The weekly messenger | Edition 11.18

Auditing News

Advisory for the Members regarding Allocation of Work among the Joint Auditors in case of Bank Audits – 6 March 2018

The Institute of Chartered Accountants of India (ICAI) had issued a standard on auditing (SA) 299, “Responsibility of Joint Auditors” wherein it was specified that the division of work among joint auditors as well as the areas of work to be covered by all of them should be adequately documented and preferably communicated to the entity. Now, ICAI has received information from the Reserve Bank of India (RBI) that there have been certain issues between the banks’ joint auditors and the banks’ management regarding the allocation of work among the joint auditors. With respect to this matter, ICAI has advised its members that while allocating work amongst themselves, all efforts should be made that the allocation of work amongst them should be in agreement with the management of the bank and when required, the said allocation may be carried out in consultation with those charged with governance of the bank.

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GN on Audit of Banks (2018 Edition) – 11 March 2018

The ICAI has issued the revised 2018 edition of the Guidance note (GN) on Audit of Banks in order to incorporate the important developments that have taken place in the banking sector since the issue of its last edition .The GN discusses in depth the various important items such as the financial statements of banks, its peculiarities, manner of disclosure in the financial statements, the RBI prudential directions thereon, audit procedures, reporting on Long Form Audit Reports, special purpose reports and certificates, etc. The GN also contains the impact of the Master Directions, Master Circulars and other relevant circulars issued by RBI, the relevant pronouncements of the ICAI, Goods and Services Tax (GST) provisions and it also includes a new Chapter on Scrutiny of Advance Accounts presented in Indian Accounting Standards) (Ind AS) by Borrowers.

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Regulatory News

Companies (Filing of Documents and Forms in XBRL) Amendment Rules, 2018 – 8 March 2018

The Central Government has amended the Companies (Filing of Documents and Forms in Extensible Business Reporting Language (XBRL)) Rules, 2015 with the Companies (Filing of Documents and Forms in XBRL) Amendment Rules, 2018 wherein the existing Rule 3 ‘Filing of financial statements with Registrar’ has been re-numbered as Rule 3(1) and two new sub Rules i.e. Sub Rule (2) and (3) have been inserted in Rule 3
which states that the companies which have filed their financial statements under sub-rule (1) of Section 3 shall continue to file their financial statements and other documents, even though they may not fall under the class of companies specified therein in the succeeding years and the companies which have filed their financial statements under the erstwhile rules, namely the Companies (Filing of Documents and Forms in XBRL) Rules, 2011 shall continue to file their financial statements and other documents prescribed in sub-rule (1) even though, they do not fall under the class of companies specified therein.

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 Further GST Updates

The Central Board of excise and Customs has issued certain updates w.r.t. GST whose links are as follows:

• For clarification regarding taxable services provided by the member of the Joint Venture (JV) to the JV and vice versa and inter se between the members of the JV, click here.
• For information w.r.t. Rescinding notification No. 06/2018 - CT dated 23.01.2018, click here.
• For information w.r.t. Central GST (Second Amendment) Rules, 2018, click here.