Skip to main content

ICAI issues advisory on joint auditors' work allocation in bank audits

By
 ICAI issues advisory on joint auditors' work allocation in bank audits
 
The allocation of work should be in agreement with the management of the bank, said ICAI Chartered accountants should ensure that allocation of work during joint audits at banks should be done in agreement with respective managements, the ICAI has said following certain issues flagged by the RBI. 
 
The ICAI's latest advisory to the members came after it received information from the RBI that there have been "certain issues between the banks' joint auditors and the banks' management regarding the allocation of work among the joint auditors".The move, though unrelated, also comes at a time when the role of auditors have come under the lens in the wake of the nearly Rs 127 billion Punjab National Bank (PNB) scam, the biggest in the Indian banking sector.
 
The Institute of Chartered Accountants of India (ICAI), the apex body of chartered accountants, has the Standard on Auditing (SA) 299 about 'Responsibility of Joint Auditors'.This standard also touches upon allocation of work among the joint auditors.Following the central bank flagging issues with respect to banks' joint auditors and respective managements, the institute has issued the advisory to its members. 
 
While allocating work among themselves, all efforts should be made that the allocation of work should be in agreement with the management of the bank, the advisory said."When so required, the said allocation may be carried out in consultation with those charged with governance of the bank," it noted.
 
As per SA 299, where joint auditors are appointed, they should, by mutual discussion, divide the audit work among themselves.The division of work among joint auditors as well as the areas of work to be covered by all of them should be adequately documented and preferably communicated to the entity, according to the standard.
 
The Business Standard, New Delhi, 12th March 2018

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more