An
Illustrative Format of Report of the Auditor of Banking Company
INDEPENDENT AUDITOR’S REPORT
To
The Shareholders
Report on the Financial Statements
- We have audited the accompanying
financial statements of the ABC Bank Limited, which comprise the Balance
Sheet as at 31st March,
2XXX and the Statement of Profit and Loss and the cash flow statement for
the year then ended, and a summary of significant accounting policies and
other explanatory information.
Incorporated in these financial statements are the returns of
________ branches audited by us, ______________ branches audited by branch
auditors and unaudited returns of ______________ branches in respect of
which exemption has been granted by the Central Government under Rule 4
(1) (a) of the Companies (Branch Audit Exemption) Rules, 1961 from the
provisions of sub-sections (1) and (3) of Section 228 of the Companies
Act, 1956. These unaudited branches account for ______________________ per
cent of advances, _______________ per cent of deposits, ___________________
per cent of interest income and ____________________ per cent of interest
expense.
Management’s Responsibility for the Financial Statements
- Management is responsible for the
preparation of these financial statements in accordance with XYZ Law of
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation of the
financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor’s Responsibility
- Our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our
audit in accordance with the Standards on Auditing issued by the Institute
of Chartered Accountants of India. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from
material misstatement.
- An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
- We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
- In our opinion and to the best of our
information and according to the explanations given to us, the said
accounts together with the notes thereon give the information required by
the Banking Regulation Act, 1949 as well as the Companies Act, 1956, in
the manner so required for the banking companies and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i)
in the case of the Balance Sheet, of the state
of affairs of the Bank as at 31st March, 2XXX;
(ii)
in the case of the Profit and Loss Account
of the profit/loss for the year ended on that date; and
(iii)
in the case of the Cash Flow Statement, of
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Matters
- The Balance Sheet and the Profit and
Loss Account have been drawn up in accordance with the provisions of
Section 29 of the Banking Regulation Act, 1949 read with Section 211 of
the Companies Act, 1956.
- We report that:
(a)
we have obtained all the information and
explanations which, to the best of our knowledge and belief, were necessary for
the purpose of our audit and have found them to be satisfactory.
(b)
the transactions of the Bank, which have
come to our notice, have been within the powers of the Bank.
(c)
the returns received from the offices and
branches of the Bank have been found adequate for the purposes of our audit.
- In our opinion, the Balance Sheet,
Profit and Loss Account and Cash Flow Statement comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the Companies
Act, 1956.
- We further report that:
(i)
the Balance Sheet and Profit and Loss
Account dealt with by this report, are in agreement with the books of account
and the returns.
(ii)
in our opinion, proper books of account as
required by law have been kept by the Bank so far as appears from our
examination of those books.
(iii)
the reports on the accounts of the
branches audited by branch auditors have been dealt with in preparing our
report in the manner considered necessary by us.
(iv)
as per information and explanation given
to us the Central Government has, till date, not prescribed any cess payable
under section 441A of the Companies Act, 1956,
(v)
on the basis of the written representation
received from the directors and taken on record by the Board of Directors, none
of the directors is disqualified as on 31st
March, 2XXX from being appointed as a
director in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
For ABC and Co.
Chartered Accountants
Signature
(Name of the Member Signing the Audit Report)
(Designation)#
Membership Number
Firm Registration Number
Place of Signature:
Date of Report:
# Partner or proprietor, as the case may be.
An Illustrative Format of
Report of the Auditor of a Nationalised Bank
INDEPENDENT AUDITOR’S REPORT
To
The President of India
Report On the Financial Statements
- We have audited the accompanying
financial statements of XY Bank as at 31st March, 2XXX, which comprise the
Balance Sheet as at March 31, 2XXX, and Statement of Profit and Loss and
the cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Incorporated in these financial statements are the returns of ___________
branches audited by us and ______________ branches audited by branch
auditors. The branches audited by us and those audited by other auditors
have been selected by the Bank in accordance with the guidelines issued to
the Bank by the Reserve Bank of India. Also incorporated in the Balance
Sheet and the Statement of Profit and Loss are the returns from
_______________ branches which have not been subjected to audit. These
unaudited branches account for ___________________per cent of advances,
_____________ per cent of deposits, _______________ per cent of interest
income and _______________ per cent of interest expenses.
Management’s Responsibility for the Financial Statements
- Management is responsible for the
preparation of these financial statements in accordance with XYZ Law of
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation of the
financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor’s Responsibility
- Our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our
audit in accordance with the Standards on Auditing issued by the Institute
of Chartered Accountants of India. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from
material misstatement.
- An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company’s preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
- We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
- In our opinion, as shown by books of
bank, and to the best of our information and according to the explanations
given to us:
(i)
the Balance Sheet, read with the notes
thereon is a full and fair Balance Sheet containing all the necessary
particulars, is properly drawn up so as to exhibit a true and fair view of
state of affairs of the Bank as at 31st
March 2XXX in conformity with accounting
principles generally accepted in India;
(ii)
the Profit and Loss Account, read with the
notes thereon shows a true balance of profit/loss, in conformity with
accounting principles generally accepted in India, for the year covered by the
account; and
(iii)
the Cash Flow Statement gives a true and
fair view of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
- The Balance Sheet and the Profit and
Loss Account have been drawn up in Forms “A” and “B” respectively of the
Third Schedule to the Banking Regulation Act, 1949.
- Subject to the limitations of the
audit indicated in paragraph 1 to 5 above and as required by the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, and
subject also to the limitations of disclosure required therein, we report
that:
(a)
We have obtained all the information and
explanations which to the best of our knowledge and belief, were necessary for
the purposes of our audit and have found them to be satisfactory.
(b)
The transactions of the Bank, which have
come to our notice have been within the powers of the Bank.
(c)
The returns received from the offices and
branches of the Bank have been found adequate for the purposes of our audit.
- In our opinion, the Balance Sheet,
Profit and Loss Account and Cash Flow Statement comply with the applicable
accounting standards.
For ABC and Co.
Chartered Accountants
Signature
(Name of the Member Signing the Audit Report)
(Designation)#
Membership Number
Firm registration number
Place of Signature:
Date of Report:
# Partner
or proprietor as the case may be.
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