Transparency required in allotment of PSU and Bank Audit
Dear CA friends,
Arbitrary criteria exist for the allotment of audit of public sector units.
Every department made their own different rules and conditions for
appointment though there is existence of ICAI Multipurpose empanelment
There is something which is hidden and not transparent.
Individual or Proprietor ship concerns are not eligible for PSU Audit only
because of non-fulfilment of experience condition.
A proprietor ship concern never get experience until and unless
allotment of audit to them.
There should be a compulsory training for new members to get experience of
PSU audit and every firm must have compulsion to train a fix no. of new
Bank Audit and PSU Audit both should be combined for the purpose of
allotment therefore those firms appointed for PSU will barred from Bank Audit
and vice versa.
It will not only make system transparent as well as end of rest period or cooling
Another one step also should be taken for large betterment of Audit firms.
At present a single chartered accountant firms are allotted 2 or 3 branches that
is a cause of limited firms are in the umbrella of allotment therefore allotment
should be restricted to 1 or 2 branches.
That will bring more members to the allotment and even members will keep
themselves up to date with the amendments regarding banking sectors.
every department made is why different rules and conditions
I wrote to RBI regarding autonomy but unfortunately their reply was so
irresponsible “Autonomy has been given to the banks and their shareholders
will decide on the appointment of auditors”
It’s really not an abuse of rights in the context of public funds also equivalent an
Whenever the public funds are concern not only transparencies are required also
it has to be shown.
Similarly, the private bank is also dealing with public funds then why these
banks enjoying privileges regarding Statutory Branch Audit. These banks must
be brought in the same bracket as public sector banks.
New tender policy adopted by Bank of Baroda is now has become a burning
issue, only because of the work is slipping from the hands of large firms. There
is no voice till now when all the unfair conditions for the proprietor ship firms
regarding Bank Audit and PSU Audit.
Transparency is going emaciated every moment
FCA Gopal Rathi
Contact : email@example.com