CA Gopal Rathi
Dear CA friends,
Arbitrary criteria exist for the allotment of audit of public sector units. Every department made their own different rules and conditions for appointment though there is existence of ICAI Multipurpose empanelment form (MEF).
There is something which is hidden and not transparent.
Individual or Proprietor ship concerns are not eligible for PSU Audit only because of non-fulfilment of experience condition.
A proprietor ship concern never get experience until and unless allotment of audit to them.
There should be a compulsory training for new members to get experience of PSU audit and every firm must have compulsion to train a fix no. of new chartered accountants.
Bank Audit and PSU Audit both should be combined for the purpose of allotment therefore those firms appointed for PSU will barred from Bank Audit and vice versa.
It will not only make system transparent as well as end of rest period or cooling system terminology.
Another one step also should be taken for large betterment of Audit firms.
At present a single chartered accountant firms are allotted 2 or 3 branches that is a cause of limited firms are in the umbrella of allotment therefore allotment should be restricted to 1 or 2 branches.
That will bring more members to the allotment and even members will keep themselves up to date with the amendments regarding banking sectors. every department made is why different rules and conditions
I wrote to RBI regarding autonomy but unfortunately their reply was so irresponsible “Autonomy has been given to the banks and their shareholders will decide on the appointment of auditors”
It’s really not an abuse of rights in the context of public funds also equivalent an economic crime.
Whenever the public funds are concern not only transparencies are required also it has to be shown.
Similarly, the private bank is also dealing with public funds then why these banks enjoying privileges regarding Statutory Branch Audit. These banks must be brought in the same bracket as public sector banks.
New tender policy adopted by Bank of Baroda is now has become a burning issue, only because of the work is slipping from the hands of large firms. There is no voice till now when all the unfair conditions for the proprietor ship firms regarding Bank Audit and PSU Audit.
Transparency is going emaciated every moment
(Author can be reached at gbnrathi@gmail.com)
Thanks to CA Gopal Rathi for raising this point.
It needs immediate attention from ICAI to streamline bank audits to new firms of CA’s who start their practice after retirement to fulfill their dreams. Senior citizens valuable experience to be counted while allotments to get reports with value addition.
CA B Ramachandran
I request to President Sir
to initiate something fruit full for proprietors and small firms
thanks a lot Rathiji
Even highly experienced managers(CAs) of the cadre “General Manager” in PSU or Bank with 35 years of post professional experience (after retirement) , form proprietary concerns & apply in some cases for Bank Branch Audit empanelment ,their experiences are ignored & not considered in many cases.This is nothing but arbitrary practice.
There we request the Institute to represent effectively to RBI as well as Finance Ministry on the lines presented my esteemed colleague CA Gopal Rathi & also give categorization of Firms into Category I,II,III &IV purely based on the standing of the firm & other factors excepting “Bank Audit Experience” criteria since that factor(provision of Bank audit experience) is neither within the purview of either ICAI or Individual CA Member, but purely at the discretion of Individual Banker, the denial of which by the Banker, individual CA should not suffer, for no fault of his/theirs..
Thanks to raise voice for us sir …
ICAI Will take care suitably. …..
Its time to unity …..for proprietorship firms I think we should create a platform !!!
Thanks Sir
its very serious issue …