Banks are backbone of Indian economy. According to section 29 of the banking regulation act, 1949 every bank has to prepare Balance Sheet and Profit and Loss Account every year as per third schedule of the act.  In India, statutory audit of bank branch is according to Banking Regulations Act, 1949. Beyond the statutory audit and furnishing a report pursuant thereto, RBI requires the banks to obtain, a Long Form Audit Report (LFAR) and also a Tax Audit Report under Section 44AB of the Income tax Act 1961 with certain validations /certificates. All Standards on Auditing (SA) for the audit are equally applicable to Bank.  Statutory Audit Report and LFAR are two independent and different Audit Reports and cross-referencing for any qualifications should not be done. The Guidance Note on Bank Audit, 2019 provides detailed guidance to the bank auditors.  Every year the Guidance Note is updated by ICAI. All the banks have equipped with technology and have switched over to fully computerized environment. The following points to be consider during audit of bank branch. 1. Engagement letter. 2. Letter for NOC to previous auditors. 3. Meeting and discussion with the bank branch management. 4. Review of previous year's audit report/ LFAR, current period's Internal Audit/concurrent Audit Report. 5. Physical verification of cash, unused DD etc and valuable securities. 6. Compliance of instructions issued by bank’s circulars and other notifications issued by RBI, significant accounting policies of the bank, Mandatory Accounting Standards/Auditing Standards. 7. Checking of the advances. 8. Loan Accounts (Non Performing). 9. Checking of additions/deduction/transfers and Depreciation of fixed assets, Compliance of Accounting Standard (AS)-6, AS10, AS 26 and AS28 related to fixed assets. 10. Scrutiny of Balance sheet and Profit & Loss Account.

KEYWORDS:  Auditing Standards, Guidance Note, LFAR, Statutory Audit Report, Third Schedule.