Empanelment of Chartered Accountants for Concurrent Audit at Jalore Bank

Empanelment of Chartered Accountants for Concurrent Audit at Jalore Nagrik Sahkari Bank Ltd.

Jalore Nagrik Sahkari Bank Ltd. (JNSB) is inviting applications from practicing Chartered Accountant (CA) firms for empanelment as concurrent auditors. Below are the detailed terms and conditions for this assignment.

Eligibility Criteria

Chartered Accountant Status: Applicants must be Chartered Accountants with a minimum standing of two years. Preference will be given to Associate Chartered Accountants (ACA), Fellow Chartered Accountants (FCA), or partnership firms.
Additional Qualifications: Firms with partners holding CISA or DISA qualifications will receive preference. Weightage will also be granted to firms with partners who have banking experience or who are associated with ex-bankers. Firms whose partners have completed the certificate course in Concurrent Audit conducted by the Institute of Chartered Accountants of India will also be considered favorably.

Audit Requirements

Technological Proficiency: Auditing and reporting must be executed via the online Risk-Based Concurrent Audit (RBCA) module, and applicants must demonstrate computer proficiency.
Gradation of Auditors: Auditor gradation will follow the guidelines suggested for branch statutory auditor appointments.
Tenure and Extension: The initial tenure for the concurrent audit will be one year, extendable for another year based on performance evaluation.
Responsibility for Reporting: The audit firm will be accountable for failing to report serious irregularities or discrepancies, which may lead to termination of the assignment. Non-compliance may also be reported to ICAI, RBI, or IBA.
Professional Conduct: Auditors must conduct audits following the guidelines from ICAI, RBI, and the Bank, ensuring professional standards at all times.

Application Conditions

Subcontracting: The audit firm must not subcontract any part of the audit assignment.
Office Infrastructure: Firms must have the necessary office setup and adequate personnel for the effective and timely execution of the assignment.
Secrecy Undertaking: Upon accepting the assignment, the firm must execute an undertaking of fidelity and secrecy on their official letterhead.
Declaration of Credit Facilities: Firms must declare that no existing credit facilities have become non-performing assets as per RBI norms. Incorrect declarations may lead to assignment termination and potential repercussions under ICAI/RBI guidelines.
Statutory Auditor Restriction: Firms or their partners cannot be statutory auditors for JNSB for the years 2020-21 and 2021-22.
Disciplinary Matters: Firms and their partners must have no pending disciplinary issues with ICAI or RBI and should not have incurred disqualification under Section 143 of the Companies Act.
Selection Notification: Only the audit firms provisionally selected will be notified. No individual notifications will be sent to unselected applicants.

Audit Schedule and Responsibilities

Branch Visits: A qualified Chartered Accountant must visit the branch at least twice weekly, and the audit firm is required to conduct audit work for a minimum of 21 working days each month.
Termination Rights: The Bank reserves the right to terminate the assignment with one month’s written notice if the audit quality is unsatisfactory. Auditors must provide one month's notice prior to resignation, with termination effective only after Head Office acceptance.
Short Inspections: Concurrent audits will include short inspections as directed by the administrative office, with reports submitted to the appropriate Zonal Office or Head Office department.
Quarterly Review: Concurrent auditors are required to undertake a limited review of accounts for all designated quarters.
Additional Assignments: Any additional assignments required by the Bank, GOI, or RBI as part of the concurrent audit may be assigned.
Right to Cancel: The Bank maintains the right to cancel the assignment at any time during the concurrent audit period.
Cooling Period: After the assignment, firms may be considered for future audit assignments in different locations after a cooling-off period of two years, at the Bank's discretion.
Daily Audit Coverage: Audits must be conducted daily, encompassing all transactions of working days in the month using the RBCA. Reports should be submitted online monthly.
Extension Counters: The scope of the audit includes all extension counters and branch operations, including ATMs and Forex businesses.
Fees: The monthly fee for concurrent audit starts at Rs. 8,000, subject to the branch's business size. Payments will be made upon submission of the online audit report. A penalty of 10% will be imposed for reports submitted after the 10th of the following month.
Tentative Locations: A preliminary list of centres for concurrent audit is available, with the Bank retaining the flexibility to adjust this list as needed.
Selection Criteria: Selection will be based on requirements and at the sole discretion of the Bank.
Prior Auditors: Current concurrent auditors who have not completed three years of tenure may submit applications.
No Rights Conferred: Submission of an application does not guarantee allotment of concurrent audit assignments by the Bank.

Guidelines for Concurrent Auditors

Do’s for Concurrent Auditors

Conduct a pre-audit study of the branch to gather all relevant information and Ongoing surveillance reports as per the engagement letter.
Develop a comprehensive audit plan that addresses all scope areas while adhering to timelines.
Schedule an introductory meeting with the auditee to gather necessary information and introduce the audit team.
Ensure the audit team includes senior and experienced members as needed.
Foster teamwork and resolution rather than arguments in the presence of auditees.
Discuss findings daily with branch officials to facilitate immediate correction of defects.
Allow auditees to share their perspectives during discussions to promote a cooperative atmosphere.
Address any differing opinions promptly by consulting the team leader.
Report any indications of fraud, negligence, or incompetence to the team leader without delay.
Maintain confidentiality regarding all audit observations and issues.

Don’ts for Concurrent Auditors

Maintain no professional or commercial relationships with borrowers or beneficiaries of the audited branch for at least three years.
Avoid leveraging their position as auditors to solicit business from the Bank.
Refrain from representing clients or customers of the Bank for at least two years post-audit term.
Do not share audit findings or issues with parties outside the Bank.
Maintain a friendly demeanor without being overly reserved or intimidating.
Avoid engaging in heated arguments with auditees.
Seek guidance from assigned officers rather than giving orders directly.
Ensure timely submission of audit reports, avoiding unnecessary delays.

By following these guidelines, JNSB aims to uphold high standards of professionalism and accountability within the concurrent audit process.