ALLAHABAD BANK

(A GOVERNMENT OF INDIA UNDERTAKING)

HEAD OFFICE: 2, NETAJI SUBHAS ROAD, KOLKATA-700 001

CONCURRENT AUDIT CELL, PHONE – 033-2242 – 0919 /033-22627044 FAX -2231-2422, E-MAIL- ho.ins@allahabadbank.in

Application For Concurrent / Revenue Audit ( Year 2015-16 )

1. Allahabad Bank invites applications in the under noted prescribed format from practicing firms of Chartered Accountants of India who are willing to have their firm empanelled as Concurrent / Revenue Auditor in the Bank.

2. The panel of auditors maintained last year (including existing concurrent auditors) since expired and will not be further used. Hence, all the concurrent auditors selected earlier (except those who completed more than two years) have to apply afresh for the empanelment process.

3. The Bio-data should be submitted in the under-noted format to the Dy.General Manager, I nspection Deptt, Concurrent Audit Cell, Head office, Fourth Floor, 14, I ndia Exchange Place, Kolkata –700001 only by postal service / courier.

4. “Application for empanelment for Concurrent & Revenue Audit-2015” should be mentioned on the envelope carrying Bio-data

5. Mere submission of application does not, in any way, constitute guarantee for allotment of any audit job from the bank. After empanelment, the work will be allotted as & when need arises at the sole discretion of the Bank.

6. The following type of audit firms are not required to submit their Bio-data:

a ) if Firm / it’s proprietor / any partner has been disqualified / depanelled or whose appointment has been terminated by RBI/ ICAI/ Bank / any other Bank on an earlier occasion.

b ) Audit firms who have conducted statutory audit of Allahabad bank branches for the year 2014-15.

c) Associate concerns of Audit firms who have conducted statutory audit of Allahabad bank branches for the year 2014-15, defined as under by RBI:

“Associate concerns means any corporate body or partnership firm wherein the proprietor and/or partner(s) of the statutory audit firm and/or their relative(s) is/are Directors or partners and/or jointly or severally hold 20% or more of the interest in the corporate body or partnership. “Relative” for this purpose will mean the spouse or any lineal ascendant or descendant of the proprietor or partner of the statutory audit firm.”

7. If the space provided for against any item in the Bio-data format is not sufficient, details may be furnished in a separate sheet.

8. All enclosures must be attested as true copy under seal by the proprietor / at least one partner ( in case of partnership firm)

9. Any change in the Bio-data format will result in rejection of the same.

10. The last date for receipt of Bio-data is 18th August, 2015. Please dispatch Bio – Data in such way that it must reach to above address (mentioned at point no. 3), latest by 18thAugust 2015 positively. Please note that application received thereafter will not be entertained.

The selection and eligibility criteria of Concurrent Auditors will be as under:

a. The firm should be selected from the RBI panel of CA Firms as per the gradation suggested for Statutory Branch Auditor appointment

b. The firm should preferably be a partnership firm of Chartered Accountants and should preferably be in existence for more than 5 years.

c. One of the Auditors (any of the partner or employed CA) should be qualified as Information System Auditors (CISA / DISA) with necessary exposure to the Systems Audit.

d. Weight age to be given to the firms, where the partners themselves are ex-bankers or the firm has got tie-up with ex-bankers with requisite experience and exposure.

e. It is to be ensured that the audit firm or any sister / associate concern / network firm is not conducting the Statutory Audit of the Bank or any of its Branches.

f. Weight age to be given to a firm having exposure in conducting Concurrent Audit of the Bank Branches of a few public sector / major private sector Banks.

g. The firm should have necessary office set up and adequate personnel to ensure proper deployment and timely completion of the assignments.

11. Concurrent Audit Fee Structure :

Branches with total Business as on 31st March 2015 Audit Fee (in Rupees, Per Month)
Service Branches /CPH/HUB/Back Office/HO Dept 7,500
Up to Rs.50 Cr with Credit outstanding of Rs.15 Cr & above 12,000
Above Rs.50.00 to Rs.100 Cr. 13,000
Above 100 Cr to 150 Cr 14,000
Above 150 Cr to 200 Cr 16,000
Above 200 Cr to 500 Cr 18,000
Above 500 Cr to 1000 Cr 20,000
Above 1000 Cr & FCTM 25,000

12. Zonal Manager / I nspection Department may not pay the bill if any report is not submitted as per the time schedule / not submitted within the time schedule / or if the same has not been compiled as per the instructions / guidelines or not submitted in the prescribed format or is otherwise found unsatisfactory or monthly Report ( e-Report) is not received as per guidelines. However, if the delay in submission of the report has been caused due to genuine difficulty / exigencies, payment to the CA firm can be approved by DGM / GM, Inspection Deptt, HO on the recommendations of Zonal Manager.

13. Bank reserves right to initiate stringent disciplinary action against the Concurrent Auditor in case Frauds / sizeable income leakage are reported at later date in Concurrent Audit Branches & fact may be reported to RBI & ICAI.

14. Empanelled Chartered Accountants are allotted the Concurrent Audit work initially for a period of one year. On completion of the year, if the performance is found satisfactory, the assignment may be renewed for subsequent years on yearly basis, subject to maximum of three years. Then one year cooling period is given compulsorily to the Auditors, during which no Concurrent Audit work of any Branch is allotted. On completion of cooling period, the Auditor may be given Concurrent Audit work of other Branch if found suitable.

15. The Bank reserves its right to review the appointment at any point of time and if necessary, can cancel the appointment by giving one month’s notice. In case the firm fails to report serious irregularities / high value income leakage, Bank reserves right to report the matter to RBI / ICAI / IBA & initiate disciplinary action. Such firms will be black listed and they will not be eligible for assignment of audit work with Bank for next five years.

16. Concurrent Audit has very important role in identifying System lapses, irregularities of every type, income leakage, ensuring compliance of terms of sanction for advances, detecting frauds, pointing out symptoms of sickness in time, etc.

17. Quality of Concurrent Audit is reflected in reducing number of irregularities, absence of persisting irregularities as RBI envisages that Auditor should also educate staff about hazards of deviation from Systems and Procedures. If Concurrent Audit is effective, it should also result in up gradation of the Branch in annual inspection and / or maintaining higher-level ratings obtained ( Low – medium risk under RBIA)

18. If the RBIA rating of the Branch is downgraded, the performance of the Concurrent Auditor shall be critically examined and reviewed for deciding continuance of service or otherwise.

19. If the Concurrent Auditor fails to detect and report irregularities/deviations from laid down policies/norms, his services are liable to be terminated without any notice.

20. If the Concurrent Auditor fails to attend the Branch on day-to-day basis or the attendance of the Partner / Proprietor of the firm is found to be poor, his services are liable to be terminated without any notice.

Click here to Download Full Details alongwith Format of Application

CA AMRESH VASHISHT, Meerut

(About the Author- Author was Member of ICAI- Regional Research Committee 2013-14 and ICAI- Committee For Direct Taxes 2011-12 and can be reached at email amresh_vashisht@yahoo.com or on phone Phone: 0 1 2 1-2 6 6 1 9 4 6. Cell: 9 8 3 7 5 1 5 4 3 2 having office at 1 1 5, Chappel Street, Meerut Cantt, UP, INDIA)

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0 responses to “Allahabad Bank – Empanelment for Concurrent & Revenue Audit”

  1. CA Narender Kumar says:

    Demanding the copies of certificates etc is irrelevant secondly with responsibilities cast upon the remuneration is negligible.

  2. VINOD MITTAL says:

    Given the amount of responsibilities,reports available for discharging the responsibilities, time taken the remuneration is wholly unreasonable and in fact.by offering such a fees the bank is trying to equate a Chartered accountants with the office assistant of a bank. we all should not apply. it is time icai should intervene in the matter and a fee schedule is finalised with all the banks for the concurrent audit assignments and maintain the dignity of the profession. We are not going to apply

  3. CA Sandeep Haritwal says:

    Looking to fees structure of a bank offer to auditor is not upto standard level.
    then how a ca can provide quality assurance to bank

  4. NILESH says:

    Very lower fees structure …..!

    If Bank requires good quality work from the auditors, Bank should pay good remuneration to auditors……!

  5. vswami says:

    OFFHAND (to share personal thoughts, for the common good)
    Even as a member of the fraternity, but no longer in active practice, for that matter as one who never have had a hand-on accounting /audit experience in the whole of long career, but nonetheless driven by wholly common sense approach, more so having special and anxious regard to the obtaining field realities, as aired frankly in one of the comments,the utility value or otherwise of so called “revenue audits” of banks, deserves to be given the utmost due consideration both by banks and CAs accepting audit responsibilities, inherently of an onerous nature.

    The valuable advice/suggestions of the ICAI, as the self-regulatory authority, so also the RBI, in control and vested with overall powers / duties to oversee their respective members’ related functions, if invited and solicited, should be of substantial guidance both for CAs appointed in pursuance of the subject invitation; also in respect of like invitations from other banks as well.

    Open /subject to viewpoints from banking and accounting experts, if were to be better reasoned, and materially at variance.

  6. CA MBG Tilak says:

    One has to rethink after looking at this advertisement ,as to whether CAs self-respect & esteem is compromised in the matter of remuneration/compensation offered Vis-a -Vis the professional responsibilities expected from CAs by the Bank.CAs have to cautiously examine whether to respond to this ad or not. In my case, I am not going to respond/ignore to this ad since I think that even a mason gets gets fair amount of remuneration vis-a-vis the concurrent auditor looking at the later”s responsibilities,attempts to blacklist the firm even a small mistake occurs, foregoing all bright chances elsewhere., deprieving career prospects of CA .It is hightime that ICAI ought to interevene in this kind of matters suitably in the interests of its members.

  7. Harshit Agarwal says:

    It seems that the bank is making strongly liable the concurrent auditor for every misdoings or deviations of the branch. The conditions and points specifies as terms are too stringent and this much of work cannot be done at such a lower fees.

  8. CA Umed V. Patel says:

    Compared to fees payable by the bank and responsibility cast upon the concurrent auditors are more. Expectation of the bank from the autitors are very high e.g. one full time assistants and a chartere accountant shuld visit atleast two to three days in a week. The fees scale is very low even lower than the pay scale of award staff.

  9. CA sriram Polamraju says:

    I think the fees structure is not realistic.for 50 cr fees is 12000 where as for 1000 cr it is just 6000 more.I think it is our CA community to escalate the problems in concurrent audit w.r.t . hardness and responsibility of concurrent audit.The full check concept need to be rethink.

  10. m natarajan says:

    Given the amount of responsbilities,reports available for discharging the responsiblities, time taken the remuneration is wholly unreasonable and in fact.by offering such a fees the bank is trying to equate a Chartered accountants with the office assistant of a bank.

  11. CA Vyankatesh Somalwar says:

    On reading the terms & conditions of appointment of Concurrent Auditors i got the feeling that in monthly fees of 12000-15000 the banks wish to make CA firms accountable for all the wrongdoings that may happen in the bank.

  12. CA.R.ROY says:

    Banks are struggling for their huge NPA.Nothing tangible results are achieved through these Revenue Audits.It is waste of money and time both for banks and auditors.

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