AUDIT & INSPECTION DEPARTMENT
HEAD OFFICE, KOLKATA
Dated: 29th July, 2017
[FOR EXPRESSION OF INTEREST FOR EMPANELMENT OF CONCURRENT AUDITORS]
LAST DATE FOR SUBMISSION OF APPLICATION 18.08.2017
UCO Bank invites online applications from practicing firms of Chartered Accountants within India, in the prescribed format, who are willing to have their firms empanelled as Concurrent Auditors of the Bank.
The CA firms already on the job of doing concurrent audit of branch (es) allotted to them are also required to apply online for getting renewal of existing assignment of concurrent audit for the audit year 2017-18. It is made very clear that the existing assignment to concurrent auditors, based on the application submitted in response to notifications published during the previous years will not be automatically renewed and they will have to apply online for renewal of existing assignment of concurrent audit for the audit year 2017-18 i.e. from 01.10.2017 to 30.09.2018.
I. ELIGIBILITY CRITERIA FOR EMPANELMENT:
a) CA firm should preferably be a partnership concern having experience in the field. The Bank may also consider the sole proprietorship concerns and in that case they would be required to submit a declaration that they are full time practicing Chartered Accountants and are not employed elsewhere and do not have any other business interest.
b) Audit firms should preferably have qualified Information System Auditor (CISA/DISA) with necessary exposure of system audit. Since all the branches of the Bank are fully computerized, system audit shall form an integral part of audit of the bank.
c) Audit firm should not have been disqualified by any Bank IBA/RBI/ICAI, while taking-up audit work on earlier occasions.
d) Weightage would be given to the CA firms where the partners themselves are ex-bankers or the firm(s) 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) Weightage will be given to a firm having exposure in conducting concurrent audit of the Bank branches for 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. The Headquarter or branch of the CA firm should be located at the place for which they wish to take up audit work. Preference would be given to CA firms which are located at the places of our Bank’s Branches.
h) The assignment should be carried out in a professional manner and in case of any misconduct or negligence; the Bank is free to report the matter at any time to ICAI / IBA/RBI. This will be in addition to the disengagement from the Concurrent Audit assignment.
i) The firm will not be allowed to sub-contract the audit work assigned to any outside firm or other persons even though such persons are qualified chartered accountants.
j) A declaration to be furnished by the firm that credit facilities availed by the firm or partners of firm in which they are partners or directors, including any facility availed by a third party for which the firm or its partners are guarantor/s, have not turned non performing asset or are existing non- performing assets, as per the prudential norms of RBI. In case the declaration is found incorrect, the assignment would be immediately terminated, besides the firm being liable for any action under !CAI/ RBI/IBA guidelines.
k) The firm should execute undertaking of fidelity and secrecy on its letter head in the format prescribed by the Bank.
l) Concurrent Auditors would have to sign Do’s & Don’ts statement in order to have proper arms length relationship with the Branch/ Department of which they are conducting Concurrent Audit. Such undertaking would be submitted annually.
m) Any other terms and conditions of the assignment as decided by the Bank from time to time.
II. SCOPE OF CONCURRENT AUDIT:
III. REQUIREMENTS FROM AUDIT FIRMS:
III. TERMS & CONDITIONS:
Applications received from the Chartered Accountant firms in response to the notification, within the given time limit and in the given format fulfilling the prescribed eligibility criteria shall be empanelled by the Bank. The panel shall remain valid for a period of one year i.e. from 01.10.2017 to 30.09.2018 thereafter it would be automatically lapsed.
(b) Engagement of Concurrent Auditors & other conditions
(i) Suitable firms would be identified for each assignment and be approved taking into account their experience and exposure, similar activity carried out for the Bank or other banks, availability of adequate trained resources, location of the audit unit etc. Such approved Concurrent Auditor’s firms would be issued letters of engagement by the Audit & Inspection Department.
(ii) The tenure of the concurrent auditor would be initially for one year and would be subject to fresh renewal every year and can be extended maximum up to a period of 3 years overall at bank’s discretion.
(iii) After completion of specified maximum period of three years, cooling period of one year would be observed for a firm to become eligible for engagement. This will be purely at the discretion of the Bank and no rights whatsoever accrue to the firm for such engagement.
(iv)The concurrent auditors should adhere to the audit coverage strictly as per the scope as may be decided by the Bank from time to time.
(v) The concurrent auditors should not undertake any other activities / assignment on behalf of the branch or unit, other than the activities for which they are engaged, without obtaining the concurrence of the Head Office, Audit & Inspection Department in writing.
(c) Period of Audit/Assignment:
External Audit firms empanelled/selected would be engaged for a period of one year i.e. from 01.10.2017 to 30.09.2018 for the branches/offices identified for monthly/Quarterly concurrent audit.
(d) Performance Review:
The performance of the empanelled firms would be periodically reviewed, at least once a year and if found unsatisfactory, the Bank may remove the name of the Concurrent Audit firm from the panel of the bank for a minimum period of two years.
The empanelled firms may be de-empanelled at the Bank’s sole discretion. If the performance of the concurrent auditor is found unsatisfactory or any serious act of omission or commission is noticed in their working, their engagement may be cancelled at any point of time. If felt necessary, the matter may be reported to ICAI and/or RBI/IBA for necessary action.
(f) The Online application only shall be considered submitted between 29th July 2017 to 18th August 2017. Please note that while filling up online application, the system will display the APPLICATION ID and PASS WORD at the top of second page of online application i.e. after clicking SAVE & NEXT button of first page. Please note the same immediately for your future reference.
After Final SUBMISSION of the application, the system will not allow to edit or modify your application. Please take the print of your submitted application immediately after clicking FINAL SUBMISSION for your future reference and record.
(g) Documents to be submitted with the application.
No documents need to be submitted with online application. But in the event of any Firm being selected for engagement as concurrent auditor of any of our branches, they are required to furnish printed copy of online application duly signed by the authorised person, self attested photocopies of all documents along with Original documents in support of their credentials furnished in application to their respective Field Inspectorate for verification and record. The originals will be returned after verification.
In case any of the information furnished by the Firm in application found to be inconsistent with Original documents, the selection of the Firm will be cancelled forthwith. Further, if any such inconsistency(ies) noticed subsequent to engagement even post verification of documents, the engagement will be discontinued with appropriate reporting of Firm’s name to RBI/IBA/ICAI etc.
The Bank shall send engagement letters to all selected Chartered Accountant firms through respective Field Inspectorates having jurisdiction over the concerned branches. However, CA firms which do not get our letter of engagement are to be treated as ‘not selected’ and no further correspondence shall be entertained in respect of fate of their application.
THE BANK RESERVES THE RIGHT TO ACCEPT OR REJECT ANY APPLICATION AND ANNUL THE PROCESS AT ANY TIME WITHOUT ANY LIABILITY AND ASSIGNING ANY REASON THEREOF.
(h) Evaluation of applications:
The applications received by the Bank would be screened by a Committee of Executives constituted for this purpose, which will consider empanelment of CA firms on a scoring system based on their experience, CISA/DISA qualifications, number of partners, seniority, CA firms having tie-up with Ex-Bankers etc. and any other factor considered necessary by the Committee for which the decision of the Committee shall be final.
Merely meeting the eligibility criteria shall not automatically entitle the firm for empanelment. After empanelment, the work will be alloffed as and when need arises at the sole discretion of the Bank. The empanelment will not give any right to the empanelled firms for carrying out the assignments. The Bank reserves its right to cancel any or all the offers without assigning any reason whatsoever.
(i) Selection of Concurrent Auditors:
Selection of Concurrent Auditors shall be made from among the applications received from the chartered accountant firms by the Audit & Inspection department on the basis of a scoring system. The approval of the selected concurrent auditors would be done by a committee consisting of three General Managers. The General Manager (Audit & Inspection) shall be the chairman of the committee. The list of selected concurrent auditors would be placed before the top management of the Bank i.e. Executive Directors and Managing Director & CEO for final approval.
V. Payment Terms:
The audit fees shall be paid to the firm as decided by the Bank from time to time and mentioned in offer letter for allotment of assignment, on submission of the relevant audit reports and the relevant bill along with supporting documents. The following schedule of fees being paid by the Bank depending on the volume of advances at the branch.
No out of pocket expenses or travelling allowance/ halting allowance would be paid to the Concurrent Auditors. However, Goods & Service Tax etc. would be paid as applicable in addition to the Audit Fees. The payment to Concurrent Auditors would be subject to TDS at the applicable rates.
The amount of Concurrent Audit Fee payable would be as under:
|S. No||Range of Advance level of the Branch||Audit Fee ( t )|
|Monthly Concurrent Audit Branches/Offices:|
|1.||Advances up to Rs. 25 Crores||Rs. 12,000/-(Per Month)|
|2.||Advances above Rs. 25 crores & upto Rs. 75 Crores||Rs. 15,000/-(Per Month)|
|3.||Advances above Rs. 75 Crores & upto Rs. 150 crores||Rs. 18,000/-(Per Month)|
|4.||Advances above Rs. 150 Crores & upto Rs. 500 crores||Rs. 20,000/-(Per Month)|
|5.||Advance above Rs. 500 Crores||Rs. 25,000/-(Per Month)|
|6.||Service Branches||Rs. 12,000/-(Per Month)|
|7.||Treasury Branch||Rs. 25,000/-(Per Month)|
|8||Corporate Department – H.O. (For 2/3 departments)||Rs. 25,000/-(Per Month)|
|Quarterly Concurrent Audit Branches/Offices:|
|1||Depository Service Branch|