Forums
Back
Audit of Banks
Auditing
What do they mean by "declaration of indebtedness" to be obtained by the bank? Is it still applicable?
Answers (3)
A declaration of indebtedness is a document that confirms the amount of money a borrower owes to a lender. Banks may still require borrowers to provide this document as part of their loan approval process or ongoing monitoring of the borrower's financial situation.
Thread Starter
Sarthak AggarwalI am asking in relation to the initial considerations by the statutory auditor. It is written that banks should obtain "declaration of indebtedness" before appointing their statutory central/ branch auditors.
I see. In the context of auditing, it is common for banks to obtain a declaration of indebtedness from their borrowers before appointing a statutory central/branch auditor. The reason for this is to assess the potential risk associated with the borrower's indebtedness and to ensure that the auditor appointed has the necessary expertise to provide an informed opinion on the borrower's financial statements.
Your Reply