RBI/2008-09/ 335
Ref.DBS.ARS.No.BC. 02/ 08.91.001/ 2008-09
December 31, 2008
All Scheduled Commercial Banks
Dear Sir/ Madam,
Internal assignments in banks by statutory auditors
We invite a reference to RBI circular DBOD.No.App.BC.118/C.452(K)-89 dated April
22, 1989, wherein it was clarified to banks that any audit firm which has been
assigned internal audit assignments during a financial year should not be
considered for statutory audit assignments during that year and the following
year.
- The issue relating to the internal assignments allotted to the audit firms at
the time of their appointment as statutory auditors has been examined afresh and
it has been decided as under:
“Audit firms should not undertake statutory audit assignment while they are
associated with internal assignments in the bank during the same year. In case
the firms are associated with internal assignment it should be ensured that they
relinquish the internal assignment before accepting the statutory audit
assignment during the year.”
- The above instructions may be implemented with immediate effect.
- Please acknowledge receipt.
Yours faithfully,
(P.S. Sharma)
General Manager