No Audit to the auditor of Allahabad Bank: What Next?
Post Covid, the landscape of professional activities for the practicing chartered Accountant is changing fast. It’s a tough time in view of the fact that the GST audit has been abolished, Tax audit limit has been raised to Rs. 10 Cr for taxpayer having 95% of their transactions in digital mode, Banks have been merged which would result in lesser number of concurrent audit, revenue audit & stock audit to the firms.
Now, its the turn of the statutory auditor of the bank. At the time of appointing the auditor, the banks take an undertaking that it is an irrevocable undertaking for the 4 years. Now, Allahabad bank has been merged with the Indian Bank. News in the social media is giving an impression that Allahabad bank has written a letter to the ICAI informing that all the auditors of the Allahabad Bank are relieved and they may accept other audit assignments.
Against the action taken by Indian Bank/ Allahabad Bank, social media circulation is going on that the due representation is give by ICAI to the RBI on this issue.
The copy of the letter as getting circulated in the social media is produced hereunder (It may be noted that this is on the basis of social media communication and nothing officially is available at the ICAI website as such):
Date:- 17th March, 2021
Shri Ajay Kumar Choudhary
1Chief General Manager
Reserve Bank of India
Mumbai
Dear Sir,
Re: Non allotment of audit to displaced auditors of Allahabad Bank by Indian Bank
This has references to the list of Continuing and Non Continuing Bank Branch Auditors for the Audit Cycle 2020-2021 sent by Reserve Bank of India to all Public Sector Banks.
We have received several complaints from our members regarding non allotment of audit by Indian Bank to the auditors of erstwhile Allahabad Bank with the remaining term, during the year. We understand that the names of the Bank Branch Auditors of Allahabad Bank (merged with Indian Bank) have been sent to all Public Sector Banks as Non Continuing Auditors.
We wish to state that the auditors of the then Allahabad Bank were unaware of the given fact and did not seems to have accepted the Bank Branch Audit assignment offered by other banks.
Sir, this has caused undue hardship to the said auditors. To mitigate their genuine hardship, we humbly request your goodself to instruct Indian Bank to accommodate these auditors till the completion of their four year audit cycle.
Looking forward to your positive response.
With kind regards,
(CA. Babu Abraham Kallivayalil)
Chairman, Professional Development Committee
Ongoing changing scenario suggests that the auditor need to explore the newer area of professional opportunities and may not depend on the attest and audit function only. Various value added services will be the future of the profession.
