Question ID :
Quantum of Advances to be considered for Bank Audit Fee
We have conducted Branch Audit of a Public Sector Bank in the month of April 2018, for which the quantum of Advances certified by us was in the slab of "Above 30 crore and up to 50 crore ".
Accordingly, we have raised a bill for fees with basic audit fee at Rs.1,20,750/-
Against this bill we have received an amount of Rs.79,350/= as basic audit fee in the slab of "Above 20 crore and up to 30 crore"
On inquiry with the bank Head Office, we were informed that there is technical write offs and hence the quantum of advances have reduced and falling in the slab of "Above 20 crore and up to 30 crore" from slab of "Above 30 crore and up to 50 crore ".
We are unable to understand as to how gross advances can be reduced, even though there was no such write off appearing in the balance sheet or other statements at the branch level which we have audited and signed.
1. What are technical write off?
2. How should technical write off be treated in branch balance sheet?
3. Why are technical write off not brought to the notice of branch auditor at the time of audit?
4. Whether any certification is required for such write off?
5. Whether the audit fee payable to branch auditor will be based on gross advances or net advances (after technical write off)?
Ravi Kiran M Jain
Oct 13 2018 12:00AM