The application should be as per prescribed format from practicing firms of Chartered Accountants/ Retired Officials of own Bank who are willing for empanelment as Concurrent / Revenue Auditor in the Bank for year 2018-19 .
Applications for Concurrent / Revenue Audit of Allahabad Bank
The panel of auditors maintained last year (including existing concurrent auditors) expiring in September 2018 will not be further used. Hence, all the concurrent auditors selected earlier have also to apply afresh for the empanelment process.
The applications should be submitted to the ‘Assistant General Manager, Allahabad Bank, Inspection Deptt, Concurrent Audit Cell, Head office, Fourth Floor, 14, India Exchange Place, Kolkata -700001‘ by Registered or speed post / courier only.
“Application for empanelment for Concurrent/Revenue Audit-2018-19” (FRESH/RENEWAL) should be mentioned on the envelope carrying the applications.
The following type of audit firms are not required to submit their application :
(a) if Firm / it’s proprietor / any partner has been disqualified / depanelled or whose appointment has been terminated by RBI/ ICAI/ Bank / any other Bank on an earlier occasion.
(b) Audit firms who have conducted statutory audit of Allahabad bank branches for the year 2017-18.
(c) Associate concerns of Audit firms who have conducted statutory audit of Allahabad bank branches for the year 2017-18, defined as under by RBI:
All enclosures must be attested as true copy under seal by the proprietor / at least one partner (in case of partnership firm).
The application form should be signed in full by all partners.
Any change in the application format will result in rejection of the same.
The last date for receipt of applications is 20th August, 2018 upto 5.00 p.m.
Selection and eligibility criterion of external Concurrent Auditors :
Basic Criterion :
Appointment of external Chartered Accountant firms as Concurrent Auditors will be done with the following basic criterion :
i) The audit firm preferably should be in the RBI panel (as per gradation based on the size of the branch to the extent feasible).
ii) Weightage will be given to the audit firms where the partners themselves were ex bankers, DISA, CISA holders.
iii) Preferably it should be a partnership firm of Chartered Accountants.
iv) Experience in Statutory/Concurrent Audit of banks will also be examined.
a) The firm should have necessary office set up and adequate personnel to ensure proper deployment and timely completion of the assignments.
b) The firm has to disclose if it has been debarred by ICAI / RBI / Allahabad Bank in the past. In such cases, the firm is not eligible for appointment as Concurrent Auditor.
c) The audit firm or any sister / associate concern / network firm is not conducting the Statutory Audit of the Bank or any of its Branches.
d) The firm should execute an undertaking of fidelity & secrecy on its letter head in the format prescribed by the Bank.
e) Bank reserves its right to review the appointment at any point of time and if necessary, can cancel the appointment by giving one month’s notice, and in case the firm fails to report irregularities, without any notice.
f) The assignment should be carried out in a professional manner and in case of any misconduct & negligence; the Bank is free to report the matter to ICAI / RBI under the guidelines from time to time. This will be in addition to the disengagement from the assignment
g) The firm should be responsible for failure to detect frauds / major deficiencies in implementation of control mechanism / revenue loss etc.
h) Partner of the audit firm should visit Branch as specified below and a confirmation to that effect be obtained from the concerned Branch Managers.
I) Partner to visit Auditee Branch at least once in a week in case of Branch with advance level up to Rs.25.00 Crore.
II) Partner to visit Auditee Branch at least twice a week in case of Branch with advance above Rs 25 crore.
i) The Chartered Accountant firm entrusted with the Concurrent Audit has to submit declaration that none of the partners in their individual capacity or through allied and associate firms are directly or indirectly involved in Concurrent Audit of other Branches of Allahabad Bank. Sub-contracting is strictly prohibited and will be liable for immediate termination of assignment.
j) They will also have to submit declaration that credit facilities availed by the firm or 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 guarantor/s have not turned or are existing as non-performing 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 under ICAI / RBI guidelines.
Terms & Conditions:
1. The tenure of concurrent audit would be initially for one year i.e. from 1St October18 to 30th September 2019 and would be extended for further period of two years (Over all 03 years) based on the performance of the auditor in the last year, after which an auditor could be shifted to another branch/ branches subject to satisfactory performance.
2. After one year of empanelment, fresh application will not be invited from retired Bank officials at the time of renewal for 2nd / 3rd year. Appointment will be extended on the basis of age limit and satisfactory performance in the last year. However, fresh application will be invited after completion of three years.
3. In the case of unsatisfactory performance, the assignment will be cancelled for the next year after giving 30 days notice.
4. Retired officer of own Bank appointed as auditor will carry out the Concurrent Audit related all activities including verification of securities as per Bank norms.
5. The Branch applied by retired staff of own Bank is to be within a maximum distance of 75 KM from his/ her residence.
6. The eligible retired staff of own Bank appointed as auditor will be given audit assignment of maximum two branches at a time.
7. Concurrent Audit is to be done on daily basis.
Fee payable to Concurrent Auditors:
|Branches with total Business as on 31st March 2018||Audit Fee (in|
Rupees, Per Month
|Service Branches /CPH/HUB/Back Office/HO Dept||12,000|
|Up to Rs.50 Cr with Credit outstanding of Rs.15 Cr & above||12,000|
|Above Rs.50.00 to Rs.100 Cr.||13,000|
|Above 100 Cr to 150 Cr||14,000|
|Above 150 Cr to 200 Cr||16,000|
|Above 200 Cr to 500 Cr||18,000|
|Above 500 Cr to 1000 Cr||20,000|
|Above 1000 Cr & FCTM||25,000|
Fee payable for Top 100 branches :
The fee structure for the top 100 branches is additional 20% of normal fee for conducting more focused audit by concurrent audit in top 100 branches including SIBs. The retiree officers will also be entitled 20% extra if the branch is among the top 100 branches of the Bank, in line with concurrent auditors selected externally.
Though the remuneration has been fixed on monthly basis, the same shall be payable only on quarterly basis on submission of reports as above, by the Zonal
Office concerned on being satisfied as regards adequacy and coverage of all the points mentioned in the check-list. TDS will be deducted in the eligible cases as per rules.
Rating of Concurrent Auditor’s.
|2||Submission of Report (timeliness) by mail||20|
|3||Reporting format and coverage||20|
|4||Quality of report||20|
|6||Stock Audit/Stock verification/end use/asset creation||20|
|7||Comments on documentation, charge creation & reporting||20|
|8||Revenue leakage & recovery (eligible above Rs.50000/ only)||10|
|9||KYC/Cash/Security items/SBI balance/Flabby assets||20|
|11||ZTL and FSI of the branch||20|
|12||Improvement if rating percentage||20|
|13||Comments on FEX business wherever applicable||10|
|14||Liaison and relation with the branch / ZO||10|
|15||Submission of Special Report/fraud/flagging of alerts etc.||10|