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Guidance Note on Audit of Banks 2017 Edition by AASB

Guidance Note on Audit of Banks 2017 edition issued by the Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India.

The Auditing and Assurance Standards Board (AASB) of the Institute of Chartered Accountants of India (ICAI) has issued the Guidance Note on Audit of Banks 2017 edition on Monday, February 27, 2017.

Audit of banks involves a number of peculiarities e.g. huge volumes and complexity of transactions, wide geographical spread of banks’ network, large range of products and services offered, extensive use of technology, strict vigilance by the banking regulator etc.

The CA Institute has uploaded the Guidance Note on Audit of Banks 2017 edition on its official website ICAI.org for the benefit of members of ICAI. Chartered Accounts are advised to keep track of legislative/regulatory developments, for example, circulars of the Reserve Bank of India, issued subsequent to the aforementioned date and having a bearing on the statutory audit of banks/bank branches for the year ended March 31, 2017.

Guidance Note on Audit of Banks (2017 Edition)
Contents of accompanying CD

Following are the contents of the Guidance Note on Audit of Banks 2017 edition issued by AASB of CA Institute:

Part I – Knowledge of the Banking Industry
Part II – Risk Assessment and Internal Control

Chapter 1: Initial Considerations
Chapter 2: Risk Assessment and Internal Control
Chapter 3: Special Considerations in a CIS Environment

Part III – Items of Bank’s Financial Statements and Auditing Aspects

Chapter 1: Advances – Agriculture
Chapter 2: Advances – Other than Agriculture
Chapter 3: Asset Classification, Income Recognition and Provisioning
Chapter 4: Cash, Balances with RBI and Other Banks, and Money at Call and Short Notice
Chapter 5: Fixed Assets and Other Assets
Chapter 6: Borrowings and Deposits
Chapter 7: Capital, Reserves and Surplus
Chapter 8: Other Liabilities and Provisions
Chapter 9: Contingent Liabilities and Bills for Collection
Chapter 10: Treasury Operations – Foreign Exchange and Derivative Transactions
Chapter 11: Profit and Loss Account
Chapter 12: Disclosure Requirements in Financial Statements
Chapter 13: Consolidation of Branch Accounts
Chapter 14: Consolidation of Financial Statements
Chapter 15: Inter-Office Transactions

Part IV – Long Form Audit Reports

Chapter 1: Long Form Audit Report in case of Bank Branches
Chapter 2: Long Form Audit Report in case of Banks

Part V – Special Aspects

Chapter 1: Basel III
Chapter 2: Special Purpose Reports and Certificates
Chapter 3: Compliance with Implementation of Ghosh & Jilani Committee Recommendations
Chapter 4: Other Aspects
Chapter 5: Other Aspects – Service tax

Following are the contents of accompanying CD, you will get along with the Guidance Note on Audit of Banks 2017 edition:

Foreword and Preface of Past Years
1. Text of Guidance Note on Audit of Banks 2017 Edition
2. Banking in India
3. Accounting and Auditing Framework
4. Accounting Systems
5. Legal Framework
6. Appendices

I. Section 6 of the Banking Regulation Act 1949
II. The Third Schedule to the Banking Regulation Act, 1949
III. Illustrative Format of Report of the Auditor of a Nationalised Bank
IV. Illustrative Format of Report of the Auditor on the Standalone Financial Statements of a Banking Company
V. Illustrative Format of Report of the Branch Auditor of a Nationalised Bank
VI. Illustrative Format of Report of the Branch Auditor of a Banking Company
VII. Illustrative Format of Engagement Letter in case of a Nationalised Bank
VIII. Illustrative Format of Engagement Letter to be sent to the Appointing Authority of the Nationalised Bank by Branch Auditor
IX. Illustrative Format of Engagement Letter to be sent to the Appointing Authority of the Banking Company
X. Illustrative Format of Engagement Letter to be sent to the Appointing Authority of the Banking Company (Separate only for Internal Financial Control u/s 143(3)(i) of Companies Act, 2013)
XI. Illustrative Format of Written Representation Letter to be obtained from Branch Management
XII. Demonetization

7. Illustrative Bank Branch Audit Programme for the year ended March 31, 2017
8. Illustrative Checklist for the Verification of the aspects of the Treasury/ Investments of the Bank in Statutory Audit
9. List of Relevant Master Directions issued by RBI
10. List of Relevant Master Circulars issued by RBI
11. List of Relevant General Circulars

You may purchase the hard copy (printed book) of this Guidance Note on Audit of Banks February 2017 Edition along with CD that will come with the printed book will contain the complete text of these Directions/Circulars.

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