Guys

I have discussed the matter with Bank Offficial and according to them every thing has been decided and awaiting for the approval from RBI is pending. Once approve, mail will be sent from the HO to CA's from whom they received the consent. It will take further 3-4 days to get the approval from RBI.

If the Bank has taken consent once from a particular auditor, do they take consent every year ?

If you check the guidelines for appointment of SBA, at para (2)(vi) it says :

After the selection of branch auditors, PSBs will be required to recommend the names of both continuing and selected branch auditors to RBI for seeking its prior approval before their actual appointment, as per statutory requirement.

Further, general guidelines says that :

In order to protect the independence of the auditors/audit firms, banks will have to make the appointments of branch auditors for a continuous period of four years subject to the firms satisfying the eligibility norms each year. Banks cannot remove the audit firms during the above period without the prior approval of the Reserve Bank of India.

Many continuing auditors have not been approached by the banks.

Dear Members, We hope all the banks have finalized the lists and forwarded to RBI for approval. Any news whether RBI has given approval? In how many days is the allottment process scheduled to begin?

refer ca sansar for latest news on allotment.

as regards communication to current auditors. we are on indian bank panel for last 3 years. only at the time of first appointment bank has taken our concent. for last two years we are directly informed about allotment of branches. no other communication is made with continuing auditors.

But other banks are taking consent even from the continuing SBA's.

State Bank Associate SBH has taken consents from continuing auditors also as was told by one of my friend who is a continuing auditors, which is correctly in line with the RBI guidelines.

If u go by the wordings of the guidelines, it seems consent from continuing auditors is not required. I hv given abstract of the guidelines earlier.

Dear members so far no calls/mails received from any bank. Are the allotment process over ? 

Many of the banks have taken consent from Existing firms as well as new incoming

audit firms before finalising and submitting list to RBI. Presently Banks are awaiting

approval list from RBI for allotment of branches.

 

I have gone thru the guidelines and I am of the opinion that during the tenure of 3 / 4 years (as applicable to SCA / SBA), Banks cannot remove the continuing auditors unless any disciplinary proceedings are pending or in case of any adverse remarks against SCA / SBA. Further, the guidelines uses the words 'continuing auditors' and 'new auditors'. From the above, one can conclude that consent is not required from the continuing auditors.

It is distressing to note that  few firms or members  despite having not completed  their full term ( ie continuing audtors )   were not  considered for appointment  for 2014- 15 

What is followed is that  continuing auditor's  automatic appoinment for  the next term is subject to fulfilling the eligibility criteria   ( not restricted to disciplinary proceedings alone ,  for instance indebtedness,  holding other office of profit etc  ) 

In the case of continuing auditors  Banks take confirmation  that they continue to be  eligible for appoinment for the next term  which is different from  consent at the time of first appointment 

Firms / Members  being continuing Auditors  could have made an informal enquiry well inavance  to avoid the harships   reported by few .  

The format of letter and the detailed procedure could vary from  Bank to Bank , but in a nutshell they  must comply  with the guidlines . 

A provisional list of  appointees is submitted to RBI by all the Banks .  This is for the purpose of ensuring complance with the guidlines  by RBI  (  For  instance  Auditors giving consent to  more than one Bank  etc  )   . Omissions  reported  if captured at RBI level  and rectified  by Bank then  there is hope  for the distressed 

Strictly speaking we Individual Members / Firms  do not have a right to make any representation  before   such authorities  and a plea that the auditors independence was tainted may not  necessarily   redress   our  griveance 

 

All the best      

 

What is the latest position of SBA of SBI- at TN?  Have the emails been recd. from LHO Chennai?

So we should hope that banks will allott the branches to the audit firms in the upcoming week.

Answer to the million Dollar Question  -  Fate of the SBAs  that was hanging in the Balance  

Next week by this Day  Branch allottments would be known  and most of us may not find time to spare any thing in this forum . 

This year    there was  more  active  participation  in this forum    though  some of us    were silent / passive  but keen observers 

 We are  all greatfull to each other  for our contributions in this forum, to name a few  ---  

1. C.A  Sathiaanarayanan.T

2. C.A  N.M Poptani

3. C.A  Saurabh  Kasturiwala  

4. C.A  Sham Sunder Gupta  ( S.S.G )

5. C.A    Atrinandan  Angle 

6 C.A   Guru Moorthy 

7. C.A  Ravi Sekar Reddy

8. C.A  B . Prabahkaran 

9. C.A  B.R. Nand Kishore

10 C.A . Ashish Natverlal  Desai

11. C.A   K. Palanivel   

12. Member from  Kerala  who  used the name  P.M.B

13. C.A . Narendra 

14. C.A .Titu Parsar 

15. C.A . Harsh Raiyani

16. C.A  Shanmugham 

17. Ms  Vijayalakshmi     (  Presumably  a  Member  from T.N )  

18.  C.A  Sarika Agarwal  

&  last with an appology for any omissions in this list  My self   Hareesh Kumar  ( HARI ) 

We definetly share  the  misery  of those who were  unlucky  to get  any  appointment this time   and wish them good luck  for the  next time 

To gether we can do a lot  ,  can reinforce each other    -  Self less pursuits  for common good are  also enchanting  though at times it results in emotional setbacks .   

What ever it is    let us carry it forward    ------    

 

Wishing  the  very best  for    all    

Hari     (  HAREESH KUMAR )