Empanelment Of Chartered Accountants / Cost Accountants For Forensic Audit

State Bank of Bikaner and Jaipur, Head Office, Jaipur invites application from eligible individuals! corporates! firms who display exceptional professional competence in forensic audit and are Members of Institute of Chartered Accountants of India (ICAI)! the Institute of Cost Accountants of India with experience of minimum 5 years. Exposure in banking sector is must.

Applications completed in all respect should reach us on or before 15.09.2015 by 3.00 P.M. at Credit Policy and Procedures Department, Head Office, Tilak Marg, C-Scheme, Jaipur. Applications received after this date will not be entertained.

For eligibility criteria, detailed terms & conditions and Application forms etc. please check the links given below :-

Application Form

Non-disclosure Agreement

Eligibility Criteria and Terms & Conditions are as follows :-

State Bank of Bikaner and Jaipur, Head Office, Jaipur invites application from eligible Individuals/ Corporates/ Firms for empanelment for assigning Forensic Audit of their borrowal units. The interested entities fulfilling the under mentioned criteria and terms and conditions may submit their application/ bio-data on the prescribed format.

Forensic Audit relates to the findings by audit of legally tenable evidence, and in the process corporate veil is being lifted (in case of corporate entities) to identify the fraud (a criminal offence) and the persons responsible for it. It also aids in tracing the money trail and recovery of the money unduly diverted out of the system

Objective of forensic audit is to find whether or not a fraud has taken place. Forensic auditor will have to examine in totality voluminous records and numerous witnesses within the ambit of law. Proper documentation is vital in substantiating the findings. The forensic audit will cover the whole gamut of Bank’s functioning including transactions in liabilities, advances and investments.

An illustrative list of scope for forensic audit is as under:

i) Ascertaining money trail and end use of funds granted by lenders.

ii) Tracing the source of contribution by promoters by analyzing of equity/ debt infused by promoters/ partners.

iii) Verifying revenue from operations including checking sale order, invoices and controls in the billing process. The focus should be on inflated turnover/ fictitious sales and/ or Sales on Return (SOR) basis where profit has been booked and sales returned in the subsequent accounting period leading to writing off of stocks/ debtors and reversal of booked profits. The sustainability of sales in future years should be co-related with Technical and Economic Viability (TEV) study.

iv) Commenting on transactions of substantial amount, which seem not to be normal trade transactions at arm’s length.

v) Commenting on adherence to Escrow/ Trust and Retention Account (TRA) arrangements made with various banks. Details of all transactions with banks outside the consortium/ other than nominated account.

vi) Concentrating transactions- sole customer, sole supplier, major transactions with related parties/ group companies, analysis of relationship in two-way deals with the same party or indirect payments made by customers of the borrower to the vendors of borrower.

vii) Movements in unsecured loans during the specified period.

viii) In-depth analysis of findings of Special Audit if any.

ix) Details of substantial debts raised in sister/ associate/ group companies either through corporate guarantee of borrower or against security of promoters or promoter’s family assets.

x) Verifying receivables thoroughly as there have been cases where the units have shown in forensic audit, reciprocal receivables against each other, especially in case of related parties.

xi) Finding details of assets of unit/ its promoter(s)/ partners to ensure recovery of loans and advances granted by banks as there would be cases where some assets are not reported in financials of the unit/ promoters / partners.

xii) Examining discreetly chain of title pertaining to unit/ promoters/ partners to ensure genuineness of the dealings as there could be cases of bogus/ family/ other settlement transactions.

xiii) Assessing the project implementation capabilities of both new customer as well as existing customer, based on past records of implementation and projects under implementation. Reasonability of cost estimates should also be examined.

Please note the above list is only indicative and not exhaustive.

Criteria And Terms & Conditions For Empanelment of Forensic Auditor

1.Eligibility Criteria:

a) Individuals/ Firms/ Corporates who display exceptional professional competence in Forensic Auditing.

b) Must be registered with Institute of Chartered Accountants of India(ICAO/ The Institute of Cost Accountants of India as Partner/ Director with an experience of minimum 5 years. Exposure in banking sector will be a must.

c) Having in depth knowledge and extensive experience in accounting and should be aware of the various practices existing in cross section of industries.

d) Having proven track record of conducting at least three Forensic and Investigative audits and exposed/ established frauds and malpractices.

e) Having integrity and character beyond reproach. Unblemished track record with no unsatisfactory conduct in the past. Should not have been blacklisted by any financial institution/ other organizations/ any Government department. The Individuals/ firm/ company should furnish a self-attested affidavit on stamp paper in this regard.

f) Should not have any association in any manner with the unit/group referred for forensic audit.

2. Other Terms & Conditions:

i) Application in the format placed below should be submitted to Chief Manager, Credit Policy & Procedures Department, State Bank of Bikaner and Jaipur, Head Office, Tilak Marg, C Scheme, Jaipur-302005, Rajasthan, on or before  15.09.2015 by 3.00PM.

ii) Usual KYC norms like Identity and address proof of Individual/ Firm/ Company are mandatory.

iii) PAN Number and Registration Number with Institute of Chartered Accountants of India / Institute of Cost Accountants of India is also mandatory for applicant.

iv) In the event of gross negligence/ malpractices noticed by the Bank in Forensic Auditor’s conduct/ scope of work, apart from depanelling the firm /company, the Bank reserves the right to include their names in the cautionary list for circulation to all the banks through IBA.

v) Forensic Auditor will be evaluated on the basis of their performance and usefulness to the Bank during review of empanelment by the Bank at an interval as convenient to the Bank.

vi) Bank reserves the right to reject any or all applications for empanelment without assigning any reasons thereof.

vii) On empanelment, the firm/ company will have to give an undertaking with Non Disclosure Agreement clause.

viii) Fee structure would be determined by the Bank as the amount depends on the complexity of work involved, reasonable time the auditor would need to complete the audit and resources required to be deployed for the completion of audit assigned.

3. Parties/ Firms de-empanelled by our Bank or any other Bank/ FIs will not be considered for empanelment with our bank.

4. The panel will be reviewed as and when required and Bank reserves the right to de-panel any of the Individual /company/ firm at any time on observance of unsatisfactory performance/ report.

5. Empanelment will not guarantee any allotment of work by the Bank.

Last Date of receipt of Applications is 15.09.2015.

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June 2021