law: Banking Regulation Act, 1949
  30. Audit
  [(1 ) The balance-sheet and profit and loss
  
  account prepared in accordance with section 29 shall be audited by a person
  
  duly qualified under any law for the time being in force to be an Auditor of
  
  companies.]
  (1A) Notwithstanding anything contained in any
  
  law for the time being in force or in any contract to the contrary, every
  
  banking company shall, before appointing, re-appointing or removing any Auditor
  
  or Auditors, obtain the previous approval of the Reserve Bank.
  (1B) Without prejudice to anything contained
  
  in the Companies Act, 1956 (1 of 1956), or any other law for the time being in
  
  force, where the Reserve Bank is of opinion that it is necessary in the public
  
  interest or in the interests of the banking company or its depositors so to do,
  
  128[it may at any time by order direct that the special audit of the banking
  
  company's accounts, for any such transaction or class of transactions or for
  
  such period or periods as may be specified in the order, shall be conducted and
  
  may by the same or a different order either appoint a person duly qualified
  
  under any law for the time being in force to be an Auditor of companies or
  
  direct the Auditor of the banking company himself to conduct such special
  
  audit] and the Auditor shall comply with such directions and make a report of
  
  such audit to the Reserve Bank and forward a copy thereof to the company.
  (1C) The expenses of, or incidental to,
  
  129[the special audit] specified in the order made by the Reserve Bank shall be
  
  borne by the banking company.]
  (2) The Auditor shall have the powers of,
  
  exercise the functions vested in, and discharge the duties and be subject to
  
  the liabilities and penalties imposed of Auditors of companies by 130[section
  
  227 of the Companies Act, 1956 (1 of 1956)] 131[and Auditors, if any, appointed
  
  by the law establishing, constituting or forming the banking company
  
  concerned].
  (3) In addition to the matters which under the
  
  aforesaid Act the Auditor is required to state in his report, he shall, in the
  
  case of a banking company incorporated 102[in India], state in his report:-
  (a) whether or not the
  
  information and explanations required by him have been found to be
  
  satisfactory;
  (b) whether or not the
  
  transactions of the company which have come to his notice have been within the
  
  powers of the company;
  (c) whether or not the
  
  returns received from branch officers of the company have been found adequate
  
  for the purposes of his audit;
  (d) whether the profit
  
  and loss account shows a true balance 132[of profit or loss] for the period
  
  covered by such account;
  (e) any other matter,
  
  which he considers should be brought to the notice of the shareholders of the
  
  company.