ICAI : PNB did not hire external CA's for Concurrent audit

ICAI : PNB did not hire external CA's for Concurrent audit: The Institute of Chartered Accountants of India reported that PNB did not hire external CA's for Concurrent audit which should be ordinarily be carried out by an independent firm of chartered accountants. As per the current system of appointment of auditors in PNB, both internal and concurrent audit was carried out by the PNB officials. ICAI also added thatThough a number of government agencies are trying to identify the culprit, yet it seems that prima facie the fraud has been done by collusion of many persons, inside and outside the system. The RBI in November 2016, in order to strengthen the banking system, instructed all the banks to link their SWIFT system with CBS. But, PNB fraud remained undetected because the bank did not link it's swift system with the central banking system.Letters of undertakings and unauthorised LCs beyond sanctioned limit remained outside the books and CBS of PNB and, therefore, could not be detected by many supervisory layers. The High Power Group has been formed by ICAI to study the systemic issues in the Nirav Modi fraud. The High Power Group is waiting for required documents /information from the scam-hit bank. "It is worthwhile to note that the Group recommendations are dependent on availability ofdocumentsinformation' as reported by ICAI. Click Here to Buy CA INTER/IPCC Pendrive Classes at Discounted Rate

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