2024-07-11 10:47:51
The registered auditor will inform the central bank in the form of a special report if the banks inflate or inflate profits by resorting to fraud. Besides, the auditor will also submit a final report to the central bank on whether the risk has been properly assessed before the bank’s investment in the stock market. These things have been mentioned in the Bank Company External Audit Rules, 2024. Which will be effective from the audit year 2025.
It is stated in the external audit regulations, for the purpose of carrying out financial audits of bank companies, these external audit regulations have been made to define the terms and conditions of selection of professional and efficient external auditors and the scope of external audit, to specify the audit reports, and to confirm the actual financial status of the bank in the financial reports.
According to the policy, from now on, 80 percent of the total risk assets of the country’s banks must be audited. Besides, interim audit will be done on the 9 months activities. This interim audit report should be prepared only for submission to Bangladesh Bank. Irregularities in loan classification will also be audited by the inspection body. Through this audit, the auditing firm will identify the assets, classification of investments, provisions held against it and other issues. In addition to interim and special reports, audit institutions can prepare management reports and final reports.
According to the new policy of Bangladesh Bank, an audit firm cannot audit a bank for more than three consecutive years. Another audit firm can be appointed for six years in two phases of three years each. No person related to the concerned bank, any agent or representative related to the bank or any person related to the interests of the bank shall not be an auditor or a member of the audit team.
According to the policy, the audit institute will prepare the audit report of the bank based on 9 months. Irregularities in loan classification and provisioning of security against loans, irregularities in data or documents submitted to Bangladesh Bank by the concerned bank, whether information on defaulted loans has been submitted to Bangladesh Bank’s Credit Information Bureau or CIB on time or not, asset-investment classification and On the contrary, if there is any irregularity in provisioning, it will be identified and submitted to Bangladesh Bank.
In addition to interim, regular reports, audit institutions can also prepare special reports in special circumstances. In any case, this special report has to be prepared, it has been specified in the policy.
Violation of any section of the Bank Companies Act, commission of any criminal offense related to dishonesty and fraud, reserve capital of the bank falls below 50 percent of the required capital of the bank, breach of creditor’s assurance of payment of dues, occurrence of any serious financial irregularities or default of creditor. If there is any doubt about whether the assets of the bank are sufficient or not, the inspection organization will inform Bangladesh Bank through a special report.
In addition, irregularities in the monitoring of applications for export incentives, export subsidies, cash assistance; collect all applicable revenues and deposit them in the government treasury in accordance with prevailing laws and regulations of the country; Adequate adjustment of nostro accounts as per Central Bank instructions; The report of the audit institute will also show about the errors in the good governance system of the bank.
The auditor will also highlight in the audit report whether the bank has correctly sent the loan default information to the CIB of the Central Bank.
The auditor will present in the audit report whether the amount of the bank’s investment in the bank’s subsidiary institutions and the stock market is in accordance with the rules and whether the rules and regulations have been followed and calculated in terms of risk assessment, operating expenses and asset purchase before investment.