Disclosures Of Profit and Loss Account
The Profit and Loss Account as set out in Form B has four broad heads:
Income
Expenditure
Profit/ Loss
Appropriations
The information to be provided under each of the above heads is also specified in the Schedule. It would be pertinent to note that knowledge of the Bank’s accounting policies is of utmost importance before verifying the items within the profit and loss account. The auditor must make enquiries with the management to ascertain whether there have been any changes in the accounting policies and also review the closing circulars issued by the controlling authorities of the Bank.