ICAI

Allocation of Work among Joint Auditors in Bank Audits-ICAI Advisory

Allocation of Work among Joint Auditors in Bank Audits-ICAI Advisory

In view of the ensuing audit of the banks for the Financial Year 2017-18, the Institute of Chartered Accountants of India (ICAI) has issued an advisory for its chartered accountant members regarding allocation of Work among the Joint Auditors in Bank Audits.

As per the advisory issued today, ICAI has invited attention of the members to Standard on Auditing (SA) 299, “Responsibility of Joint Auditors” which, regarding the allocation of work among the joint auditors, SA 299 provides as under:

“Division of Work

2.  Where joint auditors are appointed, they should, by mutual discussion, divide the audit work among themselves. The division of work would usually be in terms of audit of identifiable units or specified areas. In some cases, due to the nature of the business of the entity under audit, such a division of work may not be possible. In such situations, the division of work may be with reference to items of assets or liabilities or income or expenditure or with reference to periods of time. Certain areas of work, owing to their importance or owing to the nature of the work involved, would often not be divided and would be covered by all the joint auditors.

3.  The division of work among joint auditors as well as the areas of work to be covered by all of them should be adequately documented and preferably communicated to the entity.”

ICAI has informed that as per information received from RBI, there have been certain issues between the banks’ joint auditors and the banks’ management regarding the allocation of work among the joint auditors. 

In view of the above, the ICAI has advised its members that while allocating work amongst themselves, all efforts should be made that the allocation of work amongst them should be in agreement with the management of the bank. When so required, the said allocation may be carried out in consultation with those charged with governance of the bank.

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