KNC Bank Ltd. was having 20 branches all over India by the year ending 31st March, 2024. At the Mumbai branch of the bank there were high value cash…

CA Final · Advanced Auditing, Assurance and Professional Ethics · MTP · May 2025
KNC Bank Ltd. was having 20 branches all over India by the year ending 31st March, 2024. At the Mumbai branch of the bank there were high value cash deposits in one of the current accounts during June 2023. Your firm has been appointed as the concurrent auditors for the Mumbai branch for the year 2023-24. The cash collected by the branch was remitted to the currency chest on the very same day but, during the concurrent audit for the month of April 2023 itself the auditor noticed that the branch was unable to show intimations sent via e-mail to the currency chest for the cash remittance. How the discrepancy of not preserving the intimations of cash remittances to currency chest by Mumbai branch of the bank should be dealt by the concurrent auditor in his audit report? Select the correct option from the following:
(A) The auditor should report the matter as a major irregularity in his audit report to the management.
(B) The auditor should discuss the importance of preserving the hard / soft copy of e-mail sent for cash remittance with the Branch Manager and check for its compliance in the next audit period.
(C) The auditor should verify the details from e-mail sent to currency chest and close the matter.
(D) As it is a minor irregularity the auditor can ignore the same.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

The auditor should discuss the importance of preserving the hard / soft copy of e-mail sent for cash remittance with the Branch Manager and check for its compliance in the next audit period.

Topics: Standard on Auditing (SA), Reporting

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic