03 April 2010

Is current Bank Audit Allotment Procedure Just, Fair and Transparent?

Are you disappointed with current Bank Audit allotment process? Let us discuss. Write your comments, compliants and suggestions on this wall.

47 comments:

  1. Prashant Banthia12:58 PM

    Firstly a good move made you where we can comment on something. The way allocation is done is not transparent system, the cooling period has been given to firm who are in category II & III and which are located in remote areas. My few friends who has been allocated for first year are not allocated any bank audit in current year. its seems categorization wise system set up made by RBI has not been followed .Few friends received calls but no allocation was made.........its seems sooner we will have system where negotiations of fees would be done and compromise on audits has to be made. The question remains is this the way the government really wants ? Prashant Banthia

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  2. pradip12:59 PM

    It appears that category allotted to various empannlled firms is of no use as old firms having category III etc. have been allotted the branches having advances of Rs. 50 lacs etc. It appears that, in some of the cases, the higher authorities of the bank and Central Auditors have made unfair allocation of the branch audit. Branches having large advances have been allotted to the Central statutory auditors.

    Are there any norms of RBI in this respect?

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  3. WE HAVE APPLIED FOR BANK BRANCH AUDIT FOR 3 YEARS, BUT ARE YET TO RECEIVE ALLOTMENT ? MOREOVER, NOW ALL PARTNERS IN MY FIRM ARE FCA, ALSO, HAVE GOOD EXPERIENCE RELATING TO BANK ASSIGNMENTS LIKE STOCK AUDITS, SYSTEM AND REVENUE AUDITS, ETC. BUT, STILL WE ARE TO GET ALLOTMENT FOR STATUTORY BANK BRANCH AUDIT.

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  4. Anonymous1:02 PM

    Sir, our Partnership Firm Categorised under Category IV with MEF 09175 and UCN-124240.From FY 2005-06, no Bank Branch Audis are allotting to our Firm.We had made complaints to pdcicai.Reply recd. from PDC is that our firm is cover under Non Continuing Auditor as per RBI.PDC representative Mr.Kamal Agarwal has sent our querries to RBI, but still no reply has been recd.

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  5. Anonymous1:18 PM

    Though seneority of our firm has increased by one year compared to last one with 3 full time partners; branches allotted to us are half in size compared to last year. More transparency is needed in size of the branches being audited to firms.

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  6. Rakesh Kumar Chaudhry1:20 PM

    Firstly RBI should directly appoint the statutory & branch auditors as was being done in the past. The process of allotment should be transprent and all categories should get proportionate work as the number of firms seeking audit work is increasing faster than the bank branches. Most important, RBI should fix minimum manhours to be spent on branch audit work to stop bank managements from the rat-race of publishing annual results ahead of each other.

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  7. For transparency, the credit goes to PDC. But the Category is of no use. The Banks have not studied the category, experience of the firm and allotted the branches randomly. Many Category IV firms received larger branches and Category III, II firms received smaller ones. The transparency w.r.t. allotment of the branches is needed.

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  8. mayank dave1:30 PM

    transparency in government sector is only dream and will never be reality so do not bother, try your jack if no jack enjoy year end .

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  9. Anonymous1:43 PM

    How about RTI pettition to RBI for the procedure followed in allotting bank audit?
    Is this not covered under RTI?

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  10. Anonymous1:48 PM

    Inspite of fact that we have mentioned our concurrent audit assignment with certain bank in MEF, our name was forwarded to such bank. We have to reject the request of Bank to maintain our code of conduct and ethics. RBI or our Institute must take preventive steps to avoid such hardship to our members in future.
    CA Yogesh

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  11. Anonymous1:53 PM

    If Bank Audit not allotted to Smaller firm with FCA having more than 10-years experience, then how Auditor can gain Bank Audit experience.So, first allot Bank Audit to each and every Practicing firm of chartered accountant.Reduce allotment from 3 to 1 Bank.

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  12. CA. Malav Mehta2:33 PM

    We are a Category III firm this year with 30 years of experience & Standing. We didnot get the bank audit this year though eligible and not in cooling period.

    First of all, this year's procedure to give power to PSBs to select auditors is not proper and it would surely raise concerns & questions on independence of auditors. I also talked with PDC chairman who told out of the list this year and every year 11000 CA firms donot get work.

    My suggestion & concern remains to give allotment to each and every Eligible firm though it may happen that to give allotment to all, branches per CA firm may decrease.

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  13. Anonymous2:34 PM

    So far I have observed that CA in his individul capacity and proprietory concerns are the least priority sector in the list of the RBI for the allotment of bank branch audit.

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  14. CA Shalin Patel2:36 PM

    The concurrent audit procedure is not transparent. I believe it is based on discretionary powers on bankers or lobbying by someone who has influence. In fact they should give chance to new CAs as they will be future of the profession.

    Secondly, allotment of no. of branches to a CA firm should be minimum so that more CA firms are get appointment as concurrent auditors.

    This experience would also help younger CAs into statutory bank branch audit.

    Regars,

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  15. I have applied this year as a individual capacity ( proprietorship concerns but i think i didint get priority in that and i dont have bank branch audit. i think system to be change and proprietory concern should have audit

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  16. CA Mahesh3:11 PM

    Once a valid COP is given and initial period of 3 yrs over, any CA should be treated at par with others and discrimination as new and senior should not be done. Juniors and Seniors have their own advantages and disadvantages. Its debatable issue. Only discrimination should be done after critical evaluation of quality of work done. Everybody should have an opportunity to deliver his service. It will also balance the heavy workload on CERTAIN CAs and result in better quality work. Current system is not a good system at all.

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  17. Anonymous3:35 PM

    totally dis-satisfied with this system. Not received any bank audit till date and working from a small town, no cooling period in that region.

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  18. sumitsahu4:18 PM

    do you really think there is some procedure... i feel they are allotting audit on random basis... i got allotment when i had just completed 2 years in practice then after that i got no audits till date.

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  19. Anonymous5:20 PM

    Basically whatever the procedure followed this year is not proper at all . How we can be in cooling period for more than 3 to 4 years ?. Some Auditors are getting the audit without any cooling period from last 8 to 9 consecutive years (even same bank branch for last 3 year ). The way in which bank audit alloted , it seems that there will be no independance of auditor. .......CA Nilesh Baheti

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  20. Anonymous8:24 PM

    I asked to Nagar Saheb to talk with CCM and each RCM regarding present procedure of allotment of CSA and SBA.I heard from reliable sources that if you jack and cheques then your firm will be selected as CSA.So,it is effortless and meaningless.In Our profession Big firm is increasing business and S&M practicing firm can't survive.So, it is advisable to arrange to campus placement programme for CA's who doing practice but not success.

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  21. Anonymous9:04 PM

    Ashwinbhai what's your opinion.Pl.also provide your feedback regarding present procedure of allotment of Bank Audit.Whether you are watching dog and have any plan of bomb blast at institute level.

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  22. Anil Nagar10:02 PM

    Yes the current system is not transpert. Our's is a full time two partner firm category III still this year we have not alloted any bank. Even one of my friend having category II have alloted only one branch by the bank. Then what is the use of having this partnership and RBI categorisation.

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  23. Anonymous10:07 PM

    Do the Fellow Chartered Accountant with 21 years of experience have to wait when his Proprietorship firm would get the first statutory branch audit. I wish the clarification on allotment of branch audit procedure be published on the Institute website immediately. Does Bank think that 21 years of experience is not sufficient for doing statutory branch audit.

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  24. G. N. Patki- Dombivli - Dist Thane.11:53 PM

    Dear Ashwinbhai,
    Let me in the beginning congratulate you for starting this discussion forum on such a hot topic of Bank Audits. It is indeed brave on your part to undertake such an exercise because nowadays nobody wants to hurt the big and the powreful.By big and powerful, you know whom I mean.
    a)Now coming to your topic. You know what reply I recd. from a major nationalised Bank audit dept. when I went there for enquiry about Stat. Br. Bank audit? The fellow said they have 1000 audit firms who have not completed 4 years cycle. Assuming each of these firms is given 3 branches, all their auditable branches will easily get covered by these existing audit firms only. Where is the place for new firms or firms completing the cooling period? So my friends,if your Firm goes in cooling period,or if you are a new firm, just keep cooling your heels. You are as good as in deep freezer.You may never get a chance again as has happened with our Firm.
    b)The position on RBI side is no better. They simply want to wash their hands off this whole process of audit allottoment as early as possible. The purpose of giving autonomy to Banks for appointing their own auditors is exactly that. Here I entirely agree with our President, Shri Chopraji, that RBI must not abdicate its responsibility in this matter. Nowhere the top Management appoints auditors entirely on its own. In private sector, one can atleast understand the motive behind such a move.(Don't forget the Satyam saga. It happened because Raju appointed his own men as auditors.That itself should alert RBI.) But in Public sector Banks where
    thousands of crores of public money is involved, this type of arrangement will, I fear,will be dangerous to say the least. What our President Chopraji says is right. RBI should step in as Regulator and not as a mere spectator. My second suggestion is that, those Firms,which are left out in this Stat.Branch audit process, should be accomodated in some other audit work like RRB audits, NBFC Audits or CAG audits etc. The same standardised panel can be used for this type of work also. This step should be taken urgently. Otherwise this whole process will breed cynicism and bitterness among C.A. fraternity. We C.A.'s will start fighting among ourselves like Yaduvanshi sena of Lord Krishna. I Hope you will take up the suggestions at proper forum. Once again thanking you and sorry for a bit longish observation. -G.N.Patki

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  25. Dear Ashwinji,

    According to us the current syastem is not fair & Transperent.In the current system of allotment there are a lot of loopwholes.
    We are firm of Chartered Accountants practicing in the name as Modi & Agrawal Chartered Accountants, Aurangabad M.S.with branches at Dhule M.S. & Pachora Dist.Jalgaon M.S. Our RBI Unique Code No is 215331.We are in Catogory III as per the norms. We
    are having Three Partners of which all the partners are FCA.
    We have yet received any Statutory Bank branch allotment for the
    Financial year 2009-2010
    Even the sole proprietory firms have got the allotment but our
    firm having Three FCA Full time partners have not the allotment yet.

    We are thankful to you for setting up such a platform for sharing our problems & greaviences

    CA Prashant Agrawal

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  26. Anonymous10:06 PM

    Why so much discussion on allotment of Bank Audits? I think the bank audit ensures good remuneration with minimum efforts (if you get allotment)
    If the number of applicants is more than the available branches, the banks should try to allot only one branch per applicant, so that there will be justice to larger number of CAs. MOREVER COMPARED TO OLD FIRMS SMALL AND NEW FIRMS DEPEND MORE ON SUCH ALLOTMENTS

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  27. CA Hemant Dalal9:28 AM

    Ours is a firm of three FCA chartered accountants. we were getting the statutory audits upto 31-03-2007 on a regular basis. Since then we have not been allotted any audits. It is said that the cooling period is of two years and we were quite hopeful to get the assignment this year. But no branches have been allotted for consecutive third year also. There seems to be no set system for allotment of audits of the bank.

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  28. Anonymous11:13 AM

    dear shri Ashwinji

    I am CA Yogesh Shah(M.No 044305) Baroda

    since 15 years i am applying for Statutory Bank Branch Audit but I am not getting the allotment. hence i have volunterly not applied last year. During the current year I am going to apply.
    I am a proprietor and partner in two firm for last 4 years. now i am only proprietor w.e.f.01.01.20010 pl note

    If u feel please respond me for your valuable guidance.

    thanks

    CA Yogesh Shah

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  29. Anonymous11:15 AM

    I got bank audits for the years 2006 & 2007 and not after that, there is no transperancy at all. All should be given equal chancem reduce the number of branches to 2 per firm from the current 3

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  30. Anonymous12:32 PM

    It is very disheartening that our firm which has now completed 3 yrs of standing has not been alloted ban audits till now & other firms are getting 3 branches alloted. There should be a proper rational wherein even relatively young firm should also get allotment & the 3 branches allotment to senior firms should be reduced.

    Ritesh

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  31. Anonymous6:00 PM

    Current policy of Allotment is unfair & injusties to a small propritor firms.colling time of 2 years to be observe in all cases
    There is unfair in cotinious allotment for 7 years & in exteding the time of cooling years of about 3 to 5 or even unlimited years

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  32. It is very disappointing that our firm which has now completed 26 years of standing has not been alloted bank audits From 2007 onwards & other firms are getting 3 branches alloted. There should be a proper rational wherein even a firm such rich experience of bank audit is been left out while allotment.

    CA Kalyankumar
    kkcom@pn3.vsnl.net.in

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  33. I am applying since last seven years continuously, but still waiting for allotment..

    CA. RAVI KABRA SURAT

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  34. vishwas8:20 AM

    There is no fair practice while giving audits. They are giving 2 to 3 branches to one person at different locations. Why should'nt they distribute fairly to all CA's with at least one branch. I have marked ineligible in empanellment list reason is not given. At least someone should take step to resolve this.

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  35. Anonymous12:44 PM

    Bhai thode dino me pure sal ki office ka kharcha nikalta he to har CA ko Bank Audit allot nahi hone ki taklif to hoti he.Lekin overall system me transparency nahi he.Hum to chhote log he bade hathi kya karte he kaise malum chalega.Bas noble profession me bhi politics aa gayi he.Jyada kya likhu.

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  36. Anonymous2:56 PM

    Dear all,
    If we compare the bank branch audit of the banks from other countries like Austalia S Koria, Canada(where nationalised banks exist with private banks), we will find that the almost all banks themselves appoint the branch auditors. I don't understad why the CA institute or RBI are taking the active participation in this process.

    In my opinion, the fear of compromise on quality and pressurised reporting are unwarranted. Our insititute should remain confident about our very own professional ethiks and code of conduct and their very own CAs.

    The private banks, some of which are far larger than nationalised banks, regualrly appoints their own branch auditors. and till date except GTB bank, we have not came across any major lapses.

    Bank branch audit should be kept at the descretion of the bank itself. Let them appoint the bank branch auditors in their AGM. The role of the ICAI is to monitor, upkeep the professional standards and to regualate and prosecute the guilties. ICAI and RBI are unnecessarily carrying this burden on their shoulders.

    The enthusiasam of ICAI in this process sometimes create unnecessary doubts for the intentions.

    Thanks and regards

    Rahul

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  37. Anonymous10:48 AM

    c.a. with 20 or 30 years seniority running a prop. concern is alloted smallest and rural bank branches whereas freshers are considered in higher category in first yr itself if they join together as partners !!

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  38. Anonymous10:49 AM

    Complaint regarding Non Allotment of Statutory Bank Branch Audit

    Ref.: Firm registration No. :125775W
    Unique Code No. :000228

    Dear Sir,

    We are a partnership firm having our office at Nagpur. The firm is established in the year 2004 and one of the partner is Fellow member of the Institute since formation of the firm. All the three partners are exclusively associated with the firm and not engaged elsewhere. One more partner has become the fellow member of institute in the December 2009.

    During the last six years we have been victim of the discrepancies in the system of allotment of branch audit of a public sector banks and despite of being empanelled we have not been allotted any branch audit.

    The following facts are submitted for your consideration and early action

    I. For the FY 2006-07 we have been empanelled with the Andhra Bank vide MEF No. 03223. No branch was allotted to us. During this year we have noticed that around six firms were empanelled on Andhra Bank from Nagpur City whereas bank is having only one branch in the Nagpur city.

    II. Again for the FY 2007-08 we have submitted our application vide MEF No. 19087 and we have classified as category IV by the PDC. Surprisingly we were not empanelled on any Bank in this year.

    III. For the FY 2008-09 we have submitted the MEF and category III is allotted to us. We have intimated out indebtness with Union Bank of India and Dena Bank to PDC vide our intimation dated 15/01/2009. Surprisingly we have received call from the Union Bank of India for the allotment of branch audit and also received appointment letter from Dena Bank. Due to the above technical reason we have communicated our inability to accept the audit.

    What we want to point out here that we have not received any call from any other bank and more particularly the call from the bank where we are not eligible smells some wrong practices in the system of allotment of branch audit.

    IV. For the FY 2009-10 we have again applied vide MEF No. 19087 and category II is allotted to us. During submission of MEF itself we have intimated our indebtness with Union Bank of India and Dena Bank.

    Till date we have not received any call or letter of appointment from any bank despites having category II firm.

    Thus in our case the result of four year of empanelment is “No Bank Branch Audit” and the firm may be selected for the cooling period due to empanelment for last four years.

    We earnestly feel that what has happened with us requires a close scrutiny from the Professional Development Committee and we may be put to justice.

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  39. Chandan12:36 PM

    I have observed that the bank branch audit allotment system is neither transparent nor justified. Lot of CAs in Category IV have got audits better than Category III & II CAs. The allotment system does not take into account experience and standing of the firm.

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  40. Instead of alloting 3 branches the number should be suitably reduced so that everyone is covered for audit. Also instead of resting period everybody one should audit with less number of branches. While resting period should be applied to the firms situated it that city only instead of whole district. As firms in rural areas have comparitively less work in hand during the whole year. Considering the time alloted by the banks for completion everyone should decide to do quality audit instead of more branches. ICAI should take lead in this after taking views of the members.
    Regards,
    CA. GAJENDRA BANDI

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  41. CA C.S. RACHHA6:53 PM

    Off course I am very much disappointed with current Bank Audit allotment process. Audit Allotment should be done past allotment process there was somehow 70% transperancy in the allotment of Branches of banks.

    CA RACHHA C.S.

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  42. Anonymous10:44 AM

    Dear All,
    The SO CALLED Procedure of Bank Audit allotment is nothing but eye washing. If you have good relationship with Bankers or other regulators, you will get bank Audit assignment. If you don't have, destiny prevails !!!!
    This time number of cases have found, Where CA firm falling due for cooling period. But they have not, Interestingly, Their Bank has changed, How it happens, Only God and those firms know !! , This is a first fruit generated by Managerial Autonomy to PSBs for appointment of SBAs [And Now for SCAs also in case of SBI].
    It's mu humble appleal to all readers that for the sake of future of our profession, Please, Bring such cases to notice of ICAI, So as to enable to put strong argument before Cent. Govt. for withdrawl of Autonomy.
    Last year so many people recollected Late Mrs. Indira Gandhi for her Bold action of nationalisation of banks. After 40 Years importance of her decision felt b'se, Banks in India remained largely unaffected by Global collepse of Banking system.
    Believe me, 10 Years down the line, Govt.and all other stake holders will realise worst face of managerial autonomy for appointment of Auditors for PSBs.
    It's time to reconsider whole cumbersome, time consuming, costly and also eye washing process of MEF. Is is really a multipurpose ?, Hardly so!!! Evidence being, Recently one of PSBs announce empanelment for concurrent Audit. I strongly believe, that list provided by RBI,should have been followed, But intentionally they won't, As this is not for empanelment but to invite influenced CAs to activate their contacts !!!!

    Neither I nor You can alone change the future but YES, We together can make a remarkable difference.

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  43. Anonymous12:34 PM

    the process is higly disappointing. our firm was cat II firm and had finished 5 yrs with sbi last year. no communication was received from anywhere this year . we did not even knew where our name was. after 31st march we got to know that the name has been sent to united bank of india . when confimed from the bank they told us that the list was sent to them on 28th of march and the branches has already been finalised so new appointments could be made further. it was also told to us that list of 50 firms were sent to them who had retired from sbi and allotment was made to none. finally we did not got any allotment this year . the case itself makes it clear how fair and justified the process is

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    ReplyDelete
  45. Anonymous11:43 PM

    We are Category II firm We are Receiving only two bank Audits.There Should be some Accountability of Banks to tell that what is the reason of getting Less Audits

    ReplyDelete
  46. This comment has been removed by the author.

    ReplyDelete

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