Kathmandu: Nepal Rastra Bank has revised the format of audit reports prepared by banks.
The central bank, through a circular issued on Monday, announced an amendment to the Integrated Directive and introduced a new format for long-form audit reports.
The revised audit report format will be implemented starting with the preparation of reports for the last fiscal year. In other words, audit reports for fiscal year 2024/25 must now be prepared in the new format.
The central bank has added provisions requiring auditors to provide opinions on risk management, including credit risk, non-banking assets, ESRM (Environmental and Social Risk Management), and the Risk Management Committee. Similarly, auditors must also provide opinions on operational risks, particularly IT and cybersecurity risks.
On internal control systems, auditors are now required to give opinions on compliance functions, NRB’s supervision reports, and digital banking.
The new format also mandates the inclusion of matters related to the payment system, capital adequacy, and compliance with capital requirements. In addition, NRB has designed the format to include issues not covered in the previous report structure.
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