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

Under Section 45MA(2) of the RBI Act, 1934, the auditor of Kaveri Capital Ltd, an NBFC, has made a report to the RBI under sub-section (1) about its deposits. What is the auditor's further obligation regarding his audit report on the company's financial statements?

The auditor must include in his audit report under the Companies Act the contents of the report he has made, or intends to make, to the RBI. Section 45MA(2) imposes this duty directly, without requiring Board approval or leaving the report out as confidential.

  1. AHe must include in his audit report the contents of the report which he has made or intends to make to the BankCorrect
  2. BHe must keep the RBI report separate and omit it from the audit report, since it is confidential to the Bank
  3. CHe must send the contents only to the depositors
  4. DHe must include it only if the Board approves it

Explanation

Section 45MA(2) states 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 under the Companies Act. The Act does not make this depend on Board approval, and the report is not kept out of the audit report.

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