The Institute of Chartered Accountants of India (ICAI) has issued a clarification vide announcement dated 9th April 2023 relating to acceptance of specific assignments by the Concurrent Auditor of Bank Branches. This guidance has been sought by members in order to better understand their professional responsibilities and ensure compliance with ICAI guidelines.
Long Form Audit Report (LFAR) Guidelines
In response to frequently asked questions, the ICAI has clarified the following points relating to Long Form Audit Reports (LFAR) for Concurrent Auditors of Bank Branches:
Concurrent Auditor’s role in LFAR:
The Concurrent Auditor of a Bank Branch can undertake the assignment of LFAR for branches that are not subject to Statutory Audit. For branches subject to Statutory Audit, the LFAR assignment must be performed by the Statutory Auditor.
This information can be found in the FAQ section of the ICAI’s website at https://resource.cdn.icai.org/59065esb48189.pdf.
Miscellaneous Certification Guidelines
The ICAI has also provided guidance on the Concurrent Auditor’s role in miscellaneous certification assignments:
Addressing the certificates:
The Concurrent Auditor or Internal Auditor may undertake the assignment of certification for a Bank branch only if the certificates are addressed to the Bank’s management. They should not be addressed to the Statutory Auditor, a regulator, or without being addressed to anyone in particular.
Certification of Audited Financial Statements Guidelines
Lastly, the ICAI has clarified the Concurrent Auditor’s role in the certification of audited financial statements:
Restrictions on Concurrent Auditor:
The Concurrent Auditor or Internal Auditor is not allowed to perform Statutory Audit of the financial statements of a Bank Branch, nor certify them as audited financial statements.
Members of the ICAI are required to take note of these guidelines and comply with them accordingly. By doing so, they can ensure the ethical and professional conduct expected of them as Concurrent Auditors of Bank Branches.
Related Posts:
Are there any other guidelines or responsibilities for Concurrent Auditors of Bank Branches besides the ones mentioned in the article? Where can members of the ICAI find more information on these guidelines for the acceptance of assignments by the Concurrent Auditor of Bank Branches?
Please refer relevant content mentioned in Related Posts above.
I got few answers for my questions, just sharing for clarity of others concerned:
1. What is the role of the Concurrent Auditor of a Bank Branch in relation to Long Form Audit Reports (LFAR) for branches subject to Statutory Audit? Answer: No Role
2. Can the Concurrent Auditor or Internal Auditor undertake the assignment of certification for a Bank branch if the certificates are addressed to the Statutory Auditor or a regulator? Answer: Not Allowed
3. What are the restrictions on the Concurrent Auditor or Internal Auditor regarding the certification of audited financial statements of a Bank Branch? Answer: Not Allowed
Correct me if I am wrong or mistaken!