## Auditor's Report for Nationalised Banks
### Report to the Central Government
For a nationalised bank (and SBI), the auditor must report to the Central Government — not shareholders — on four points:
| Point | What Must Be Stated |
|---|---|
| (a) True & Fair View | Whether the financial statements present a true and fair view; and if explanations were called for, whether they were given and whether satisfactory |
| (b) Transactions within Powers | Whether transactions that came to the auditor's notice were within the bank's powers |
| (c) Adequacy of Returns | Whether returns received from branches and offices were adequate for the purpose of audit |
| (d) Any Other Matter | Any matter the auditor considers should be brought to the Central Government's notice |
> Note: The SBI auditor's report follows almost the same format.
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### Format of Report — Key Requirements
1. SA Compliance: Both central and branch auditors must ensure the audit report complies with Standards on Auditing (especially those covered in the chapter on Audit Reports).
2. Unaudited Branches Disclosure: Not just the number of unaudited branches — but also quantification of:
- Advances
- Deposits
- Interest income
- Interest expense
…for those unaudited branches.
3. Section 143, Companies Act 2013: The bank auditor must also report matters covered under Section 143 of the Companies Act, 2013.
4. CARO 2020 Not Applicable: The Companies (Auditor's Report) Order, 2020 does not apply to a banking company as defined under Section 5(c) of the Banking Regulation Act, 1949.