ICAI to review financial statements of Yes Bank

Chartered accountants' apex body ICAI will review crisis-hit Yes Bank's financial statements of the past two financial years to check whether there have been any lapses from the auditors concerned.

The ICAI's Financial Reporting Review Board (FRRB) would carry out the review in the wake of reports about alleged systemic issues regarding Yes Bank, which was placed under moratorium by the Reserve Bank last week.

The FRRB would take up the review of general purpose financial statements of Yes Bank for 2017-18 and 2018-19, the Institute of Chartered Accountants of India (ICAI) said in a statement on Wednesday.

"In case the FRRB finds any material/ serious non-compliance, it would refer the case to the Director (Discipline) of ICAI for initiating action against the auditor under the Chartered Accountants Act, 1949," it noted.

As far as the management of the enterprise is concerned, the FRRB would inform about any irregularity to the relevant regulatory body.

"In case non-compliances observed are not material and do not affect the true and fair view of financial statements, the FRRB would appropriately bring the non-compliance to the attention of the auditor," the statement said.

The FRRB reviews the general purpose financial statements of various enterprises to determine compliance with the reporting requirements of various applicable statutes, accounting standards and standards on auditing.

On March 5, the Reserve Bank of India (RBI) in consultation with the government put a moratorium on Yes Bank till April 3, citing serious financial mismanagement at the private sector lender. During this period, customers are not allowed to withdraw more than Rs 50,000 from an account.