditure, is followed. Similarly, for statutory auditors of a bank, the form and content of the
audit report should be determined by the auditor taking into account his terms of engagement
and applicably statutory, regulatory and professional requirements.



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
assurance about whether the financial statements are free from material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by the management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
The Balance Sheet and the Profit and Loss Account have been drawn up in Form “A” and
“B” respectively of the Third Schedule to the Banking Regulation Act, 1949.
As required by the Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970 and subject to the limitations of disclosures required therein and the limitations of
the audit indicated in Para (1) above, we report that:
1. We have obtained all the information and explanations, which to the best of our
knowledge and belief, were necessary for the purposes of our audit and have found
them to be satisfactory.
2. The transactions of the Bank, which have come to our notice, have been within the
powers of the Bank.
Contd....

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