Sun Jun 18 06:53:38 2017 You will get all informations about the fabulous Tarot de Marseille, and all the cards in it. Today, tomorrow, you can see through your. Neeyente sarvavum neeyenikullaven Neeyente sarvavum ellatilum Nin jeevan en perkayi thannathinal Neeyente sarvavum ellatilum. Thenilum maduramam, Thenilum maduramam. BTemplates,Responsive,Best Blogger Templates,Wordpress Themes,Premium Blogger Templates,4u,New Blogger Templates,Blogspot Themes,Latest,Blogger Themes,2011,2012,2013. Allotment Process of Statutory Bank Branch Audit needs Change- Sign Online Petition. Respected Members,For improvement in “Bank Audit allotment system, We a group of CAs called “SAVE CERTIFICATION RIGHT” has prepared a memorandum & file a petition at www. We appeal all CAs to sign it by clicking on the link given below: -Memorandum for Suggesting Changes in the Process of Allotment Of Statutory Bank Branch Audits to Chartered Accountants. We are Chartered Accountants located in different parts of India. Dangerous Accounting Software Surat JalanWe have noted with concern the various issues that have arisen over the past few years in the matter of appointment of auditors of Bank Branches. This has not only adversely affected the NPAs of various bank branches (which in turn affects the economic health of the banking industry which forms the backbone of the Indian economy) but also resulted in several small and medium sized firms of Chartered Accountants losing an important stream of revenue. It is in this background that we humbly request you to kindly go through the below memorandum and to take appropriate action at the earliest. A few representatives of the signatories would be privileged to attend before you personally and explain the matter in detail. Present System of Allotment of Bank Branch Audits: A. Every year, ICAI forwards the Bank Branch Auditors’ Panel to Reserve Bank of India (RBI). ![]() The said panel is classified into following three lists by RBI: -i. List of auditors stationed at 3. List of continuing auditors who have yet to complete their cycle of 4 years of allotment of bank branch statutory audit – this list is forwarded by RBI to respective banks. List containing balance names is forwarded by RBI to all the Public Sector Banks to select their branch statutory auditors, as per their requirement. B. Out of the 3rd list, Banks select few CA firms as per their discretion to replace the firms which have completed their cycle of 4 years. The concerned bank then seeks the selected auditors’ confirmation either by an Email and/or phone call . On getting their confirmation, an appointment letter is issued to them. ONESOURCE tax software and solutions synchronize every aspect of your work and linking each piece of the international, country, state and local tax puzzle. Present System of Allotment of Bank Branch Audits A. Every year, ICAI forwards the Bank Branch Auditors’ Panel to Reserve Bank of India (RBI). The said panel. A newspaper is a serial publication containing news about current events, other informative articles about politics, sports, arts, and so on, and advertising. Advance your online legal research with Westlaw, the most preferred service year after year. Start your Free Trial today. Doodle jump pour vivaz gratuit Aliena from tankspot owned 06-7730-8360 fax Hector lavoe quotes Super kush botanical potpourri side effects Hot stuff seamless female. C. Auditors in 2nd list are sent appointment letters automatically in the normal course. Earlier System of Allotment of Bank Branch Audit, upto 2. Earlier also, ICAI forwarded the Bank Branch Auditors’ Panel to RBI which classified the list in 3 parts as mentioned above with the only and major difference that the 3rd list of new auditors was not common for all banks as is being done now. Selection of new auditors for each bank was done separately by RBI in a very transparent and undisputed manner which was never questioned by any auditor in the past 4 decades. There was no clash of same names of new audit firms in more than one bank, as is happening now. Today, because of the deficient system, some CA Firms get multiple offers for appointment from 2- 3 banks. Separate list of new auditors was sent by RBI to each bank and the banks had no say in the appointment of branch auditors. Company Name : Nipro India Corporation Pvt.Ltd.(niproindia.com) Company Location : Pune Designation : Micro Biologist Website : http://www.niproindia.com. Jadwal berikut ini diurutkan sesuai dengan tanggal penyelenggaraan. Tanggal yang dimunculkan di bawah ini merupakan tanggal hari pertama penyelenggaraan training. ![]() As a result, independence of the auditor was well and truly safeguarded by RBI. PROBLEMS IN THE CURRENT SYSTEM OF BANK BRANCH AUDIT ALLOTMENT : 1. The main problem area is the 3rd List, whereby banks are selecting new auditors as per their own discretion because there is neither any automated software for making the selection nor is there any prescribed procedure for the same. And this is creating a very volcanic situation. As the same 3rd list is sent to all the banks, as mentioned earlier, some CA firms get offers from 2- 3 banks whereas there are many CA firms who are not getting offer of appointment from any bank since last 5- 6 years. Also, some CA firms are getting the allotment continuously without any break even after 4 years and on the other hand, some CA firms are getting after a gap of may be 4- 5 years or may be not getting even after 4- 5 years. Category- IV firms are the worst hit by this new system of allotment of bank branch audits. In light of the above, it is respectfully submitted that this system is neither logical nor fair. Ever since the process of allotment of Statutory Bank Branch Audits of Nationalised Banks was shifted by Ministry of Finance, GOI, from RBI to respective banks in 2. Letter No. 1/1. 4/2. BOA dt. 2. 1/1. 1/2. Chartered Accountants regarding the methodology and fairness in allotment of branches to auditors, which has also been affecting the independence of auditors, in some way or the other. As a result of these decisions, the number of bank branches under audit got reduced drastically in the last 3 years, giving further impetus to the – “Setting – Getting” culture in allotment of bank branch audits, which is proving damaging for the banks and Govt. Ever since this increase in cut- off limit for audit of branches has been effected, NPA figures have gone up drastically in the last 3 years. From 2. 3. 2% in 2. NPA ratio has gone upto 3. March, 2. 01. 3 and 4. And this has further increased to 4. June’2. 01. 4. By all standards, this is an alarming increase in NPAs. Now, if we compare this NPA ratio of last 3 years with that of 2. Memorandum becomes crystal clear. NPA was 2. 3. 3% in 2. Comparative figures of NPAs of Public Sector Banks are given below for ready reference : -Year. Amount (in Billion Rs.)Per Cent (%)2. Various frauds have also occurred in some bank branches with advances below Rs. Looking at this increasing trend of NPAs, there is clearly no logic for enhancing the cut–off limit for audit of bank branches to Rs. Govt. 3. In FY 2. In 2. 5 public sector banks, more than 5. UCO Bank leading the list with 7. Central Bank of India with 6. There is a serious question on the extent to which one can rely on the financial statements of UCO Bank whose 2. This “Setting – Getting” culture is not in consonance with the preamble of the new Govt. The recent arrest of the CMD of Syndicate Bank and cancellation of postings of CMDs of 6 Nationalised Banks are self- explanatory and indicators of the mass corruption existing in the banking sector. In such a scenario, the top management of any banks can very easily appoint branch auditors of their choice and suitability with the ulterior motive of covering up misdeeds. It may be noted here that Central Statutory auditors (CSA) do not have access to loan documents and terms and conditions of sanction which are available only at the branches. In small branches, it has been noticed during audit that date of sanction is wrongly fed and repayment schedule is not fed properly in the master data of the borrower at the time of conversion of the branch to CBS due to which the bank’s software is unable to recognise it as an NPA at the appropriate time. Dates can also be altered temporarily by the bank branch officials to show reduced figure of NPA. Details given in computer software are mostly incomplete/incorrect and hence mislead the auditor. Branch auditor always has an edge because he can verify the documents physically. This privilege is not available with the CSA as he is sitting at a distant place without access to physical documents & sanction letter. In many cases, CA firms of North India are allotted audits of bank branches in South/West/East India and vice- versa. This entails wastage of time of auditors and also entails unnecessary traveling costs for the banks. This is neither beneficial to the banks nor to the auditors. There is no area mapping of the location of a branch and the auditor especially in case of medium and big branches. The Setting- Getting formula is in the crux of this problem also. Another important problem relating to bank audits is that auditors do not get sufficient time to conduct the audit in the desired manner due to undue pressure of timeline for audit set by the top management of the bank. Normally, the banks are asking their auditors to complete the audit (including the huge no. In fact, at the top level, there appears to be a race between all the public sector banks to complete their audit process fast and to become the first to publish the Balance Sheet. Their main concern seems to be an expeditious publication of their Balance Sheet and not Quality Audit. On the one hand, banks are allotting upto 3 branches to every auditor and pressurizing them to complete audit of all 3 branches within a week and on the other hand, many CA firms in the 3rd list are not allotted branch audit by any bank. This clearly indicates that the system fails to distribute work equitably and efficiently amongst the pool of Chartered Accountants in the country. A large portion of funds of public welfare schemes are routed through small and rural branches which are under the sole discretion of the branch managers. Almost all such branches have been moved out of the audit purview because their advance portfolio is less than Rs. The moot question is why is this done? Is it just to cut costs? On an average, the audit fees of a rural/small branch having advances below 1. Rs. 5. 0,0. 00/- . Such a small amount can be very easily saved by the bank branches by controlling various expenses through proper control & management. Banks have increased their profits in the last 4- 5 years, by selling insurance and other financial products. Even rural branches are generally having profits of more than 1 crore. In such a scenario, incurring audit expenses of just around Rs. The importance and benefits of external audit in public financial institutions far outweigh the nominal cost of the audits. All the Indian banks survived comfortably even during recession when the entire banking sector of the world faced a financial crisis leading to insolvency of major banks of the World. In such circumstances, it is strange that the Government is of the view that the audits and checks require to be reduced. It is not necessary that frauds/scams are committed in large bank branches only. The only difference is that scams in large branches get highlighted due to the quantum.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
August 2017
Categories |