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Engagement of Chartered Accountancy Firms by Public Sector Banks in India
PSBs Employed Over 13,000 CA Firms in F.Y. 2022-23, Reveals Lok Sabha Query Response
PSBs Employed Over 13,000 CA Firms in F.Y. 2022-23, Reveals Lok Sabha Query Response
In response to queries raised in the Lok Sabha, the Minister of State in the Ministry of Finance disclosed that Public Sector Banks (PSBs) engaged the services of more than 13,000 Chartered Accountancy (CA) firms in the financial year 2022-23. The queries addressed included the engagement of CA firms for Concurrent Audit, Internal Audit, and Stock Audits in Nationalised Banks, to which the minister clarified that the government does not engage CA firms for these audits in PSBs. Additionally, the minister elaborated on the RBI’s mandate for banks to have their own Board-approved policy for concurrent audits, covering various aspects. The data provided also revealed a decreasing trend in the number of CA firms engaged by PSBs over the last three financial years.
Key Takeaways:
- Over 13,000 Chartered Accountancy (CA) firms were employed by Public Sector Banks (PSBs) in the financial year 2022-23, comprising 61 Statutory Central Auditors (SCAs) and 13,053 Statutory Branch Auditors (SBAs).
- The government does not engage CA firms for Concurrent Audit, Internal Audit, and Stock Audits in PSBs, as clarified in the Lok Sabha query response.
- The Reserve Bank of India (RBI) has mandated that banks should have their own Board-approved policy for concurrent audits, covering various aspects such as the scope of work and coverage of business/branches.
- There has been a decreasing trend in the number of CA firms engaged by PSBs over the last three financial years, with 18,884 CA firms engaged in 2020-21, decreasing to 16,460 in 2021-22, and further decreasing to 13,114 in 2022-23.
Synopsis:
The engagement of Chartered Accountancy (CA) firms by Public Sector Banks (PSBs) in India, along with the specific numbers of Statutory Central Auditors (SCAs) and Statutory Branch Auditors (SBAs) engaged in the financial years 2020-21, 2021-22, and 2022-23. Here’s a breakdown of the information you’ve shared:
Engagement of CA Firms by PSBs:
- In the financial year 2022-23, PSBs employed a total of 13,114 CA firms, comprising 61 SCAs and 13,053 SBAs.
- The engagement of CA firms for Concurrent Audit, Internal Audit, and Stock Audits in Nationalised Banks was addressed in the Lok Sabha, where it was clarified that the government does not engage CA firms for these audits in PSBs.
- The Reserve Bank of India (RBI) has mandated that banks should have their own Board-approved policy for concurrent audits, covering various aspects such as the scope of work and coverage of business/branches.
- The minister clarified that the RBI has not issued any instruction advising PSBs not to conduct concurrent audits for banks with turnovers below Rs. 40 crore per year.
Trends in Engagement of CA Firms:
The data above shows a decrease in the number of CA firms engaged by PSBs over the last three years. In the financial year 2020-21, the total CA firms engaged were 18,884, which decreased to 16,460 in 2021-22, and further decreased to 13,114 in 2022-23.
This information provides insights into the engagement of CA firms by PSBs and the trends observed over the last three financial years.
FAQ:
Q1: How many CA firms were employed by PSBs in the financial year 2022-23?
A1: PSBs employed a total of 13,114 CA firms, comprising 61 Statutory Central Auditors (SCAs) and 13,053 Statutory Branch Auditors (SBAs) in the financial year 2022-23.
Q2: What is the government’s stance on engaging CA firms for Concurrent Audit, Internal Audit, and Stock Audits in PSBs?
A2: The government does not engage CA firms for these audits in Public Sector Banks, as clarified in the Lok Sabha query response.
