Executive Summary

The Auditing and Assurance Standards Board (AASB) of the Institute of Chartered Accountants of India (ICAI) released the Guidance Note on Audit of Banks (2026 Edition) on 16 March 2026. The Guidance Note is issued annually to assist auditors undertaking statutory audits of banks and bank branches, and the 2026 Edition consolidates the main Guidance Note, appendices for statutory central audit and bank branch audit, and relevant RBI regulatory material.

Background

Banking audits involve a specialised regulatory and accounting environment requiring auditors to consider RBI directions, prudential norms, asset classification, provisioning, income recognition and capital adequacy. ICAI's AASB revises the Guidance Note annually to keep pace with the applicable framework.

What Has Changed?

ICAI has released the 2026 Edition, comprising:

• Guidance for statutory central audit of banks;
• Guidance for bank branch audits;
• Relevant RBI Master Circulars and Master Directions; and
• Relevant notifications, FAQs and general circulars.

Key Provisions

The Guidance Note provides a consolidated audit reference, supported by separate appendices for Statutory Central Audit and Bank Branch Audit, along with the relevant RBI regulatory material needed to apply the current banking framework.

Applicability 

• Statutory auditors and branch auditors of banks;
• Audit teams and audit firms undertaking banking assignments; and
• Banking entities and their finance functions.

Practical Implication

Audit teams should use the 2026 Edition while planning and executing bank audits, incorporating the latest applicable RBI requirements into risk assessment and audit procedures.

 What Businesses Should Do

1. Obtain and review the 2026 Edition.
2. Update audit programmes and checklists.
3. Identify changes in applicable RBI requirements.
4. Ensure audit documentation reflects current regulatory considerations.

Our Perspective

The Guidance Note should be treated as a live reference for banking assignments; audit teams should verify that the latest RBI requirements — not prior-year programmes — are built into current-year audit procedures.

Conclusion

The 2026 Edition gives auditors an updated, consolidated reference for statutory bank and bank-branch audits and should be incorporated into audit planning for the current cycle.

Source / Regulatory Reference

• ICAI – Guidance Note on Audit of Banks (2026 Edition): https://www.icai.org/post/guidance-note-on-audit-of-banks-2026-edition-details
• ICAI – AASB Publications: https://www.icai.org/post/icai-publications-auditing-assurance-standards-board