1. As you are aware that ICAI has issued Standard on Auditing (SA) 299(Revised), “Joint Audit of Financial Statements”. Regarding allocation of work among the joint auditors, SA 299(Revised) provides as follows:

• “12. After identification and allocation of work among the joint auditors, the work allocation document shall be signed by all the joint auditors and the same shall be communicated to those charged with governance of the entity. (Ref: Para. A2)
  
  
• A1. Where joint auditors are appointed, they should, by mutual discussion, divide the audit work among themselves. The division of work would usually be in terms of audit of identifiable units or specified areas. In some cases, due to the nature of the business of the entity under audit, such a division of work may not be possible. In such situations, the division of work may be with reference to items of assets or liabilities or income or expenditure. Certain areas of work, owing to their importance or owing to the nature of the work involved, would often not be divided and would be covered by all the joint auditors. (Ref: Para. 8(a))
  
  
• A2. The documentation of allocation of work helps in avoiding any dispute or confusion which may arise among the joint auditors regarding the scope of work to be carried out by them. Further, the communication of allocation of work to the entity helps in avoiding any dispute or confusion which may arise between the entity and the joint auditors. (Ref: Para. 12)”

2. ICAI has received information from RBI that there have been certain issues between the banks’ joint auditors and the banks’ management regarding the allocation of work among the joint auditors.

3. In this matter, ICAI hereby advises its members that while allocating work amongst themselves, all efforts should be made that the allocation of work amongst them should be in agreement with the management of the bank. When so required, the said allocation may be carried out in consultation with those charged with governance of the bank.