Allotment of Statutory Bank/ Branch Audits based on ICAI Software (FY 2018-19)
Appointment of auditors of public sector (PSU) banks/ branches for FY 2018-19 will be based on a software which has been developed by ICAI, i.e. allotment of bank-branch audits for FY 2018-19 will be made using web-based automated software, to ensure uniformity in allotment of audit besides being fair, transparent and equitable.
Also, the new procedure will suitably address the concerns of ICAI and Professionals regarding the autonomy of banks in the selection of bank-branch auditors.
As you know, we have over the years expressed our concern on the appointment of auditors of public sector banks by Banks’ Board themselves and on the autonomy given to them. To address this, as you are very well aware, ICAI had developed an automated web-based software for the selection of statutory branch auditors of public-sector banks. On our request, RBI requested all banks to take help of this software or any other software to allot bank-branch audit. And last year, the ICAI software was utilised by three banks, namely Dena Bank, Syndicate Bank and Oriental Bank of Commerce, and we got a letter of appreciation.
I am happy to share that this year, majority of banks have taken the demo of this software and many of them have expressed their consent to use the same. With such a vast usage of our software, our concern regarding the autonomy of banks in the selection of bank-branch auditors will be suitably addressed. Moreover, the allotment of audit will be uniform besides being fair, transparent and equitable.