What are Statutory Audits of Banks?

The audits that are carried out to check that the accounts and financial statements presented to the individuals as well as the Income Tax Department are fair and correct. It is mandatory by the Income Tax Department and other banks of a high order to conduct these audits regularly. The RBI (Reserve Bank of India) along with the ICAI appoints qualified Chartered Accountants also called the Statutory Auditors. These audits are conducted rigorously for every branch of a bank at the end of the financial year.

Process of Statutory Audit:

While issuing the reports, the auditors ensure that these reports follow the essential requirements and standards which include:

• SA (Standard of Auditing) 700: An opinion is formed, along with which the financial statements are reported.
• SA (Standard of Auditing) 705: On the report provided by the Auditor, various opinions regarding the modifications are offered.
• And SA (Standard of Auditing) 706: In the report provided by the Auditor, the emphasis is laid on matter paragraphs and others.

All these audits have to be conducted within a given time by the appointed auditors. The auditors intimate the banks in prior for the same along with sending the details of the information that they would require during the audits.

For any kind of assistance, contact Mr.Manohar B V, FCA, MCom @ manohar@mbvca.in / 9916870055