Empanelment of Chartered Accountant Firms For Outsourcing of Concurrent Audit of SBI
STATE BANK OF INDIA
INTERNAL AUDIT DEPARTMENT, HYDERABAD
EMPANELMENT OF CHARTERED ACCOUNTANT FIRMS FOR OUTSOURCING OF CONCURRENT AUDIT (TERMS OF EMPANELMENT)
1. SCOPE OF ENGAGEMENT :
The Bank have opted that clustering of branches/ outfits is to be strictly avoided. Hence, no Concurrent Auditor shall be allotted more than one branch for Concurrent Audit.
2. ELIGIBILITY CRITERIA :
Those firms which satisfy the following are eligible to apply :
a. Grade 2 and 3 firms as per RBI Grade as on the date of application for this purpose. (CA Firms of Grade-1 may also be considered for appointment, if they are agreeing to the fee structure payable to Grade 2 /3).
b. Firms having at least one year of experience of Concurrent Audit in any Commercial Bank.
c. Firms which have sufficient number of trained representatives of firm articled Clerk trained by ICAI on Concurrent Audit, Retired Officers of commercial Banks, qualified Chartered Accountants as Partner or Associate or as Staff, who will be available on all working days to attend to the Concurrent Audit.
d. Firms chosen for engagement as Concurrent Auditors should be other than the ones selected for empanelment as Statutory Auditors to eliminate any room for conflict of interest.
3. SUBMISSION OF APPLICATION :
Applications are invited from eligible Chartered Accountant Firms for empanelment as Concurrent Auditors in the Bank branches/ outfits . The duly filled in application form in a sealed cover superscribed as “Application for Empanelment of Chartered Accountant Firms for Concurrent Audit should reach the respective Circle Audit Office on or before 16.09.2019 by 5.00 P.M.
i) The application and all correspondence and documents relating to this process must be written in English. The application must provide individual and factual replies to specific questions asked in the application. Documents submitted should be complete in all respects as required.
ii) Application marked Annexure-A needs to be submitted duly filled in with required particulars accompanied by self-attested supporting documents. All supporting documents to Application must be self-attested by the authorized signatory for the applicant firm.
iii) Incomplete application without required supportive documents will not be considered by the Bank.
4. LAST DATE FOR SUBMISSION OF APPLICATION
The last date for receipt of application is 16.09.2019. Please note that no application shall be accepted after 5.00 p.m. of the above date. Application submitted after due date or after the stipulated time of the due date or incomplete in any respect are liable to be rejected. The dully filled application along with the supporting documents should be submitted to the concerned General Manager (IA), Circle Audit Office (CAO) as per the Geographical location ————(CAO of Respective geographical area as per Annexure-C).. SBI is not responsible for non-receipt of completed application within the specified date and time due to any reason including postal delays or otherwise.
5. MODIFICATIONS AND/OR WITHDRAWAL OF APPLICATION
Application once submitted will be treated as final and no further correspondence will be entertained. As no subsequent modification of application/documents are permissible, the firms are advised to exercise utmost care in preparation and submission of application / documents.
6. OFFERS BY A THIRD-PARTY
The applicants are not permitted to authorize their Agents/brokers etc. (including individuals and/or third party firms/companies) to either collect or submit the application/ documents on their behalf. The Bank will summarily reject such requests and arrangements. No sub-contracting of the engagement is permissible.
7. SELECTION PROCESS :
i) Applications received, complete in all respect and within the prescribed time, will be scrutinized on the basis of the basic eligibility criteria as given above at Para 2 by a Selection Committee formed for the said purpose. Applications not accompanied by all the required details and supporting documents would be liable for rejection.
ii) The Bank reserves the right to disqualify any or all applications either on the basis of their responses without assigning any reasons, whatsoever. Those applicants who satisfy the requirements and specifications as determined by the Bank as per the terms and conditions of this document shall be short-listed.
iii) Those applicants who fulfill all the basic eligibility criteria will be evaluated based on location of firm, residential status of partners, experience, reputation, availability of sufficient trained personnel (ICAI Trained article clerks/ retired commercial bank officers) with the firm and such other factors as the Bank may deem fit for its requirements, will be taken into account to the possible extent in empanelment and allotment of concurrent audit works to the firms finally selected.
iv) The prima facie scrutiny of the applications will be done by a Screening Committee.
v) The final selection of the CA firms will be approved by a Selection Committee.
vi) Bank also reserves the right to make query with the firm or any other agency, ask for additional information, particulars, and submission of one, some or more undertakings from any firm at any point of time. None of such act shall be deemed as an offer of engagement as Concurrent Auditor by the Bank to the firm unless and until Bank intimates in writing to the firm regarding allocation of any branch / unit for concurrent audit.
vii) Details of Terms and Conditions in respect of empanelment are as per Annexure-D.
8. OTHER TERMS & CONDITIONS :
i) Preference will be given to those firms which have ICAI trained Concurrent Auditors and those firms which have concurrent audit experience in State Bank of India (SBI).
ii) Concurrent Auditors shall normally be positioned at the location where the selected Branches / BPR Outfits operate.
iii) Concurrent audit to be done on daily basis. Trained representative of the firm (Articled Clerk trained by ICAI on concurrent audit) / retired commercial banks officers /qualified Chartered Accountants to be available on all days.
iv) One of the Principal Partners or senior partner to visit the branch at least 2/3 times a week, minimum 8 times every month, depending on the business and risk profile of the branch/BPR Outfits. Number of visits may be increased depending upon the volume and need at the branch / outfit under concurrent audit.
v) Bank will impose financial penalty for unauthorized absence, non-detection of income leakage, major lacunae in conduct of account including reporting to RBI/ ICAI.
vi) Bank may impose non-financial penalty leading to termination of contract for instances of failure to comment on fraud, misappropriation of funds, any other serious irregularities which result in loss to the Bank.
vii) The Concurrent Auditor will be fully responsible for the quality of the audit, timely completion of audit and submission of the audit reports and reporting to controllers.
viii) Subject to the other provisions of this document, firm allocated to any branch can be reallocated to any other branch for any period as per the requirement of the Bank.
ix) Documents will be executed by all the partners before taking up the assignment of current audit of allotted branch.
x) The auditors engaged for CA are authorized to have access to any documents and records considered necessary for the performance of their functions within the auditee unit .He can also request members of the staff and management of the auditee unit to supply such information and explanations, as may be needed in carrying out his work, which is to be provided within a reasonable period of time.
xi) Any change in the name, address, constitution and partnership deed must be reported to bank within 15 days of such change with necessary supporting documents. Failing which, it will be treated as deliberate suppression of facts by the firm and thereby making them liable to compensate the bank for such change. In such eventualities, bank also reserves its right to terminate the contract with such firm without notice.
xii) New partners are to sign documents within 15 days of joining and not doing so will attract the provision relating to deliberate suppression of facts.
xiii) Outgoing partner will remain liable to Bank to the extent and period as determined by the Bank on case to case basis.
xiv) The broad areas to be covered in the Concurrent Audit are as indicated in Annexure – B and shall be revised from time to time based on the requirements of the Bank. Concurrent audit will be on line as well as any other method / process to be adopted by the Bank.
9. VALIDITY OF OFFER
The successful applicants have to execute the Contract within 10 days of issuance of work order / letter of selection by the Bank. The Contract should be valid for one Audit Cycle or such extended period as may be mutually agreed upon. Period of contract during the currency of the contract can be varied by the Bank based on its requirement.
10. DELIVERY, REPORTING AND REVIEWING SYSTEM
The Concurrent Audits should be conducted in the branches / outfits as per the agreed time frame as per WBCAS / Bank’s Concurrent Audit Manual, a copy / soft copy of which will be made available to selected firms after allotment of a branch / outfit.
The Concurrent Auditor has to prepare Audit reports as per specified standards/formats as given in the said manual and as will be required by the Bank from time to time.
11. REMUNERATION :
Remuneration payable will be based on the business portfolio of the branch, category of the auditee unit (branch/CPC), specialized nature of work etc., as under :