CA Final · Advanced Auditing, Assurance and Professional Ethics · Special Features of Audit of Banks & Non-Banking Financial Companies
Gangotri Finance Ltd, a deposit-accepting NBFC, is audited by CA Meera. During the audit she finds that the company did not furnish to the RBI certain statements and particulars about deposits it had received, which the Reserve Bank of India Act requires it to furnish. Meera is not satisfied that the required statements were furnished. What is the correct action for Meera under the RBI Act, 1934?
Meera must make a report to the RBI giving the aggregate amount of deposits held by the NBFC, because she is not satisfied that the required deposit statements were furnished. Section 45MA(1) places this duty on the auditor, and it does not depend on any prior request from the RBI.
- AMake a report to the RBI giving the aggregate amount of deposits held by the NBFCCorrect
- BOnly mention the matter orally to the audit committee and take no further step
- CWait for the RBI to ask for the information before reporting
- DReport to the Registrar of Companies in place of the RBI
Explanation
Under section 45MA(1), the auditor must inquire whether the required deposit statements were furnished to the Bank. Unless satisfied that they were, the auditor must report to the Bank the aggregate amount of deposits held. Waiting for a RBI request or reporting only internally does not meet this duty.
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