India needs robust audit system for dynamic, resilient economy: RBI Guv Das

Reserve Bank Governor Shaktikanta Das said on Monday that fair and impartial auditing is essential for a resilient economy as it instils confidence among citizens. Addressing officers at the National Academy of Audit and Accounts, Das said that audit is important for the country as public expenditure decisions are based on these reports.

Observing that there is a need to improve the quality and depth of audit, he said the Reserve Bank has taken a host of steps in consultation with the Institute of Chartered Accountants of India (ICAI) for improving the audit of banks and financial institutions. Listing out some of the recent measures, he said, risk-based internal audit system for commercial banks was strengthened in January this year.

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Das said RBI has been stressing on a strong governance framework in banks, NBFCs for building a resilient financial sector. “With globalisation and increasing complexities of the financial system, audit as a public good has become vital for a sound, stable and vibrant financial system,” he said. He urged the auditor community to update and upgrade skills on a constant basis, and perform their task in the most effective manner.