RBI POLICY FOR APPOINTMENT OF SCA & BRANCH AUDITORS

I)  Eligible Audit Firms 

 For year 2009-10: 

The list of eligible audit firms will be provided by RBI 

For Year 2010-11 and Onwards: 

Bank will obtain the names of eligible audit firms  directly from the Institute of 

Chartered Accountants of India for selecting the audit firms for Branch Audit. 

II)  Procedure for selection of Audit Firms for Branch Audit  

A committee consisting of Departmental Head and two other officials of H.O 

Accounts & Audit Department will select the names of the audit firms for Branch 

Audit. While selecting the names of Audit Firms, the following criteria will be 

considered: 

a) The office of the Audit Firm to be preferably in or around the branches to 

be audited so as to keep close liaison & keep the expenditure on TA/DA at 

minimum level. In case local auditors are not available, auditors from the 

nearby districts within the State/ adjoining States/ other States will be 

considered. 

b) There should be a suitable mix of various categories of auditors / audit 

firms keeping in view the size of the branches to be audited.

III)  Irrevocable consent 

Irrevocable consent to be obtained from the Audit Firm in writing for 

consideration of appointment in our bank for the particular year and for the C:\Documents and Settings\psb_user\Desktop\I.T.deptt for website load.doc 

subsequent continuing years. The consent given by an audit firm will be treated as 

irrevocable and request, if any, from audit firms for changing the bank, after 

having given its consent is not to be entertained.

IV)  Tenure 

 SBA Firm will have tenure of four years. 

V)  Number of assignment 

 One Audit firm can take up audit assignment  in one Public Sector Bank only  

VI)  Allocation of branches 

i) No distinction will be made between the continuing  auditors and the 

fresh auditors. 

ii) Bank will allot branches, to the extent possible, to the audit firms 

taking consideration their category of the firm. 

iii) Local auditors will be preferred for branch audit.  Among local auditors 

preference will be given category wise.  In case local auditors are not 

available, auditors from the nearby districts within the State/adjoining 

States/other States will be considered for audit. 

iv) Bank will give assignment to all the auditors approved/considered for 

appointment. 

VII)  Maximum Number of branches to be audited  

Not more than three (3) branches (irrespective of the size) will be allotted to each 

of the branch auditors.   

VIII) Relinquish the Internal assignments, if any 

At the time of appointment of an audit firm as Statutory Branch Auditor of the 

bank for the current year, all the internal assignments in our bank, if any, will  

stand withdrawn, in the event of acceptance of the  appointment as Statutory 

Auditor of the Bank.

IX) Redressal of grievances  

General Manager (Accounts) will dispose off grievances/ complaints (if any) with 

regard to the selection of Statutory Central Auditors or Statutory Branch Auditors.