Page 283 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
maintained.
Post-Balance Sheet Collections: Examine collections made subsequent to the date of the balance sheet to
obtain further evidence about the existence and completeness of bills for collection as on the date of Balance
Sheet.
Procedure for Crediting Party: Examine the procedure for crediting the party on whose behalf a bill has been
collected. Confirm that this procedure is in consonance with the nature of obligations of the bank in respect of
bills for collection.
Commission
Examine that adequate internal controls exist that debits the customer’s account with the amount of bank’s
commission as soon as a bill collected is credited to the customer’s account. The auditor should also examine
that no income has been accrued in the accounts in respect of bills outstanding on the balance sheet date.

(CNO-BA.580) Auditor's Report
Format-
- SA 700 Compliance: The auditors, central as well as branch, should also ensure that the audit report issued
by them complies with the requirements of SA 700, “Forming an Opinion and Reporting on Financial
Statements”.
- SA 705 Compliance: The audit report should also comply with SA 705, “Modifications to the Opinion in the
Independent Auditor’s Report”.
- SA 706 Compliance: It should meet the standards of SA 706, “Emphasis of Matter Paragraphs and Other
Matter Paragraphs in the Independent Auditor’s Report”.
- SA 710 Compliance: The audit report must also be in line with SA 710, “Comparative Information-
Corresponding Figures and Comparative Financial Statements”.
- SA 720 Compliance: The report should adhere to SA 720, The Auditor’s Responsibility Relating to Other
Information in Documents Containing Audited Financial Statements.

Unaudited Branches-
- Information Disclosure: The auditor should ensure that not only information relating to the number of
unaudited branches is given.
- Quantification: Quantification of advances, deposits, interest income, and interest expense for such
unaudited branches has also been disclosed in the audit report.
- International Trends: Such disclosure in the audit report is not only in accordance with the best
international trends.
- Useful Information: It also provides useful information to users of financial statements.

Matters for SBI & Nationalised Banks-
- Auditor's Report: In the case of a nationalised bank, the auditor is required to make a report to the Central
Government.
- SBI Report: The report of auditors of State Bank of India is also to be made to the Central Government and
is almost identical to the auditor’s report in the case of a nationalised bank.
- Transactions: Whether or not the transactions of the company which have come to his notice have been
within the powers of the company.
- Return from Branches: Whether or not the returns received from the offices and branches of the bank have
been found adequate for the purpose of his audit.
- B/S : Whether, in his opinion, the balance sheet is a full and fair balance sheet containing all the necessary
particulars and is properly drawn up so as to exhibit a true and fair view of the affairs of the bank.
- Profit/Loss Account: Whether the profit and loss account shows a true balance of profit or loss for the
period covered by such account.
- Information & Explanation: Whether or not the information and explanations required by him have been

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