KNC Bank Ltd.

KNC Bank Ltd. was having 20 branches all over India by the year ending 31st March, 2024. At the
Mumbai branch of the bank there were high value cash deposits in one of the current accounts
during June 2023. Your firm has been appointed as the concurrent auditors for the Mumbai
branch for the year 2023-24. The cash collected by the branch was remitted to the currency chest
on the very same day but, during the concurrent audit for the month of April 2023 itself the
auditor noticed that the branch was unable to show intimations sent via e-mail to the currency
chest for the cash remittance.
How the discrepancy of not preserving the intimations of cash remittances to currency chest by
Mumbai branch of the bank should be dealt by the concurrent auditor in his audit report? Select
the correct option from the following:

a) The auditor should report the matter as a major irregularity in his audit report to the management.

b) The auditor should discuss the importance of preserving the hard / soft copy of e mail sent for cash remittance with the Branch Manager and check for its compliance in the next audit
period.

c) The auditor should verify the details from e-mail sent to currency chest and close the matter.

d) As it is a minor irregularity the auditor can ignore the same.