Important changes in Bank branch audit

No cooling period for Bank Branch Audit for CAs.

Norms on eligibility, emplacement and appointment of Statutory Branch Auditors in Public Sector Banks from the year 2020-21 and on wards

Policy finalised by RBI 2 major changes done as below rest point same

  1.A. Norms for selection of branches of Public Sector Banks (PSBs) for Statutory Audit

i. Statutory branch audit of PSBs should be carried out so as to cover 90% of all funded and 90% of all non-funded credit exposures of a bank. The selection of branches for statutory audit shall include a representative cross section of rural/semi-urban/urban and metropolitan branches, predominantly including branches which are not subjected to concurrent audit. CPUs/LPUs/and other centralised hubs, by whatever nomenclature called, would be included for branch audit every year. The selection of branches shall be finalised by each PSB with the consent of their Statutory Central Auditor/s.

 *IMPACT*

*Removal of mandatory audit of 1/5 branch with advance size  less than 20 cr*

Policy point no 4. The concept of compulsory rest for two years for audit firms located in the specified centres, after completion of four years of continuous branch audit, followed till FY 2019-20 has been done away with. Instead, the branch auditors across all the centres of the country, on completion of four years of continuous branch audit, will be subjected to the policy of rotation i.e. they may be considered for appointment as SBAs of any other PSB. However, the audit firms will not be eligible to be re-appointed as SBAs, in the same bank where they completed their audit assignment prior to rest/ro