Guidance Note on Bank Audits (2017)- Revised Edition: issued by the AASB of ICAI

The Guidance Note on Bank Audits (2017)- Revised Edition, issued by the AASB of ICAI is meant for detailed guidance of members on various important items of financial statements of banks, disclosure requirements, prudential norms of RBI, audit procedures, LFAR reporting, Ghosh and Jilani, special purpose reports and certificates, etc. The Guidance Note, inter alia, has been updated by ICAI for the impact of the Master Directions and other relevant circulars issued by RBI in 2016, guidance on demonetization at appropriate places, including the relevant pronouncements of the ICAI having bearing on bank audits. For the benefit of the members, the CD provided by the ICAI accompanying the Guidance Note contains Illustrative formats of engagement letter, auditor’s report, written representation letter, updated bank branch audit programme for the year 2016-17, the text of Master Directions issued by RBI in 2016, the text of Master Circulars and relevant General Circulars issued by RBI.

Complete text of the Guidance Note 2017 and the contents of accompanying CD can be downloaded from ICAI website at:

The statutory audit of banks forms an integral and important part of control mechanism of the regulators, like RBI. It provides the stakeholders inlcuding the Regulators, a comfort with regard to credibility of the financial information that a bank generates at every year end. Given the nature, scope and volume of transactions undertaken by banks in India, coupled with their geographical spread and the various regulatory directions to which they are subject, audit of the financial statements of banks indeed becomes very challenging for their auditors

For quality bank audits, it is essential that the statutory auditors are well equipped in terms of knowledge of the banking sector and keep themselves abreast with the latest developments. The Guidance Note on Bank Audit 2017 edition is an important resource that provides detailed guidance to the bank auditors on the basic tenets of a bank audit, for the benefit of members.

This Guidance Note is updated every year by AASB of ICAI to reflect the important developments that have taken place in the banking sector, warranting attention of the statutory auditors, for example, RBI’s master circulars, general circulars of relevance, consequential updation of guidance for the auditors, where required, various pronouncements of ICAI, etc.