ICAI releases Manual on Concurrent Audit of Banks (2023 Edition)

The Institute of Chartered Accountants of India (ICAI) has released the 2023 edition of the Manual on Concurrent Audit of Banks.

In the Indian economic landscape, the Banking Sector holds a pivotal position, contributing significantly to the nation's development. The government has consistently prioritized enhancing banking accessibility throughout the country, employing various initiatives like Pradhan Mantri Jan Dhan Yojana and Post Payment Banks.

Additionally, pivotal reforms within the banking sector, such as the widespread adoption of digital payments, the emergence of neo-banking, the ascent of Indian NBFCs, and the rapid growth of fintech, have collectively catalyzed substantial advancements within India's financial ecosystem. These transformations have notably propelled the nation's credit cycle forward.

This evolving terrain within the banking sector has underscored the critical importance of risk management and control functions, elevating the role of concurrent auditors. Recognizing this, the Institute of Chartered Accountants of India (ICAI), through its Board of Internal Audit and Management Accounting (BIAMA), has taken the initiative to publish the 'Manual on Concurrent Audit of Banks.'

The primary objective of the manual is to furnish comprehensive guidance to the esteemed members concerning concurrent audits in the banking sector.

RBI had revised its 1996 concurrent audit guidelines and issued “Concurrent Audit System in Commercial Banks – Revision of RBI’s Guidelines” in July, 2015. These guidelines focus on effective controls, importance of checking high risk transactions and coverage of fraud prone areas. In the light of these new Guidelines, the Internal Audit Standards Board (IASB) of the Institute has thoroughly revised “Manual on Concurrent Audit of Banks (2012 edition)”, including the impact of various applicable new/ revised RBI Circulars issued during the period.

“I compliment CA. Rajendra Kumar P., Chairman, CA. Charanjot Singh Nanda, Vice Chairman, and other members of the Board of Internal Audit and Management Accounting of ICAI for bringing out this revised Manual to assist the members in maintaining quality in concurrent audit of banks.  I am confident that the members and other stakeholders would find this Manual highly useful in their professional assignments”, CA Aniket S Talati, President of the Institute of Chartered Accountants of India stated.

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