Role and responsibilities of the central auditor :
Based on the information received from the bank, the statutory central auditor would:
Need to review whether there is clear segregation of work to be undertaken at central level and branch level under the bank’s IT system for accounting of transactions.
Consider the need for sending a detailed note to the branch auditors explaining their roles and responsibilities in the light of what is stated
above.
Review whether access to primary and subsidiary records is provided and use of data analysis tools is allowed at central and branch level.
Perform test of controls and substantive checking of sample transactions at the central level and if required, share the results with the branch
auditors.
Based on the work undertaken, identify key issues to be taken up with the Audit Committee and the Board of the bank.
Consider whether the significant adverse observations in the periodic system audit reports need to be shared with the branch auditors and also
be considered while framing the opinion of true and fair view of the financial statements of the bank.