(A Govt of India Undertaking)
Inspection & Audit Department
Head Office, Koti, Sultanbazar
4th Floor, Hyderabad – 500 095
Phone:040-24683402/404/422 Fax: 24758526
e-mail: [email protected]
Empanelment of Chartered Accountant firm for concurrent audit assignment of Andhra Bank – Terms and conditions
1 Andhra bank invites applications from practicing Firms of Chartered Accountants, who are willing to have their Firm empanelled as Concurrent auditor of the bank. Those Firms, who have already sent their profiles / bio data need not apply again.
2. Applicant should be a partnership firm with minimum two partners as FCAs / Proprietory concerns ( Proprietor should be an FCA) with minimum standing of 5 years. Preference shall be given to partnership firm.
3. The audit Firm having CISA/ DISA qualified partners/ Proprietors would have preference.
4. The Firms will be selected from the RBI panel as per gradation suggested for branch Statutory Auditor appointment.
5. Firm should mention RBI registration number, ME No, Service tax registration no.
6. Particulars of full time partners/proprietor like qualification, ICAI membership no, qualification and experience should be furnished.
7. Period of the assignment is from April 2013 to March 2014 and the last date for submission of application is 15.03.2013.
8. The concurrent audit is to be carried out as per the guidelines issued by ICAI, RBI, Govt Of India and our bank from time to time
9. The concurrent audit Firm should furnish the name and qualification of the person , who shall be conducting audit in the branch , to the Bank before commencing the audit assignment.
10. The Audit Firm should undertake that they will not subcontract the audit assignment.
11. The firm should have necessary office set up and adequate personnel to ensure proper deployment and timely completion of the assignments.
12. While accepting the assignment, the firm should execute undertaking of fidelity and secrecy on its letterhead in the format prescribed by the Bank.
13. A declaration to be furnished by the firm that credit facilities availed by the firm or the partners or firms in which they are partners or directors including any facility availed by a third party for which the firm or its partners are guarantors have not turned or are existing as nonperforming assets as per the prudential norms of RBI. In case the declaration is found in correct , the assignment would get terminated besides the firm being liable for any action ICAI/ RBI guidelines.
14. The Firm/ any partner of the Firm should not be Statutory audit of our bank for the year 2012-13.
15. The Firm/any partners should not have any disciplinary matters pending with ICAI/ RBI and they should not have suffered any disqualification.
16. The audit Firm provisionally selected only, will be intimated. No individual intimation will be sent to others.
17. A qualified chartered accountant has to visit the Branch at least twice a week to supervise the audit work. The Audit Firm is required to conduct the audit work for a minimum of 21 working days in a month
18. Bank reserves the right to terminate the assignment by giving one month’s notice in writing if it is found that the quality of the audit is not satisfactory. In case the auditors choose to resign, one-month prior notice should be given to the Branch/Zonal Office/ Head Office and in such a case the assignment will get terminated only after the Head Office issues communication accepting the resignation.
19. Short Inspection of large borrowal accounts: Concurrent Audit also includes short inspection as per the directions of controlling office (Zonal Office) , short inspection to be conducted and the report should be submitted to the concerned Zonal Office.
20. Limited Review of Accounts: Concurrent auditors are required to carry out Limited review of accounts for all specified quarters.
21. Verification of Forex Transactions:
a. Concurrent auditors will have to carry out 100% verification of bills of entry in respect of import transactions and submit a separate certificate on quarterly basis.
b. EDI copy of shipping form along with SDF have to be verified for ensuring that Short realization or Non Realizations allowed if any are within the powers
delegated to them or duly approved by RBI.
c. This report is to be sent to Investment and International Banking Department, Mumbai. Copy of the covering letter to be sent to Inspection and Audit Department,
d. Concurrent auditors have to verify export bills written off during the month and certify that the branch has recovered export incentives availed by the exporter as
per RBI guidelines, while writing off the unrealized export bills.
22. Concurrent audit has to be carried out on a daily basis covering transactions of all the working days of the calendar month as per Risk Based concurrent audit. Reporting however will be on monthly basis.
23. Concurrent audit extends to Extension Counters attached to the branch and all other areas of branch operations without exception including ATMs attached to the branch / Forex business etc. You may also report on any other relevant aspects, which you may come across during the course of the Audit without restricting yourself to Structured Format of reporting.
24. The fee for concurrent Audit ranges from Rs. 10,000 to Rs. 20,000 p.m based on size of business of the branches.
In addition to the monthly fees, the following additional payments are also payable
• Rs. 500 for every Extension Counter attached to the Branch per month.
• Rs. 500 per fortnight for all Forex Category A & B Branches for issuing fortnightly certificates
• 10% of quarterly fee is given for certification of quarterly accounts
• Service Tax payable is extra and TDs will be deducted at source.
• One qualified Charted Accountant is eligible for TA & DA for conducting outstation unit inspections /stock audits/short inspections and for attending joint meetings
convened by Zonal offices as per eligibility of concerned Branch Managers.
• For conducting short inspection, a fee of Rs.1500/- per borrowal account for the number of accounts in excess of 10.
25. Penalty by way of deduction of fee by 10% would be imposed for delay in submission of audit reports by more than 10 days.
26. The Auditor/Audit firm will be responsible for not reporting serious irregularities/discrepancies/frauds/gross negligence/ malafide intention (With or without financial loss).
Further Bank reserves the right to terminate the audit assignment besides notifying such deficiencies and in competencies to the Council of ICAI / RBI/ IBA.