1.8 Query
Member’s Duties and Responsibilities as an Internal Auditor—2.
For the present I am engaged in ‘X’ Bank, as Internal Auditor. In our Bank there is one other post namely that of Inspector of Branches. The Board of this Bank has decided that I should visit the branches of this Bank only once in a year for the audit of Accounts for the half-year ending on 30th June and that the Inspector of Branches should carry out the Inspection and Audit of all the Branches for the half year ending on 31st December, every year. Here I would like to clarify that our Bank has not obtained any type of exemption for Branch Audit as required by the Companies Act. Can the Bank restrict my field of work in this way? Should I raise any objection for the same? One more thing that requires a special mention is that the checking of and the scrutiny of Loan section and Loan returns is entrusted to the Inspector of Branches, he being my senior. Under these circumstances, I would like to know whether this affects my position, being a member of the Institute. Is there any type of encroachment on my rights and responsibilities under the provisions of the Chartered Accountants Act? Can I be held responsible for any negligence on the part of the said Inspector doing the major work of checking etc.?
Opinion July 7, 1962
It is noted that the Bank has not obtained any exemption from branch audit as required by the Companies Act. It is therefore obvious that the Bank has made proper arrangements to have the branches audited by independent auditors as required by the Companies Act, 1956. In view of this the member’s duties and responsibilities as Internal Auditor of the Bank are purely governed by the terms of his employment. The employer is entitled to lay down the exact scope of his duties and responsibilities and the member has no further rights other than those conferred upon him by the Bank in the particular circumstances. _______________________
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