Accountants are often faced with the difficulties and risks associated with obtaining balance confirmations from various entities, particularly banks. In the past, the absence of a standardised system has frequently exposed auditors to risks and led to auditing errors. However, a significant change is on the horizon!
The Institute of Chartered Accountants of India (ICAI), in cooperation with the Indian Banks’ Association (IBA), is introducing a shared platform for balance confirmation. Initially, it will apply only to public sector banks. However, it will later extend to include private banks and other financial institutions.
This new platform, built and managed by PSB Alliance Pvt. Ltd. (PSB Alliance) in collaboration with the Institute for Development and Research in Banking Technology (IDRBT), is expected to radically change how audits are performed, simplifying the entire process.
Uniformity: The platform promises to eliminate the inconsistencies and risks of non-standard procedures, offering a consistent and legally recognized process for balance confirmations.
Efficiency and Reliability: With this platform, auditors will no longer have to physically visit each bank branch, saving time and reducing costs. Obtaining balance confirmations will become a smooth, reliable, and efficient process.
Cost Savings: The platform removes the fees associated with obtaining balance confirmations, making auditing more economical.
Enhanced Authentication: The system will ensure proper verification, providing auditors with reliable and trustworthy audit evidence. The Common Balance Confirmation Platform is expected to transform the auditing industry by enhancing transparency, efficiency, and reliability. This marks a significant step towards digitalization and standardization in the field. ‘Talk to CA’, to know more about this update!
Why Choose Us?
Vakilsearch, as a leading legal, tax, and compliance company in India, can be instrumental in this transition in several ways:
- Educational Resources: Vakilsearch can provide educational resources and webinars explaining the use and benefits of the Common Balance Confirmation Platform. This can significantly help auditors, online CA, to understand and adopt this new tool effectively.
- Legal Advice and Compliance: Vakilsearch, with its team of legal experts, can offer advice on legal and compliance aspects related to using the platform. This would ensure that all transactions and activities comply with the relevant regulations and laws.
- Partnerships and Collaborations: Vakilsearch can form strategic partnerships with entities. These collaborations can help improve the platform’s functionality and reach.
- Integration and Support: Vakilsearch could integrate this platform into its own services, providing a seamless experience for its clients. It can also provide technical support to users, helping to resolve any issues and improving user experience.
- Promotion and Advocacy: Vakilsearch can use its wide reach and influence to promote the platform, encouraging more organisations and auditors to adopt it. The company’s endorsement could significantly enhance the platform’s credibility and acceptance.
