ICAI Requests MCA for more Transparent process of Bank Auditors Apponitment in the post Demonetization era involving high probability of Frauds
ICAI has requested MCA for more objective and transparent system of selecting Bank Auditors, in view of high probability of frauds post demonetisation. ICAI has suggested that the RBI or the Banks Board Bureau should appoint Bank auditors, instead of their appointments by Banks at their own.
In the post demonetization era, the ICAI is of the opinion that it will be even more relevant that the Banks Board Bureau should frame norms for appointing the central statutory auditors of Banks.
Till a few years back, a committee, which included officials from the Finance Ministry, the Reserve Bank of India, Comptroller and Auditor General of India, India Banks’ Association, used to appoint the auditors.
ICAI President Mr. Devaraja Reddy has stressed that lack of quality audits and norms to select quality audit teams is one of the reasons behind mounting NPAs.