Policy for Appointment of Statutory Branch Auditors from 2014-15 onwards

 Policy for Appointment of Statutory Branch Auditors from 2014-15 onwards

I) Eligible Audit Firms The List of eligible Audit firms will be provided by the Reserve Bank of
India. (The Audit firms, whose partner/s are on the Board of the bank will not be appointed as auditors.) 

II) Procedure for selection of Audit Firms for Branch Audit A committee consisting of General Manager (Accounts), Departmental Head and another official of H.O Accounts & Audit Department will shortlist the names of the audit firms for Branch Audit which will be recommended to RBI. While short listing the names of Audit Firms, the following criteria will be considered: a) The office of the Audit Firm to be preferably in or around the branches to be audited so as to keep close liaison & keep the expenditure on TA/DA at minimum level. In case local auditors are not available, auditors from the nearby districts within the State/ adjoining States/ other States will be considered. b) There should be a suitable mix of various categories of auditors / audit firms keeping in view the size of the branches to be audited. 

III) Offer for Appointment i. The offer(s) for appointment to the Audit firm(s) shall be given through various modes of communications including by Speed Post; ii. One week will be given to the Audit Firms to accept the offer of appointment as Statutory Branch Auditors and iii. The name(s) of the Audit Firm(s) (to whom the offer for appointment as Statutory Branch Auditors for a particular period have been given) will be displayed on the Bank’s website. 

IV) Irrevocable consent Irrevocable consent is to be obtained from the Audit Firm in writing for consideration of appointment in our bank for the particular year and for the subsequent continuing years. The consent given by an audit firm will be treated as irrevocable and request, if any, from audit firms for changing the bank, after having given its consent is not to be entertained. 

V) Tenure SBA Firm will have tenure of four years or such period as advised by RBI. 

VI) Number of assignment One Audit firm can take up audit assignment in one Public Sector Bank only. 

VII) Allocation of branches i) No distinction will be made between the continuing auditors and the fresh auditors. ii) Bank will allot branches, to the extent possible, to the audit firms taking consideration of the category of the firm. iii) Local auditors will be preferred for branch audit. Among local auditors preference will be given category wise. In case local auditors are not available, auditors from the nearby districts within the State/adjoining States/other States will be considered for audit. iv) Bank will give assignment to all the auditors approved/considered for appointment. 

VIII) Maximum Number of branches to be audited Not more than three (3) branches (irrespective of the size) will be allotted to each of the branch auditors. 

IX) Relinquish the Internal assignments, if any At the time of appointment of an audit firm as Statutory Branch Auditor of the bank for the current year, all the internal assignments in our bank, if any, will stand withdrawn, in the event of acceptance of the appointment as Statutory Auditor of the Bank.