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| BJP opposes move to reduce audit stronghold | | | EARLY TIMES REPORT
JAMMU, Feb 27: BJP CA cell has strongly opposed any such move that reduces the importance of audit. Such a decision will be highly detrimental for the progressive Indian economy and make the banks go ENRON & GTB way, it said. Ever since the nationalization of Indian Banks in 1969 the provision of audit of their branches by independent Chartered Accountants was statutorily created so as to ensure timely identification of irregularities and suitable corrective measures. As every one knows that banking industry is the back bone of economy of any nation and if banking system collapses the economy of the country collapses too, the role of audit by independent skilled auditors in maintaining the health of banking industry and in ensuring smooth functioning of banking systems is of utmost importance and can not be diluted.
Indian auditors helped a lot in strengthening the banking systems even in severe world wide economic recessions which wiped out even giant banks of many nations including America and Europe.
On the one hand Skilled Indian Audit system helped in timely identification of NPAs (Non Performing Assets) and their remedial measures and on the other hand it also curbed malpractices, irregularities and frauds by the corrupt officials. Due to this, hard earned money of general public gets utilized in a useful and pragmatic way for the development of Indian economy. In the current scenario, the audit report by independent auditors is the base on which the investor relies before investing. On the other hand high bank officials who acts like owners of these public banks and consider auditors as detrimental to their autonomy are constantly misleading and misguiding the govt. and RBI that auditors are not useful for their branches and are convincing them with baseless logics of burden of auditors fee or other excuses. In this context RBI has proposed to exempt those bank branches which are having total advance upto Rs. 20.00 Crores from annual statutory audit, If this decision gets implemented then about 90% bank branches will be out of the purview of audit. It is pertinent to note that majority of the bank branches have lesser advances but they are having huge deposits of public money running in many crores on which audit check is very essential as we always hear of many frauds in this segment in daily news. It is only the process of audit through which such irregularities; fraudulent activities can be curbed besides maintaining a moral check on corrupt officials. If there is no audit then there is no fear and fate of the entire banking industry will be in God's hands. |
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