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Discussion < Banking < PNB SCAM - Problems faced by auditors
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students zone,CA Students

[ Scorecard :60 ]

I think, auditors have become soft targets for bankers and bureaucrats and no one is finding fault with the persons responsible for not implementing proper systems and procedures. For the fraud of the level happened in PNB, all are blaming, internal, concurrent and statutory auditors, but it is surprising no one is finding fault with the Company which has provided Core-Banking solution to the bank. At least as auditors (mainly as concurrent auditors), CAs are paid around Rs 15000/-, 20000/- per month etc., Whereas Companies  who have installed their  core banking solutions have charged these banks Crores of rupees and day in and day out they are charging crores of rupees as fees for maintaining these so called core banking solutions which were not integrated with SWIFT. If one can blame auditors for non fraud detection, even the software providers are also equally be held responsible for non integration. They may escape by citing it is not within the scope of work given to them. But why auditor's scope is always unlimited. Why the blame is only on auditors and not the management who have not introduced proper systems and procedures. Now-a-days you come across so many companies who have come out with softwares for assessing the Risks faced by banks by giving Risk Based Internal Audit software and some banks are really asking concurrent auditors to fill up nearly 300 pages check list every month to assess the risks. If these softwares are capable of identifying the risks, why these types of frauds were not detected in spite of various softwares used by these banks. They should introspect themselves.

Considering the risks involved, I appeal to all my co-professionals not to take up Concurrent Audit assignment of all nationalised banks who pay paltry sum of fees and blame us in case there are frauds. Presently I have seen Union Bank of India has called for quotation. My sincere advice to all my co professional is please do not participate in these tenders. Even BOB has come out with tenders for specialised functions. Please avoid applying for audit of nationalised banks as one may land into unnecessary controversies and lose peace of mind.

I want others to give their comments on my views. CA P Prasanna Kumar


[ Scorecard :54 ]

I agree with him unless the fee structures increase to reasonable level that is the payment of branch head level, we should not accept concurrent audit. Even stock audit fees need to be revised to double the present fee structure. I am not applying concurrent audit of any bank. This is my pesonal view CA S N Banerjee.

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