With the role of auditors coming under the scanner after the fraud at Satyam Computers last year, the Institute of Chartered Accountants of India (ICAI), the accounting regulatory body, said it would take up the issue of auditing in banks with the Reserve Bank of India to get “adequate time” for auditing.
At present, auditors get only about five days to prepare the audit reports of these banks before the close of the fiscal year.
“It is important to provide sufficient time to auditors and the process should be initiated in February before the financial year closes,” said Amarjit Chopra, president, ICAI. He added that accounting time would depend on the complexity and size of the business of each bank and branch.
A senior executive of a PSU bank said that there is an underlying pressure on banks to announce their financial results ahead of competition. This is a time consuming process and cannot be done within five days, the executive said.
Last year, the auditors were appointed in March. “With limited time to prepare the reports, auditors make do with whatever information they are provided,” a source familiar with the development said.