Members may be aware that the Government had written a letter to the Chairmen of Public Sector Banks in the month of December, 2005. As per the letter, an option was given to the Boards of the PSBs to appoint Central and Branch Auditors on their own, using the panels prepared by the C&AG and the ICAI. The prescriptions of the RBI including those on Auditors’ fees would however, have to be adhered to.
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| In response to the above mentioned letter, the Institute had immediately registered a protest with the Government on the 22nd of December, 2005. This was followed by a letter from the President to the Government with copies to all the concerned Authorities pointing out the various issues that can arise if this option is extended to Bank Boards and specifically drawing attention to the possibility of impairment of independence of auditors. The matter has also been taken up directly with other Regulators concerned. |
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| The text of the President’s letter is available on the link given below: |
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