The bank audit extravagance

Abstract

PSB audits have become an important source of income for many auditors. But do the banks benefit from these audits?. The new president of the Institute of Chartered Accountants of India (ICAI), M Devaraja Reddy, recently said that the system of appointment of bank auditors is to blame for the problem of rising non-performing assets (NPA) and low audit quality. He proposed a three-point solution: 1. The Reserve Bank of India or the Comptroller and Auditor-General of India should appoint bank auditors. 2. Banks should have multiple auditors instead of one or two. 3. Banks should do more branch audits. The ICAI president was being either naïve or disingenuous. But I thank him for starting an important debate. Read more at: https://www.thehindubusinessline.com/opinion/the-bank-audit-extravagance/article8437988.ece