1. SRI VASAVI CHARITABLE TRUST BANGALORE
SPECIAL PURPOSE REPORTS AND CERTIFICATES
CA S Ananda Krishna

2. In addition to their audit reports, the SBAs and SCAs may also be required by their terms of engagement or statutory or regulatory requirements to issue other reports or certificates. These Certificates and Reports are required under different statues by the Auditee.

3. Report on whether the income recognition, asset classification
Long Form Audit Report for Branch.
Report on whether the income recognition, asset classification
and provisioning have been made as per the guidelines issued
by the RBI from time to time.
Report on audit of DICGC items, wherein auditors have to
specifically verify and certify the correctness of the data in
various returns and the insurance premiums paid to DICGC.
Report on status of the compliance by the bank with regard to
the implementation of recommendations of the Ghosh
Committee relating to frauds and malpractices and of the
recommendations of the Jilani Committee on internal control
and inspection/credit system.
Certificate for Prime Minister Rozgar Yojna for Unemployed
Youth.

4. Certificate of cash and bank balances.
Certificate relating to MOC entries of the previous years being
accounted for.
Certificate relating to credit/ deposit ratio.
Certification of technology up gradation fund scheme (TUFS) –
non SSI textile centre.
Certification for advances to infrastructure project and income
generated thereon.
Statement of accounts Re-structured/ Re-scheduled/ Re-
negotiated related to CDR and non-CDR accounts.
Certificate of advances exceeding Rs.10 Crores.
Certificate regarding Special Deposit Scheme, 1975.

5. Certificate regarding Compulsory Deposit (Income-tax Payers)
Scheme, 1974.
Certificate relating to recoveries in claim paid accounts under
Small Loans Guarantee Scheme 1971/Small Loans (SSI)
Guarantee Scheme, 1981.
Certification of Borrowal Companies by Chartered
Accountants/Company Secretaries (as per RBI circular on
“Lending under Consortium Arrangements/ Multiple banking
Arrangements” dated December 08, 2008.
Certificate on Capital Adequacy
Certificate for Gold Stocks held for Sale of Gold/Metal Gold
Loans.
Certificate for Gold Coins Held.
Certificate for Gold Deposit Scheme.

6. Non-Performing Investments.
Certificate for IRAC Status of Credit Exposure in respect of
Non-Performing Investments.
Certificates for IRAC Status of Credit Exposure in respect of
borrowers having exposure with foreign offices.
Certificate for agricultural interest subvention for
residual period of repayment of the loans disbursed during
Financial Year.
disbursements made during Financial Year.
Certificate for additional interest subvention
for prompt repayment for short term production loans
disbursed during Financial Year.

7. Certain other certificates as may be prescribed by the
concerned bank in their respective closing instructions or
appointment letters.
Certificate on Un-hedged Foreign Currency Exposure in
case of Borrowal having exposure of 1crore or more.
Certificate on exposure to sensitive sectors, i.e. exposure to
Capital Market, Infrastructure & Real Estate Sector.

8. Recommendations/Guidelines for Reports and Certificates

9. understanding of the scope and nature of the terms
(a) Reporting auditor should have a clear
understanding of the scope and nature of the terms
of his assignment; it is desirable for the auditor to
obtain the terms in writing to avoid any
misunderstanding.
(b) In many cases, a reporting auditor can choose the
form and contents of the report or certificate. In
other cases the form and contents of the report or
certificate are specified by statute or notification
and cannot be changed

10. (c) Where a reporting auditor is free to draft his report or
certificate, auditor should consider the following:
Specific elements, accounts or items covered by the report or
certificate should be clearly identified and indicated.
(ii) The report or certificate should indicate the manner in which
the audit was conducted, e.g., by the application of generally
accepted auditing practices, or any other specific tests.
(iii) If the report or certificate is subject to any limitations in
scope, such limitations should be clearly mentioned.
(iv) Assumptions on which the special purpose statement is based
should be clearly indicated if they are fundamental to the
appreciation of the statement.
(v) Reference to the information and explanations obtained
should be included in the report or certificate. In certain
cases, apart from a general reference to information and
explanations obtained, a reporting auditor may also find it
necessary to refer in his report or certificate to specific
information or explanations on which auditor has relied.

11. its nature, i.e., whether it is a report or a certificate.
(vi) The title of the report or certificate should clearly indicate
its nature, i.e., whether it is a report or a certificate.
Similarly, the language should be unambiguous, i.e., it
should clearly bring out whether the reporting auditor is
expressing an opinion (as in the case of a report) or whether
auditor is only confirming the accuracy of certain facts (as
in the case of a certificate). For this, the choice of
appropriate words and phrases is important.
If the special purpose statement is based on general purpose financial statements, the report or certificate should contain a reference to such financial statements. However, the report or certificate should not contain a reference to any other statement unless the same is attached therewith. It should be clearly indicated whether or not the statutory audit of the general purpose financial statements has been completed and also, whether such audit has been conducted by the reporting auditor or by another auditor.

12. In case the general purpose financial statements have been
audited by another auditor, the reporting auditor should
specify the extent to which it has been relied upon. Auditor
may communicate with the other auditors for securing their
cooperation and in appropriate circumstances, discuss
relevant matters with them, if possible.
(viii) Where a report requires the interpretation of a statute, the
reporting auditor should clearly indicate the fact that
auditor is merely expressing his opinion in the matter.
Auditor should take sufficient care to ensure that in
respect of matters which are capable of more than one
interpretation; Auditors report is not misconstrued as
representing a settled legal position.
An audit report or certificate should ordinarily be a self-
contained document. It should not confine itself to a mere reference to

13. (d) In certain cases, the form and contents of the report or
certificate, as prescribed by a statute or a notification,
may not be appropriate or adequate. In such situations, the
reporting auditor may consider modifying the report or
certificate on the basis of the suggestions made earlier, to
the extent applicable. In case this is not possible, auditor
should clearly indicate the limitations in the report or
certificate.
(e) Where a special purpose engagement is undertaken after the
statutory audit has been completed, a reporting auditor
should invariably review the statutory audit report to
ascertain whether there are any matters which have a
bearing on the report or certificate.
(f) In cases, where a reporting auditor is required to report or
certify certain specific matters arising from the financial
statements taken as a whole, auditor should not normally
issue the report or certificate until the statutory audit has
been completed.

14. Where an audit report or certificate is required before the statutory audit is completed, a reporting auditor should clearly state in the audit report or certificate that auditor is reporting on or certifying specific matters arising out of the financial statements of the enterprise, the statutory audit of which has not been completed.
(g) Where the reporting auditor prepares the report or
certificate on the basis of duly audited general purpose
financial statements auditor may take the following
precautions:
Auditor may clearly state in the report or certificate that the figures from the audited general purpose financial statements have been used and relied upon.
(ii) Auditor may include in the report or certificate a statement
showing the reconciliation between the figures in the
general purpose financial statements and the figures
appearing in the report or certificate.

15. Other Aspects

16. Relevant Standard on Auditing (SAs) for Bank Audit :
SA 210 : Agreeing the terms of Audit Engagement
SA 220 : Quality Control for an Audit of Financial Statements
SA 240 : The Auditor’s Responsibilities Relating to fraud in an
Audit of Financial Statements.
SA 299 : Responsibility of Joint Auditors
SA 300 : Planning an audit of Financial Statements
SA 315 : Identifying and Assessing the Risks of Material
Misstatement Through understanding the Entity and its
Environment.
SA 320 : Materiality in Planning and Performing an audit.

17. SA 402 : Audit considerations Relating to an entity using a
service organisation.
SA 450 : Evaluation of Misstatements Identified during the
audit.
SA 600 : Using the work of Another Auditor.
SA 700 : Forming an opinion and Reporting on financial
statements.
SA 705 : Modifications to the opinion in the Independent
Auditor’s Report.
SA 706 : Emphasis of Matter Paragraphs and Other Matter
Paragraphs in the Independent Auditor’s Report.

18. The auditors, central as well as branch, should also ensure that the audit report issued by them complies with the requirements of SA 700(Revised), “Forming an Opinion and Reporting on Financial Statements”, SA 701, “Communicating Key Audit Matters in the Independent Auditor’s Report” and where required with the SA 705(Revised), “Modifications to the Opinion in the Independent Auditor’s Report” and/or SA 706(Revised), “Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report”, as may be applicable. ICAI has revised SA 700, 701, 705 and 706 on 17th May, 2016 which will be effective for audits of financial statements for periods beginning on or after 1st April, 2018.
In accordance with the Announcement issued by the ICAI, the bank branch auditors need to mention the total number of debits/ credits and amounts in the Memorandum of Changes submitted by them, under the Other Matters Paragraph in the their audit report. the information. In respect of Memorandum of Changes (MoC) under the "Other Matters Paragraph“ would include both such MoCs which have been accepted as well as those not accepted by the bank branch management,
If an accounting professional, whether in the course of internal or external audit or in the process of institutional audit finds anything susceptible to be fraud or fraudulent activity or act of excess power or smell any foul play in any transaction, he should refer the matter to the regulator. Any deliberate failure on the part of the auditor should render himself liable for action”.

19. Accounts Closing Instructions. Issued by HO.

20. M/s . S.R.R.K. Sharma Associates E-mail: sak.ca1988@gmail.com
THANK YOU
CA.S.ANANDA KRISHNA
Partner :
M/s . S.R.R.K. Sharma Associates
BENGALURU