Reserve Bank of India to take action against erring bank auditors

Any action taken on an audit firm, including serving a caution notice, will be communicated to the ICAI, and such communication will be placed in the public domain by RBI

The Reserve Bank of India (RBI) has decided to crack the whip on banks’ statutory auditors whose certification of banks’ books has later been found to have lapses.
 
“In the interest of improving audit quality and with a view to instituting a transparent mechanism to examine accountability of statutory auditors (SA) in a consistent manner, it has been decided to put in place a graded enforcement action framework to enable appropriate action by the RBI in respect of the banks’ SAs for any lapses observed in conducting a bank’s statutory audit,” the central bank said in a notification on