Reliance on / review of other reports
The auditor should take into account the adverse comments, if any, on advances appearing in the following:
Previous audit reports.
Latest internal inspection reports of bank officials.
Reserve Bank’s latest inspection Report/Asset Quality Review/ Risk Based Supervision report.
Concurrent /internal audit report.
Report on verification of security.
Any other internal reports specially related to particular accounts.
Manager’s charge-handing-over report when incumbent is changed.
The above reports should be reviewed in detail. The Statutory Central Auditors must review the Annual Financial Inspection report of RBI relating to the bank and should check whether the variations in provisions, etc., reported by RBI have been properly considered by the bank management.