In June 2018, RBI had put in place an enforcement action framework in respect of statutory auditors for the lapses in the statutory audit of commercial banks.
The Reserve Bank of India (RBI) on June 3 barred S R Batliboi & Co LLP, one of India's leading chartered accountancy firms, from taking up statutory audit of commercial banks for one year on account of lapses in an audit assignment. The one-year period starts from April 1, 2019, the RBI said in a release.
In June 2018, RBI had put in place an enforcement action framework in respect of statutory auditors for the lapses in the statutory audit of commercial banks.
"...on account of the lapses identified in a statutory audit assignment carried out by the firm, M/s S.R.Batliboi & Co. LLP, Chartered Accountants, it has been decided that RBI will not approve the said firm for carrying out statutory audit assignments in commercial banks for one year starting from April 1, 2019," the release said.
It further said the action taken in the matter has been communicated to the Institute of Chartered Accountants of India (ICAI).
ICAI, which functions under the administrative control of the Ministry of Corporate Affairs, regulates the profession of chartered accountancy in the country.
The Reserve Bank release, however, did not disclose the details of the lapses by S R Batliboi & Co LLP.
