06 July 2024
Recent updates on the branch statutory audit for nationalized banks reveal that the selection and appointment process of Statutory Branch Auditors (SBAs) for Public Sector Banks (PSBs) must follow a transparent, fair, and judicious methodology. This process is guided by board-approved policies and Audit Committee of the Board (ACB) decisions
Here are some key points regarding the process and guidelines:
1. Selection of Branches: The top 20 branches, based on outstanding advances, must be allotted to SBAs. At least 15% of the bank’s gross advances should be covered by branches under SBAs 2. Appointment and Tenure: SBAs are appointed for one year at a time, up to a period of four consecutive years. The selected audit firms’ names must be uploaded to the RBI’s Auditor Allocation System (AAS) 3. Disclosure: PSBs are required to disclose the extent of business coverage under statutory branch audit on their websites for the current and previous fiscal years
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