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CA Final · Advanced Auditing, Assurance and Professional Ethics · Special Features of Audit of Banks & Non-Banking Financial Companies

Kaveri Capital Ltd, an NBFC, is audited by CA Rohan. He has made a report to the RBI under Section 45MA(1) on the aggregate deposits held. He is now drafting the audit report to members. What does Section 45MA(2) require?

The auditor must include in the audit report the contents of the report made, or intended to be made, to the RBI under Section 45MA(1). Section 45MA(2) requires the contents themselves to be included, so omitting them or only mentioning that a report exists falls short.

  1. AOmit the contents, as they are confidential to the RBI
  2. BInclude in his audit report the contents of the report made or intended to be made to the BankCorrect
  3. CSend the audit report to the RBI instead of the members
  4. DMention only that a report was made, without giving its contents

Explanation

Section 45MA(2) says that where the auditor has made or intends to make a report to the Bank under sub-section (1), he shall include the contents of that report in his audit report. Merely noting that a report exists, or omitting it, does not comply.

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