Fair Bank has appointed CA Riya as statutory auditor for the financial year 2024-25. During the audit, she observed the following:Pending cases with…

Audit procedures to be performed by CA Riya for verifying claims against the bank not acknowledged as debts are: Examine the relevant evidence, e.g., correspondence with lawyers/ others, claimants, workers/officers, and workmens' unions/officers' unions.Review the minutes of meetings of board of directors/committees of board of directors, contracts, agreements and arrangements, list of pending legal cases, and correspondence relating to taxes, and duties, etc. to identify claims against the bank.Ascertain from the management the status of claims outstanding as at the end of the year.A review of subsequent events would also provide evidence about completeness and valuation of claims.