ICAI Launches Online Panel of Experts for addressing Bank Branch Audit 2025

The Institute of Chartered Accountants of India (ICAI) has launched the Online Panel of Experts for addressing Bank Branch Audit 2025.

The bank audit season is around the corner and the Reserve Bank of India (RBI) has made several significant announcements requiring the attention of Statutory Branch Auditors (SBAs).

These include revised guidelines on Basel III capital regulations, prudential norms for income recognition, asset classification, and provisioning related to advances, as well as master directions on external commercial borrowings, trade credits and structured obligations, Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR); transfer of loan exposures; and presentation and disclosures of financial statements of banks.

The Auditing and Assurance Standards Board (AASB) of the Institute of Chartered Accountants of India (ICAI) has issued the 2025 Edition of the Guidance Note on Audit of Banks to guide the members w.r.t. the aforementioned developments.

The Guidance Note has been updated to reflect the latest ICAI announcements regarding bank audits, as well as any additions or changes to applicable laws or regulations.

The banking industry’s geographical reach, diverse customer base, and extensive range of products and services are all typical, which presents a multitude of challenges for members when conducting audits within the designated timelines.

These challenges may include determination of Non-Performing Asset (NPA) status, implication of complex data encountered during branch audits, encountering situations where relevant RBI circulars are unavailable, understanding the implications of requirements of RBI circulars, assessing the nature and adequacy of documentation, determining appropriate wording for audit reports on crucial matters in bank branch audits, addressing reporting requirements for Long Form Audit Reports, considering recommendations from committees such as Ghosh and Jilani, and preparing special purpose reports and certificates, etc.

These requirements highlight the significance of extensive preparation as well as staying updated with regulatory norms in order to properly conduct bank branch audits.

With a view to supporting the members for fast resolution of such queries, AASB is pleased to announce an Online Panel of Experts for addressing Bank Branch Audit related queries for financial year 2024-25. The Panel will address queries from 1st April 2025 till 15th April 2025.

The queries are to be sent at email address: bankauditfaq@icai.in

Panel Convenors

CA. Sripriya Kumar, Chairperson, AASB and CA. Ravi Kumar Patwa, Vice Chairman, AASB, ICA

Members are particularly informed that the views stated by the panel’s experts are their personal views and do not necessarily represent the views of the AASB or ICAI. The AASB, ICAI, and Panel members accept no responsibility for the querists’ acts based on such advice.

Furthermore, these views shall not be utilised as evidence in any non-judicial, quasi-judicial, or judicial process before any authority.

To enable us to serve you better, you are also advised to:

• Be brief but provide full information and facts.
• Not to mention the name of the Bank or Branch or the name of the Borrower or depositor to avoid problems of violation of client confidentiality requirements under the ICAI Code of Ethics.
• Avoid rejoinders.
• Not to send the same query twice.
• Draft the report on your own.
• Use your own judgement.