BANK AUDIT FEE- A CRUEL JOKE FOR ASTONISHING DEDUCTION FOR SIGNING MOC BY PNB

I am talking about the deductions that you may have forgotten about or ignored in the main stream media during Bank Audit time, I mean the deductions you really may not have ever known about. Here is an example of Fee deduction for signing the Bank Audit report with MOC of Rs. 5.00 Crore that I am talking about:

 

A chartered accountant from Alwar has faced an astonishing deduction of fees on account of signing MOC. Here is a story about the non seriousness towards the cause of Chartered Accountants as Auditors of the Bank.

 

A Chartered accountant firm got the allotments from Punjab National Bank. Truly he worked as an Auditor and identified and filled the NPA by submitting the MOC  to the Bank. He didn’t have any appreciation letter either from the Management or from the Statutory Auditor for marking Rs. 5.00 Crore as NPA in MOC. Last week he got the payment after a deduction on account of reduction of advance figure because of MOC and the Bank is insisting that they will give the fee after giving effect to the MOC as suggested by him.

 

The Chartered Accountant has approached the Bank higher Officials and the official clearly mention that he must not have signed the MOC if he wanted a full fee.

 

I had a talk with the RBI people, it was new to them but they have advised me to send a written representation on the subject.

 

I had a talk with the Inspection Department, Punjab National Bank. He was determined that the fee is payable after deducting the MOC as Suggested by the Auditors. Now he has assured to review the payment. Hopefully the good sense shall prevail upon them.

 

Finally, my favorite quote  is “Not everything that counts can be counted, and not everything that can be counted Counts” (Albert Einstein)

 

CA AMRESH VASHISHT, FCA, LLB,DISA(ICAI)