law: The Regional Rural Banks Act, 1976
  19. Closure of accounts
  1.  Every
  
  Regional Rural Bank shall cause it books to be closed and balanced as on the
  
  31st day of December of each year and shall appoint with the approval of the
  
  Central Government auditors for the audit of its accounts.
  2.  Every
  
  auditor of a Regional Rural Bank shall be a person who is qualified to act as
  
  an auditor of a company under section 226 of the Companies Act, 1956 (1 of
  
  1956), and shall receive such remuneration as the Regional Rural Bank may fix
  
  with the approval of the Central Government.
  3.  Every
  
  auditor shall be supplied with a copy of the annual balance-sheet and profit
  
  and loss account of the Regional Rural Bank, and a list of all books kept by
  
  the Regional Rural Bank, and it shall be the duty of the auditor to examine the
  
  balance-sheet and vouchers relating thereto, and, in the performance of his
  
  duties, the auditor-
  a.  
  
    Shall
  
  have, at all reasonable times, access to the books, accounts and other
  
  documents of the Regional Rural Bank;
  b.  
  
    May,
  
  at the expense of the Regional Rural Bank, employ accountants or other persons
  
  to assist him in investigating such accounts; and
  c.  
  
    May,
  
  in relation to such accounts, examine the Chairman or any officer or employee
  
  of the Regional Rural Bank.
  1.  
  2.  
  3.  
  4.    Every
  
  auditor of a Regional Rural Bank shall make a report to that bank upon the
  
  annual balance-sheet and accounts and in every such report shall state,--
  a.  
  
    Whether,
  
  in his opinion, the balance-sheet is a full and fair balance-sheet containing
  
  all necessary particulars and is properly drawn up so as to exhibit a true and
  
  fair view of the affairs of the Regional Rural Bank, and, in case he had called
  
  for any explanation or information, whether it has been given and whether it is
  
  satisfactory;
  b.  
  
    Whether
  
  or not, the transactions of the Regional Rural Bank, which have come to his
  
  notice, have been within the powers of that bank;
  c.  
  
    Whether
  
  or not, the returns received from the offices and branches of the Regional
  
  Rural Bank have been found adequate for the purpose of his audit;
  d.  
  
    Whether
  
  the profit and loss account shows a true balance of profit or loss for the
  
  period covered by such accounts; and
  e.  
  
    Any
  
  other matter which he considers should be brought to the notice of the Regional
  
  Rural Bank.