Analysis of Audited/Unaudited Bank Branches was done for the year 2012-13 to find out the impact of RBI guidelines in which Only nationalised banks of India whose advances are above Rs. 20 Crores were made subject to Bank Branch Audit.
After detailed analysis and comparison of the data with the previous year 2011-12, (when the advances of bank branches above Rs. 6 Crores were liable to be audited)we find very shocking results/figures..
In 2011-12, Total Bank Branches of all Nationalised Banks of India were 67,682 in number, out of which 72.9% were audited by the Chartered Accountants but when RBI has raised the limit from Rs. 6 Crores to Rs. 20 Crores in 2012-13, inspite the fact that 4881 branches were added in all nationlised banks of India, no. of branches audited were reduced by 28.8% to only 44.1%.
On further analysis, we find that almost 22,205 branches remained unaudited in 2012-13 resulting in axing on 11,000 practising Chartered Accountants of India. (If 2 branches/auditor is allotted)
Now, you will surprised to know that out of 25 Nationalised Banks of India, audited bank branches in 2012-13 of 18 Nationlised Banks are less than 50% of their total branches yet Auditors are certifying the financial statements claiming that financial statements gave true and fair view without bringing this fact in the knowledge of Banks shareholders/users of financial statement.
In most of the cases, it has been noticed that Statutory Auditors of Banks in their Auditor's Report, are not mentioning the fact that % audited branches had been reduced from previous year and how much branches out of total has been unaudited to present true and fair veiw to the readers of the financial statements.
So, in the end we would like to say that our Institute should ask RBI to review its decisions to reduce the limit of advances for statutory branch audit from Rs. 20 Crore, as it will not be fair to say that books give true and fair view even if more than half of its branches are not audited.
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