Published On : Wed, Apr 12th, 2017

Nagpur branch organised panel discussion on “Just before bank branch audit”


Nagpur: Statutory Bank Branch Audit is an important responsibility bestowed on the Chartered Accountants. It is very important that all CA’s should be aware of the latest developments so that they can perform their duty to the best of their abilities. After the demonetization the responsibly is further increased. Though we have to perform a lot in very short span of time to timely complete the assignment but keeping in view the stake of common man we have to perform not only as a professional obligation but also as a social commitment said CA. Sandeep Jotwani in his welcome address in Panel Discussion of Just Before Bank Branch Audit organised by Nagpur Branch of ICAI.

Past Chairman of Nagpur Branch CA. Mahesh Rathi expressed his views on Verification of Advances. He mentioned that an Auditor should verify that the Advances are sanctioned by the delegated authority. Pre- Sanction visit along with signature on all documents is another important requisite. There may be various cases of Debt Restructuring for which the circulars of RBI should be carefully referred.

CA. P.R Risbud mentioned that after the demonetization RBI has issued 33 notifications but in the Long Form Audit Report (LFAR) there is no question with regard to post demonetisation. While verification of cash balance it is important to see that the Old currency does not form part of the cash balance of the banks. It is important for the Auditors to closely scrutinize the accounts opened under Jan Dhan Yojna.
CA. Abhiram Deshmukh while deliberating on the Tax Audit aspects mentioned that an Auditor should scrutinize the prior period expenditure along with capital expenditure debited to the P&L Account. TDS in bank is a big challenge and proper reconciliation along with expenses debited to the P&L Account is required so that the disallowability can be worked out.

CA. Avinash Joshi while expressing his experience as Central Statutory Auditors mentioned that at Branch level there may be few issues which seem to be small but when they are consolidated at the central level it can becomes an important issues. While calculating and reporting NPA’s it is important to be Mathematical rather than Subjective. Accounts with inherent weakness should be classified as NPA’s.

CA. Govind Batra deliberated on various issues of Know Your Customer (KYC) as well as Prevention of Money Laundering Act (PMLA). He stressed on Mater Circular on PMLA and KYC issued by RBI. This area is very sensitive from the point of view of terrorist funding and money laundering so special care is required by the Auditors.

CA. Yash Verma pointed on the various circulars issued by the RBI1 which are important during the Statutory Bank Audit like Master Circular on Fraud Detection, MSME Lending as well as on Stressed Accounts. It is very important that Auditor should refer various exceptional reposts generated by the banks which can play an important role in reporting.

Program was co-ordinated by Immediate Past Chairman CA. Swapnil Ghate while Secretary CA. Suren Duragkar proposed formal vote of thanks. Prominently present on the occasion were CA. Umang Agrawal, CA. Saket Bagdia, CA. Sanjay Agrawal, CA. Atul Deshmukh and members in large numbers.