The Institute of Chartered Accountants of India ( ICAI ) has recently released the Guidance Note on Audit of Banks ( 2024 Edition ). This comprehensive document, released by the Auditing and Assurance Standards Board, provides auditors and financial professionals with essential insights and guidelines for auditing banks in the current financial landscape.
The Contents are briefly outlined as follows: —
A. Foreword and Preface of Past Years
The Guidance Note begins with a thoughtful foreword and a preface that reflect on the past editions, acknowledging the evolving nature of the banking sector and the need for updated auditing standards.
B. Text of Guidance Note on Audit of Banks ( 2024 Edition )
The core of the release includes detailed guidelines and best practices for auditing banks in 2024. Covering crucial aspects of the auditing process, this section serves as a valuable resource for auditors, ensuring adherence to the highest professional standards.
C. Appendices of the Guidance Note on Audit of Banks ( 2024 Edition )
This section is divided into two key areas:
Appendices of Section A – Statutory Central Audit
Appendices of Section B – Bank Branch Audit
These appendices offer specific insights and instructions tailored to the unique requirements of statutory central audits and bank branch audits, respectively.
D. Text of Relevant Master Circulars Issued by the RBI
The Guidance Note incorporates the text of relevant Master Circulars issued by the Reserve Bank of India (RBI). This ensures that auditors have access to and can incorporate the latest regulatory guidelines in their auditing processes.
List of Relevant Master Circulars Issued by the RBI
The document provides a comprehensive list of Master Circulars, offering easy reference and aiding auditors in staying compliant with RBI regulations.
E. Text of Relevant Master Directions Issued by the RBI
Similar to Master Circulars, the Guidance Note includes the text of relevant Master Directions issued by the RBI. This ensures that auditors are well-versed in the regulatory landscape while conducting bank audits.
List of Relevant Master Directions Issued by the RBI
The list simplifies access to Master Directions, allowing auditors to navigate through the regulatory framework effortlessly.
F. Text of Relevant Notifications, FAQs, and General Circulars
To address common queries and provide additional context, the Guidance Note incorporates the text of relevant Notifications, FAQs, and General Circulars issued by regulatory bodies.
List of Relevant Notifications, FAQs, and General Circulars
This section offers a quick reference to important notifications, frequently asked questions, and general circulars, aiding auditors in staying informed and up-to-date.
The release of the “Guidance Note on Audit of Banks ( 2024 Edition )” underscores ICAI’s commitment to maintaining the highest standards of auditing in the dynamic banking sector. Auditors, financial professionals, and stakeholders are encouraged to utilize this comprehensive guide to enhance the quality and reliability of bank audits in 2024.
The Guidance Note can be accessed at: https://www.icai.org/post/guidance-note-on-audit-of-banks-2024-edition
Notably, ICAI stated that Members’ attention is invited to relevant directions/circulars issued by the Reserve Bank of India up to January 31, 2024, available at ICAI website for ease of use and reference. Members are advised to keep track of legislative/regulatory developments, for example, circulars of the Reserve Bank of India, issued subsequent to the aforementioned date and having a bearing on the statutory audit of banks/bank branches for the year ended March 31, 2024.
Members are also advised to read this Guidance Note along with other two publications ( Technical Guide on Audit of Internal Financial Controls in Case of Public Sector Banks and Technical Guide on Revised Formats of Long Form Audit Report ) of AASB
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
