Revised norms for categorization of audit firms for their empanelment as branch

Revised norms for categorization of audit firms for their empanelment as branch auditors
April, 26th 2011
Revised norms for categorization of audit firms for their empanelment as branch auditors for public sector banks and branch allocation to different categories of audit firms.
Category
No. of CAs exclusively associated with the firm (full-time)
No. of partners exclusively associated with the firm (full time) (Out of 2)
Professional staff
Bank audit experience
Standing of the audit firm
(1)
(2)
(3)
(4)
(5)
(6)
I.
5
3
8
The firm or at least one of the partners should have a minimum of 8 years experience of branch audit of a nationalized bank and/or of a private sector bank with deposits of not less than Rs.500 crore.
8 years
II.
3
2
6
The firm or at least one of the partners should have preferably conducted branch audit of nationalized bank or of a private sector bank with deposits not less than Rs.500 crore for at least 5 years.
6 years (for the firm or at least one partner)
III.
2
1
4
The firm or at least one of the CAs should have preferably conducted branch audit of a nationalized bank or of a private sector bank with deposits not less than Rs.500 crore for at least 3 years.
5 years (for the firm or at least one partner)
IV.
2 2
Even proprietorship concern without bank audit experience may be considered as hitherto. (The proprietary concerns of Chartered Accountants with 1 paid CA, 2 professional staff and not having any statutory branch audit experience of a nationalized bank or of a private sector bank with deposits not less than Rs.500 crore will be treated at par with the partnership firm after deducting their 3 years seniority from the date of their establishment).
2
Not necessary
3 years