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May I invite every one for a detailed discussion on the relevance of statutory Audit of branches of public sector banks
There is a move to gently scrap stautory audit of branches which formed a major source of revenue for our C.A fraternity . How ever our revenues we shall keep a side for the time being . Need , relevance and importance of such audit in the context of core banking solutions by banking industry may form the focus -- Pl air your views |
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Audit by independent Accountants has proved to be an effective deterent against frauds and malpractices . Can core banking solution undermine this -- Definetly - not |
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Whose assurances are more reliable for the central auditors of the bank - definetly not that of the internal management but that of independent professional collegues
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Is that age has come where in Developments in Information Technology has proved to substitute professional judgement of those with proven credentials - academic , technical , and experinced -
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"CHARTERED ACCOUNTANTS ACT" came into force before the " INDIAN CONSTITUTION" this signifies the importance we had given for a stronger and sound economy - Chartered Accountant community has alaways stood up to these expectations and we shall never be failing in this --- We shall stand up right -
Do we need to be kept up right - Ans no - What are the hidden agenda of those going to scrap Audits -
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Are advances alone is the concern - Public is concerned with their deposits as well - public have invested in the shares of these banks - Can these concerns be undermined? |
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Apparently there is a nexus between Ministry Of Finance , RBI, & Bank management aiming to destroy independent statutory audit - Are the the real owners of public sector banks? |
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Letr us discuss the long form audit report we give in the case of banks - which is more of profesional judgement - Is core banking capable of substituting this ? |
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First of all we should discuss weather Bank Audit will be alloted or not and whats the limit finalised by RBI |
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Manadatory credit rating under Basell II norms is applicable for all borrowers above 10 crore limit - RBI has mandated the same indirecrtly ( PRICING OF LOANS - Risk weightage ) EX Senior excutives are at the helm of all Credit rating agencies and most of them follow unethical / coerceive means to enhance their earnings with the help of bank management - These control regime is apparently for their own pecuniary benifits
Bigger amonst the bigs are few and they default - majority are small and medium scale borrowers whose performances are vital to our economy -- How many instances are there when a medium sized business has been able to get a AAA/ AA rating from Credit rating rating agencies, despite performing well ?
What do all these suggest to the common man ? Can he take everything for granted in the banking scector which is vital to our economy ?
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friends you all post your views . time is running out |
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Recently The Comptroller & Auditor General of India had commented that in this country watch dogs are being asked to take up the Job of accountants - Audits are undermined in genearal in our nation . miserable indeed ?
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There are so many issues which core banking solution canot bring out - For instance calculation of DRAWING POWER by analysing the monthly stock & receivable statements - if stock are inflated by quantity / value as apparent from the sales turn over reported - What checks and controls are there in branches as a safe guard against the same - Another instance a deteriorating liqdity position as signalled by Current ratio in the quarterly returns - An independent C.A alone can notice and act upon such iregularities ? Can such controls need to be dispensed with under the guise of core banking ?
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C.A.G is the apex body that controls the audit of Jammu & Kashmir brank Ltd -- No such proposal to scrap branch audit by fixing thershold limit at 20 crores has been m,ade by C.A.G --- seriosness of the highest audit body of the country towards bank audit is evident thus |
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WELL ANITHA ARORA THANKS FOR JOIINING THE DISCUSSION --- JUST NOW I READ YOUR COMMENT THAT\" FIRST WE DISCUSS WHETHER BANK AUDIT WILL BE ALLOTTED OR NOT -- WHAT IS THE ADVANCE LIMIT FIXED BY RBI ----
"AUDIT OF FINANCIAL ACCOUNTS IS THE EXCLUSIVE PREROGATIVE OF CHARTERED ACCOUNTANTS " WHAT IS TO BE DISCUSSED IS WHETHER ACCOUNTS IN THIS COUNTRY NEED AUDIT OR NOT WHETHER IT'S BANK OR OTHER ENTITY
BANKS HAVE STARTED COMMUNICATING WITH CONTINUING AUDITORS AND OFFER LETTER CAN BE EXPECTED NEXT WEEK . THERE ARE NO OFFICIAL OR AUTHENTIC INFORMATIONREGARDING THERSHOLD LIMIT OF ADVANCES
OUR INSTITUTE MAY PRESS FOR STATUS QOU , SO LONG THE FINAL PICTURE IS NOT CLEAR WE MAY HOPE FOR THE BEST
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Now Banks have started sending offer letters to continuing Auditors fixing the thershold limit at 20Crores .
Informal sources qouting a central council member say thet the Institute is making eforts to maintan ststus quo but Mr Chidambaram is not yielding |
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Thank you all friends -- None of you except Anitha Arora have anything to say in this matter ? |
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Three major private sector Banks were alleged to have indulged in money laundering - Kejariwal had already levelled chrges against HSBC -
What do all these indiacte or suggest
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Yes Statutory bank audit must not be abolished as CBS (System) can not replace the CA's judging of the financial data, further bank management also gets freedom to run the branches as per thier own judgements and not by the policies and laws. |
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