Plot No.F2, Hanuman Nagar,
Chaitanyapuri, Hyderabad – 500 060
In line with Reserve Bank of India guidelines and also to have prudent functioning of the Bank, the Bank shall have a properly approved Statutory Audit Policy and Appointment Procedure for Statutory Auditors in place. As per RBI Ref.No.DOS.CO.ARG/SEC.01/08.91.001/2021-22 Dated 27TH April 2021, a policy is to be created by the Bank setting out the terms and conditions for Statutory Audit and Appointment and to be kept on bank’s official web site and Notice Board of the Bank.
POLICY APPROVED BY THE BOARD FOR STATUTORY AUDIT:
-The Statutory Audit is to be done for the Balance Sheet and Profit & Loss Account for the Financial Year.
-The Auditors should express an opinion on the financial statements based on audit. Audit should be conducted in accordance with the standards on auditing issued by the Institute of Chartered Accountants of India. 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 judgement 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 society’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 estimate made by the management, as well as evaluating over all presentation of the financial statements.
-The accounting period is from 1st April to 31st March.
-Auditor has to verify Receipts & Payments, Profit & Loss Account and Assets and Liabilities
-Auditor has to verify the Bank accounts, Investments in Government securities and other Banks, and in other non SLR investments.
-Auditor has to verify the depositors accounts, loan accounts, Asset classification and NPA provision, Furniture and fixtures and depreciation provided/to be provided, Provident fund of staff, income tax and TDS procedure
-Auditor has to verify the findings of Audit committee and concurrent auditors
-Auditor has to give their finding in Long Form audit report, Certificate and Grading of the audit
-After completion of statutory audit, the Management and Board will examine and give further directions for rectification.
STATUTORY AUDITOR APPOINTMENT PROCEDURE:
The terms and conditions are as follows:
1) The appointment will be for a period of 3 years
2) There should be minimum 2 full time partners (exclusive association) qualified Chartered Accountants and should continue to be Members of ICAI
3) The firm should have experience of 6 years
4) The firm should have 8 members of professional staff – (on-site audit article clerks with knowledge of book keeping/Accountancy) with continuous association with the firm
5) They should have knowledge of functioning of urban cooperative banks.
6) Their work should be transparent
7) They should be produce eligibility certificate in the proforma prescribed by RBI.
Such of those firms fulfilling the above criteria shall apply to the Bank for consideration. Board will fix reasonable remuneration and other expenses, subject to a maximum of approximately Rs.2.00 lakh per annum, depending on the income of the Bank and merits of the firm. Such applications will be forwarded to for approval by the Reserve Bank of India.
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