(A Govt of India Undertaking)
Inspection & Audit Department
Head Office, Koti, Sultanbazar
4th Floor, Hyderabad – 500 095
Empanelment of Chartered Accountant firm for concurrent audit assignment of Andhra Bank (2018-2019) 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.
2 Applicant should be a partnership firm, with minimum two partners as FCAs / Proprietary 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. Weight age shall be given to firms where partners themselves are ex-bankers or the firm has got tie-up with ex-bankers with suitable experience and exposure. Due regard will also be given to firm having partners completed certificate course in Concurrent Audit of Bank, conducted by Institute of Chartered Accountants of India.
4 Auditing and Reporting need to be done through on line Risk Based concurrent Audit module(RBCA), computer proficiency shall be required.
5 The gradation of auditors shall be based on gradation suggested for branch statutory auditor appointment.
6 Period of the assignment is from April 2018 to March 2019 and the last date for submission of application online is 17.03.2018 .
7 The tenure of the concurrent audit would be initially for one year and would be extended for further period of two years (overall three years), based on the performance of the auditor every year.
8 The audit firm will be responsible for not reporting serious irregularities / discrepancies / frauds / gross negligence / malafide intention (with or without financial loss). Bank reserves the right to terminate the audit assignment besides notifying such deficiencies and incompetence to the Council of ICAI / RBI / IBA.
9 The concurrent audit is to be carried out in a professional manner as per guidelines issued by ICAI /RBI /GOI and our bank from time to time . In any case of misconduct & negligence , the Bank is free to report the matter to ICAI/RBI under the guidelines from time to time.
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 assignment.
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 incorrect, the assignment would get terminated besides the firm being liable for any action as per ICAI/ RBI guidelines.
14 The Firm/ any partner of the Firm should not be Statutory auditors of our bank for the year 2017-18.
15 The Firm/any partners should not have any disciplinary matters pending with ICAI/ RBI and they should not have suffered any disqualification including Section 143 of the Companies Act.
16 The audit Firm provisionally selected only, will be intimated . However no individual intimation shall be sent to un selected applicants.
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 Concurrent Audit also includes short inspection. Short inspections are to be conducted as per the directions of administrative Office and the report should be submitted to the concerned Zonal Office / Head office department.
20 Concurrent auditors are required to carry out Limited review of accounts for all specified quarters.
21 As a part of concurrent audit , any additional assignment as warranted by the Bank/GOI/RBI shall be entrusted .
22 The Bank shall always have the right to cancel the allotment, at any time during the currency of concurrent audit.
23 After completion of specific period, the firms may be considered for audit assignment in other locations or areas. Cooling period of two years would be observed for a firm to become eligible for appointment as concurrent auditor of the Bank. This will be purely at the discretion of the Bank no rights whatsoever accrue to the firm for such appointment.
24 Verification of Forex Transactions: (applicable to all “B” category branches)
1. 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.
2. 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.
3. 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.
4. Verify the SWIFT messages sent through branch and certify the that they are accounted in CBS and there is underlying transaction
5. Concurrent auditors to carryout verification and assurance of the “BOE Settlement” process in IDPMS
6. Concurrent auditors to carryout verification of the document evidencing Import other than which are available in IDPMS e.g. exchange control copies of appraisal forms or Customs assessment certificates etc.
7. 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, Head Office.
25 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 (RBCA). The reporting of audit is to be done through on-line RBCA module and to be submitted monthly.
26 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.
27 The fee for concurrent Audit ranges from Rs. 13,000 to Rs. 26,000 p.m based on size of business of the branches.
In addition to the monthly fees, the following additional payments are also payable
28 Fee will be paid upon submission of audit report online. Penalty by way of deduction of fee by 10% would be imposed , if the online report is not submitted by 10th of the succeeding month.
29 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.
30 A tentative list of centers proposed for concurrent audit is here. Bank is at liberty to add or delete centers as per need.
31 The selection is based on requirement and at the sole discretion of Bank .
32 Concurrent Auditors, who are already conducting Audit of our Branches and have not completed three years of tenure , need not apply.
33 A Unique acknowledgement number for each completed application will be generated and the same will be displayed on the website immediately after submitting the application. This shall serve as a future reference number for the Bank/Firm/Company.
34 Mere submission of application does not confer any right to the audit firm for allotment of concurrent audit by the Bank.
DO’S AND DON’TS FOR CONCURRENT AUDITORS(CA FIRMS)
1 Pre concurrent audit study of the branch/ department should be done getting all relevant information and off site surveillance reports of the auditee as stated in the engagement letter.
2 Prepare proper audit plan based on 1 above, covering all the areas of the scope, keeping in the view the time lines.
3 Have a structured introductory meeting with the auditee and seek all the information required in advance with proper time schedule. Introduce the audit team to the auditee officials.
4 Audit team should be accompanied by senior and experienced members as required
5 Auditors to display team spirit and avoid misunderstandings/ arguments in the presence of auditees.
6 Discuss the findings of C.A., with branch officials on daily basis and try to get the defects rectified then and there itself immediately.
7 Give auditees a chance to express their opinion while discussing the issues. Getting proper explanation in a co-operative atmosphere will save precious time.
8 In case of difference of opinion with auditee, the auditor should first discuss with the leader of his team. Further discussion on a higher level may be made, if required.
9 In case, auditor comes across any information which causes him to suspect any element of fraud, gross negligence, gross incompetence or similar unfavorable actions or tendencies, he should report the matter to the leader of the team immediately.
10 Auditors have been advised to report immediately, on noticing serious irregularities to the controlling office / Head Office, without waiting for the submission of the entire report
11 The Auditor / Audit firm will be responsible for not reporting serious irregularities / discrepancies / frauds/gross negligence/malafide intention (With or without financial loss). Further the Bank reserves the right to terminate the audit assignment besides notifying such deficiencies and in competencies to the Council of ICAI / RBI/ IBA.
12 Auditor should keep utmost secrecy of the information/ audit observations/ issues etc. relating to the auditee.
13 Be courteous, cooperative and professional.
1 Auditor should not have any professional or commercial relationship either direct or indirect with borrowers/ beneficiaries of the branch / department which they are auditing and also will not have in future as far as possible for a minimum period of three years.
2 Auditor should not take advantage of his association as concurrent auditor with the branch/ department of the bank and canvas for any client/ business with the bank either directly or indirectly.
3 Auditor should not represent on behalf of any client/ customer of the bank for a minimum period of as far as possible three years after the completion of term of the audit.
4 Auditor should not share/ pass on/ discuss any audit related observations/ issues/ findings with any one other than concerned in the bank.
5 Auditor need not act overly reserved or unfriendly in order to maintain his independence as an auditing officer. A forbidding attitude on his part may well cause others to adopt the same attitude towards him. This can adversely affect the work entrusted to the inspecting officer.
6 Auditor should not get involved in heated argument with auditee.
7 Auditor should not give orders to auditee and seek requirements from the officer assigned to assist him on a particular job. The concerned officer would issue the necessary orders to their employees if he accepts inspector’s suggestions and recommendations.
8 Auditor should not delay the submission of audit report
Applications need to be submitted on line only. No need for submission of physical copies.