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Recently, ICAI issued certain FAQs relating to professional ethics of members pertaining to bank assignments (the FAQs). Some key matters clarified by the FAQs include:

  • Long Form Audit Report (LFAR): One of the FAQs mentions that: Whether the concurrent auditor of a branch of a bank can undertake the assignment of LFAR of the same branch? In this regard, it has been provided that 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 regard to other branches, the LFAR assignment should be undertaken by the statutory auditor.
  • Miscellaneous certification: The FAQs clarify that 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/regulator etc.
  • Certification of audited financial statements: The FAQs state that a concurrent auditor/internal auditor can neither perform statutory audit of the financial statements of a bank branch, nor certify them as audited financial statements.

To access the text of the FAQs, please click here

The ICAI has formed an Expert Panel (the panel) in order to provide necessary support to the members in practice with respect to their queries on auditing aspects (pertaining to statutory audits) with the objective of enhancing audit quality.

The panel will address the queries from 17th April, 2023 till 30th September, 2023.

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

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