What is LFAR in banking?

• Long form Audit Report (LFAR) is a questionnaire prepared by RBI which an auditor has to answer. • It was devised by RBI in 1985 and has been revised in 1992-93 and 2003. • LFAR includes questionnaires for specialized branches –

Does LFAR substitute the main audit report?

The LFAR report is neither a substitute or nor a part of statutory audit report. The Central statutory auditor should carefully read the LFAR report issued by various branches of Bank before issuing the LFAR report for Head office of a bank.

What is MOC bank audit?

Memorandum of Changes (MOC) Memorandum of Changes more often referred to as MOC is an important document enclosed with the Bank Audit Report whenever the Auditor observes significant issues effecting the Financial Statements of the Bank. Because Financial Statements of the Bank are prepared on Real Time Basis.

What is long form report?

A long-form report is an expanded form of audit report that is issued by an external auditor. The content of this report includes the following: The audit scope. The auditors’ opinion regarding the financial statements of the client. The key risks identified and how the auditors responded to those risks.

Who prepares LFAR?

Long Form Audit Report (LFAR) is a report issued by the statutory bank auditor of the bank in addition to the statutory audit report as the statutory audit report doesn’t depict all the functioning of the bank. LFAR is not required in Concurrent audit or RBI inspection.

Which risk is one of the three components of audit risk?

detection risk
There are three components of an audit risk from the viewpoint of the auditor — inherent risk, control risk and detection risk. Inherent risk lies inherent in the audit.

Who is eligible for bank audit?

the firm should have minimum statutory central audit experience of 15 years of a public sector bank (before or after nationalization) and/or by way of statutory branch audit thereof or that of statutory audit experience of a private sector bank with deposits resources of not less than Rs. 500 crore.

What is a report form?

Definition: A report form balance sheet is a balance sheet that presents asset, liability, and equity accounts in a vertical format. In financial reporting, there are two general formats for balance sheets: the account format and the report format.

What is 3rd party audit?

A third-party audit is performed by an audit organization independent of the customer-supplier relationship and is free of any conflict of interest. Independence of the audit organization is a key component of a third-party audit.

What does LfaR stand for?

Meaning of Long Form Audit Report (LFAR) This report is issued by Bank auditor in addition to statutory audit report.

What is LfaR report in banking sector?

The statutory audit report issued by the bank auditor doesn’t represent all the functioning of a bank that’s why RBI has issued a notification by which bank auditor has to issue an additional report known as LFAR report in addition to statutory audit report. RBI, the apex body governing the banks has issued a format of LFAR.

What is the procedure for long form audit report (LFAR)?

(i) Timely receipt of Long Form Audit Reports (LFARs) from the auditors should be ensured; (ii) The LFAR on the bank, after due examination, should be placed before the ACB / Local Advisory Board of the bank indicating the action taken/proposed to be taken for rectification of the irregularities, if any, mentioned therein; and

What are the points to be kept in mind while drafting LfaR?

Points to be kept in mind while drafting Long Form Audit Report (LFAR) The format of LFAR report is questionnaire format but the auditor is not necessarily Require to limit their answers to YES or NO, he/she can express their opinion as well. The LFAR report is neither a substitute or nor a part of statutory audit report.