Acceptance of certain assignments by the Concurrent Auditor of Bank Branches
April, 11th 2023
Ethical Standards Board The Institute of Chartered Accountants of India 9th April, 2023
Re.: Acceptance of certain assignments by the Concurrent Auditor of Bank Branches
The members have sought guidance from the Institute on the matter of acceptance of certain assignments by the Concurrent Auditor of Bank Branches. In this regard, the matters are clarified hereunder: -
Q. 13 Whether the Concurrent Auditor of a Branch of a Bank can undertake the assignment of LFAR of the same Branch?
A. The concurrent Auditor of a Branch can undertake the assignment of LFAR only with respect to Branches which are not subject to Statutory Audit. With respect to Branches which are subject to Statutory Audit, the LFAR assignment shall be undertaken by the Statutory Auditor.
The concurrent auditor/Internal Auditor may undertake the assignment of certification for a Bank branch only if the certificates are addressed to the Bank's management i.e not addressed to the statutory auditor/a regulator/ without being addressed to anyone in particular.
Certification of audited financial statements
The Concurrent Auditor/ Internal Auditor can neither perform Statutory Audit of the financial statements of a Bank Branch , nor certify them as audited financial statements.
The members are required to take note of the above and comply accordingly.