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ICAI Updates Guidance Note on Bank Audits With New Edition

ICAI Notifies Guidance Note on Audit of Banks (2024 Edition)

The Institute of Chartered Accountants of India (ICAI) recently published the 2024 Edition of the Guidance Note on Audit of Banks. This thorough document, issued by the Auditing and Assurance Standards Board, furnishes auditors and financial experts with crucial insights and directives for auditing banks in today’s financial environment. Here’s a brief overview of its contents:

A. Introductory Remarks and Reflections on Previous Years-

The Guidance Note commences with an introspective foreword and preface that acknowledges past editions, recognizing the developing spirit of the banking sector and the necessity for revised auditing measures.

B. Content of Guidance Note on Audit of Banks (2024 Edition)-

The heart of the publication contains detailed recommendations and optimal procedures for auditing banks in 2024. Including critical aspects of the auditing procedure, this section serves as a practical resource for auditors, providing adherence to the utmost professional measures.

C. Supplementary Material of the Guidance Note on Audit of Banks (2024 Edition)-

This segment is categorized into two main sections:

Supplementary Material for Section A – Statutory Central Audit.

Supplementary Material for Section B- Bank Branch Audit.

These additions offer detailed insights and directives customized to the distinct demands of statutory central audits and bank branch audits, respectively.

D. Relevant Text from Master Circular Released by the RBI-

The Guidance note integrates pertinent passages from Master Circulars released by the Reserve Bank of India (RBI). This guarantees auditors access to and include the most current regulatory instructions in their auditing procedures.

List of Relevant Master Circulars Issued by the RBI:

The document furnishes a comprehensive inventory of Master Circulars, facilitating uncomplicated reference and assisting auditors in maintaining compliance with RBI regulations.

E. Relevant Text from Master Directions Issued by the RBI:

Mirroring Master Circulars, the Guidance Note contains pertinent passages from Master Directions given by the RBI. This confirms that auditors are well-informed about the regulations while performing bank audits.

List of Relevant Master Directions Issued by the RBI-

The list streamlines access to Master Directions, enabling auditors to guide through the regulatory body.

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F. Relevant Text from Notifications, FAQs, and General Circulars:

To manage typical questions and provide further context, the Guidance Note integrates pertinent passages from Notifications, FAQs, and General Circulars issued by regulatory bodies.

List of Relevant Notifications, FAQs, and General Circulars-

This section delivers a swift reference to critical notifications, frequently asked questions, and general circulars, helping auditors in staying updated and up-to-date.

The publication of the “Guidance Note on Audit of Banks (2024 Edition)” underscores ICAI’s dedication to upholding the highest auditing standards in the evolving banking sector. Auditors, financial professionals, and stakeholders are urged to use this extensive manual to elevate the quality and credibility of bank audits in 2024.

You can access the Guidance Note through this link:

ICAI emphasized that Members should take note of pertinent directives/circulars issued by the Reserve Bank of India until January 31, 2024, conveniently accessible on the ICAI website for ease of consultation and reference. Members are urged to stay informed about legislative/regulatory updates, such as circulars from the Reserve Bank of India, released after the mentioned date and impacting the statutory audit of banks/bank units for the fiscal year ending March 31, 2024.

Furthermore, Members are encouraged to review this Guidance Note alongside two other publications (Technical Guide on Audit of Internal Financial Controls in Case of Public Sector Banks and Technical Guide on Revised Formats of Long Form Audit Report) from AASB.

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