| ANNOUNCEMENT FOR THE ATTENTION OF THE
MEMBERS Applicability of the Revised Audit Report Formats (including for bank/ bank branch audit reports) and Reporting in respect of Memorandum of Changes in Bank Audit Reports |
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1. Members are requested to note that
the audit reports for audits of financial statements for periods beginning on or
after 1st April 2012 are to be issued in the revised auditor’s report format, as
prescribed in the Revised Standard on Auditing (SA) 700, Forming An Opinion and
Reporting on Financial Statements. The text of the revised auditor’s report
appears in the Appendix to the said SA and can be downloaded from the website of
the Institute of Chartered Accountants of India at URL: http://220.227.161.86/17874sa700annx1.pdf.
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2. FOR THE READY REFERENCE OF MEMBERS CARRYING OUT AUDIT OF BANKS/
BANK BRANCHES, THE AUDITING AND ASSURANCE STANDARDS BOARD OF THE ICAI HAS
DEVELOPED RELEVANT AUDIT REPORT FORMATS IN LINE WITH THE REQUIREMENTS OF THE
REVISED SA 700. THESE FORMATS HAVE BEEN GIVEN ALONGWITH THIS ANNOUNCEMENT
(click here to download the
formats). IT MAY ALSO BE NOTED
THAT ICAI HAS ALREADY SENT A COMMUNICATION TO RBI REGARDING THESE REVISED AUDIT
REPORT FORMATS BEING APPLICABLE FOR AUDITS FOR FY 2012-13 AND
ONWARDS.
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3. Further, members undertaking bank audits
are also requested that, pursuant to a recent communication by the Reserve Bank
of India to ICAI in this regard, the total number and amount of debits/ credits
arising pursuant to the Memorandum of Changes submitted by them, be given under
the heading “Other Matters Paragraph” on the face of the audit report/s issued
by them. Necessary guidance in this regard is being provided in the 2013
Guidance Note on Audit of Banks which would be issued
soon.
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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 after completion of five / four years of continuous branch audit. In other centres, where the number of eligible auditors / audit firms is less than the number of branches to be audited, the branch auditors on completion of five / four years of continuous branch audit will be subjected to the principle of rotation. |
