The Reserve Bank of India (RBI), the country’s central bank, has issued a statement saying that it will not approve EY member firm SR Batliboi & Co for ‘carrying out statutory audit assignments in commercial banks for one year starting from 1 April 2019’.
The RBI said the action had been taken ‘on account of the lapses identified in a statutory audit assignment carried out by the firm’. The action marks only the first time the Indian central bank has taken such a step since setting out a graded enforcement action framework in June 2018 in respect of statutory auditors for lapses in the statutory audit of commercial banks.
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Local press reports mentioned issues over bad debt reporting by Indian banks in 2015-2016, with Business Standard citing Axis Bank and Yes Bank while The Economic Times mentioned Yes Bank.
The Reserve Bank said that the action taken against SR Batliboi & Co had been communicated to the Institute of Chartered Accountants of India.
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By GlobalData
