ICICI Bank 2016 Annual Report Download - page 122

120 Annual Report 2015-2016
Annexure A
to the Independent Auditor’s Report of even date on the Standalone Financial Statements of ICICI Bank Limited
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION
143 OF THE COMPANIES ACT, 2013
1. We have audited the internal nancial controls over nancial reporting of ICICI Bank Limited (‘the Bank’) as at 31
March 2016 in conjunction with our audit of the standalone nancial statements of the Bank for the year ended on
that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
2. The Bank’s Board of Directors is responsible for establishing and maintaining internal nancial controls based on
the internal control over nancial reporting criteria established by the Bank considering the essential components
of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(‘the Guidance Note’) issued by the Institute of Chartered Accountants of India (‘the ICAI’). These responsibilities
include the design, implementation and maintenance of adequate internal nancial controls that were operating
effectively for ensuring the orderly and efcient conduct of its business, including adherence to Bank’s policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable nancial information, as required under the Companies
Act, 2013 (‘the Act’).
AUDITOR’S RESPONSIBILITY
3. Our responsibility is to express an opinion on the Bank’s internal nancial controls over nancial reporting based
on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing (‘the
Standards’), issued by the ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable
to an audit of internal nancial controls, both issued by the ICAI. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal nancial controls over nancial reporting was established and maintained and if such controls
operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal nancial
controls system over nancial reporting and their operating effectiveness. Our audit of internal nancial controls
over nancial reporting included obtaining an understanding of internal nancial controls over nancial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of the nancial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms
of their reports referred to in the Other Matters paragraph below, is sufcient and appropriate to provide a basis for
our audit opinion on the Bank’s internal nancial controls system over nancial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
6. A bank’s internal nancial control over nancial reporting is a process designed to provide reasonable assurance
regarding the reliability of nancial reporting and the preparation of nancial statements for external purposes in
accordance with generally accepted accounting principles. A bank’s internal nancial control over nancial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reect the transactions and dispositions of the assets of the bank; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of nancial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the bank are being made only
in accordance with authorizations of management and directors of the bank; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the bank’s assets that
could have a material effect on the nancial statements.