From 01.01.2016 to 15.02.2016
OFFICE OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA 9, DEEN
DAYAL UPADHYAYA MARG, NEW DELHI-110124.
Empanelment of Chartered Accountant firms/LLPs for the year
2016-2017
Online Applications are invited from the Chartered
Accountant firms/LLPs who desire to be empanelled with the office of the
Comptroller and Auditor General of India for appointment as auditors of
Government Companies/Corporations for the year 2016-2017. The online
application format will be available on our website: www.saiindia.gov.in from
1st January 2016 to 15th February 2016, the firms/LLPs can apply/update the
data showing the status of their firms as on 1st January 2016. After
filling/updating the data, they are required to generate online acknowledgement
letter for the year. They are also required to submit hard copies of the
relevant documents in support of their online application along with a print
out of the acknowledgement letter generated online. The application which does
not have an online acknowledgement letter would not be entertained as a valid
application.
Sd/-
Sr. Administrative Officer/CA-V
The comptroller and auditor general of
India office have recently invited
applications from the Chartered accountants Firms/ LLP for the year 2015-16. The online application format shall be available from 1st
January 2016 to 15th February 2016; the firms/LLPs can apply/update the data
showing the status of their firms as on 1st January 2016.The empanelled firms
may get the audits for the year 31st March 2017. After filling/updating the
data, It is required to generate an online acknowledgement letter for the year, followed by
submitting the hard copies of the relevant documents in support along with a print out
of the acknowledgement letter generated online. It is not necessary that all
empanelled firms are allotted PSU audits as the allotments are provided on the basis of
ranking/points i.e., merit of the firms.
RANKING POINTS
Appointments are generally made based on the ranking
points of the firm. The top most ranking firms get the audit based on the
geographical presence preferably from local limits. There is a set pattern and
ranking points can be seen at your dedicated page at the site. The said
information is followed by Empanelment Status, Audit Allotment Status, previous
allotments and eligibility for major audit if eligible. There is a transparent
mechanism in work and everything is displayed on site.
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Experience
(in Yrs)
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:
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[0.5pt
for every year- Maximum 15 pts]
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:
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||
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Full
time FCA Partners
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:
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[5pt
each for first 5 partners and 2.5pt each for rest of the partners]
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:
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||
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FCA
Partners above 25 yrs
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:
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[5pt
each partner]
|
:
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||
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Below
25 yrs and above 20 yrs
|
:
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[4pt
each partner]
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:
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||
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Below
20 yrs and above 15 yrs
|
:
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[3pt
each partner]
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:
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||
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Below
15 yrs and above 10 yrs
|
:
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[2pt
each partner]
|
:
|
||
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Below
10 yrs and above 5 yrs
|
:
|
[1pt
each partner]
|
:
|
||
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Full
time ACA Partners
|
:
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[3pt
each for first 5 partners (including FCA partners) and 1.5pt each for rest of
the partners]
|
:
|
||
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ACA
Partners above 25 yrs
|
:
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[5pt
each partner]
|
:
|
||
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Below
25 yrs and above 20 yrs
|
:
|
[4pt
each partner]
|
:
|
||
|
Below
20 yrs and above 15 yrs
|
:
|
[3pt
each partner]
|
:
|
||
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Below
15 yrs and above 10 yrs
|
:
|
[2pt
each partner]
|
:
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||
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Below
10 yrs and above 5 yrs
|
:
|
[1pt
each partner]
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:
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||
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Full
Time CA Employees
|
:
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[1pt
for each CA Employee (Maximum 20 points)]
|
:
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||
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CISA/ISA
Qualified Partners
|
:
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[2 pt
for each partner – maximum 6 pts]
|
:
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CISA/ISA
Qualified Employees
|
:
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[1pt
each Employee – maximum 3 pts]
|
:
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||
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Total
|
:
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||||
POLICY OF EMPANELMENT OF CA FIRMS AND SELECTION OF
AUDITORS OF PSUS
Chartered Accountant firms in India with at least one full time [1] FCA (Partner/Sole Proprietor) can apply for empanelment with this office for allotment of audit of Public Sector Undertakings. The criteria for empanelment and selection of statutory auditors have been arrived at after due consultation with the Institute of Chartered Accountants of India.
Selection of CA firms for appointment as statutory
auditors of psus whose audit fees are up to rs 1.50 lakh
The selection is made by correlating the point score
earned by each firm of Chartered Accountants towards empanelment with the size
of the audit fee. The point score[2] is based upon the experience of the firm,
number of partners and their association [3] with the firm, number of Chartered
Accountant employees, as detailed below:
|
Experience
of the firm
|
0.5 point for every calendar year -Maximum 15.
(Counted
from the date of constitution of the firm with one full time FCA or date of
joining of the firm by the existing partner having the longest association
with the firm whichever is later.)
|
|
Full
Time FCA Partners
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5
points each for first 5 partners and 2.5 points each from 6th partner onwards.
|
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Full
Time ACA Partners
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3
points each for first 5 partners (including FCA partners) and 1.5 points each
from 6th partner onwards.
|
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Points
for long association with the same firm
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5
points for each partner above 25 years.
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4
points for each partner above 20 years.
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|
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3
points for each partner above 15 years.
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|
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2
points for each partner above 10 years.
|
|
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1
point for each partner below 10 Years but above 5 Years.
|
|
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Full
Time CA Employees
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1
point each for first 20 C.A Employees-Maximum 20 points
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CISA/ISA
Qualified Partners
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2
points each for three partners. -maximum 6 points
|
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CISA/ISA
Qualified Employees
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1
point each – Maximum 3 points for 3 employees.
|
Selection of CA firms for appointment
as statutory auditors of psus where audit fee is above rs 1.50 lakh (major
audits)
(a) Criteria for short-listing eligible firms of CAs for
allotment of Major Audits are as under:
(i) The firm should have at least 6 CAs (out of which 5
should be full time partners and one could be a full time paid CA employee),
which is indicative of capacity to handle big audits.
(ii) At least one partner should have an association of 10
years or more with the firm and at least 3 partners of the firm should have an
association of 5 years or more with the firm and the remaining two should have
an association of one year or more with the firm, to demonstrate stability over
time.
(iii) The firm itself should have been in existence for 10
years or more, to prove that it is a well established firm.
(b) Allotment of major audits is based not only on the
size of the firm considering the number of partners, and their association with
the firm, number of Chartered Accountant employees, and the Zone in which the
firms’ head office is located but also on the basis of
factors such as sectoral experience, service tax paid by the firm on assurance
services, capability of handling big audits, past performance, eligibility of
the firm to conduct a particular audit, location of the firm’s branch offices
etc.
[1] Full time
partner does not include
A person who is
(a) a partner in other firms
(b) Employed full time/part time elsewhere, practicing in
their own name or engaged in practice otherwise or engaged in other activity
which would be deemed to be in practice under Section 2(2) of the Chartered
Accountants Act, 1949.
(c) i) Partners whose total compensation@ from the firm is
below the following limit:
Head office of the firms located in Delhi, Mumbai,
Chennai, Kolkata, Bangalore and Hyderabad:
ACA partner Rs. 1.80 lakh in a year (Rs. 15000/- per
month)
FCA partner Rs. 3.00 lakh in a year (Rs. 25000/- per
month)
Head office of the firms located other Places:
ACA partner Rs. 1.20 lakh in a year (Rs. 10000/- per
month)
FCA partner Rs. 1.80 lakh in a year (Rs. 15000/- per
month)
(c) ii) A partner whose total
compensation@ from the firm
is less than:
Firms having more than 14 partners 1%
Firms having 10 to 14 partners 3%
Firms having 5 to 9 partners 5%
Firms having less than 5 partners 8%
@Total compensation = Sum total of share of profit,
remuneration and interest on capital.
[2] All members (sole proprietors/partners/ CA employees)
will get points if they were exclusively associated with the firm throughout
the calendar year immediately preceding the year of empanelment.
[3] In case of merger, the partners of the merging firms
will be assigned points after one year of merger and points for partner’s
association to be given after five years from the date of merger.
CONDITIONS FOR THE AUDITORS
1. The Auditors may please intimate their acceptance as
auditors of the Company within 3 weeks of receipt of this appointment letter
(i) to the Company (ii) to this Office (iii) to the concerned MsAB/PAsG/AsG
entrusted with the Supplementary Audit of the Company. If, for any
reason the Auditors are not in a position to accept the appointment, they may
intimate all the above-mentioned offices immediately along with the reasons for
their decision.
2. The appointment / re-appointment of auditors is subject
to their performance in the previous years’ audit being adjudged as
satisfactory by the DG/PAG/AG /MAB concerned.
3. The appointment/re-appointment of auditors is subject
to the Auditors making the following declarations/undertakings:
(i) That the firm/LLP is not disqualified under section
141 of the Companies Act, 2013
(ii) That no unreasonable TA/DA, out of pocket expenses
will be claimed from the company. In cases where audits are allotted to the
Branch office of the CA Firm no TA/DA should be claimed by the CA firm from the
company for the audit of the Company/Units located at the same station of the
branch.
(iii) That during the year of audit, and for one year
after (to be counted from the date of conclusion of the relevant Annual General
Meeting of the Company) the Firm/LLP ceases to be Auditor, no assignment for
internal audit or consultancy or other services i.e. accounting and book
keeping services, design and implementation of any financial information
system, actuarial services, investment advisory services, investment banking
services, rendering of outsourced financial services, management services etc.
to the company or its holding company or partly owned subsidiaries of the
Company (irrespective of the shareholding) or joint ventures of the Company
whether under production sharing contract or otherwise will be accepted
directly or indirectly as per explanation given under section 144 of the
Companies Act, 2013 by the firm/LLP. Non-audit assignments that involve
performing management functions or making management decisions and audit of
annual accounts of subsidiary companies (irrespective of the
shareholding)/Joint Ventures/Associates are also prohibited during the year of
audit and for one year after the firm/LLP ceases to be auditor. This condition
would not apply to assignments for the tax audit under Income Tax Act, VAT
audit required under various State Legislations, review of Quarterly/half
yearly accounts as per SEBI guidelines and other statutory certificates related
to the audit assignment.
(iv) That no partner/chartered accountant employee of the
firm of auditors/LLPs has been held guilty of professional misconduct by the
Institute of Chartered Accountants of India during last year (in case any
partner of the firm/LLP has been held guilty of professional misconduct by the
Institute of Chartered Accountant of India, please furnish details thereof).
(v) The audit would not be done by a person (i) who is
neither a partner nor an employee of the CA firm/LLP to which the audit has
been allotted; (ii) who was earlier associated with the audit of the said PSU
as a partner/employee of the retiring auditor.
(vi) No partner of the Chartered Accountant firm/LLP would
hold post of Director (except in the case of financial companies) or undertake
audit or any other job/assignment of any Private organization/ Company which is
in the same line of business or industry as that of the PSU.
3(a) The auditors may start the audit of the Company
immediately on receipt of the accounts of the Company. However, they should
certify the accounts for the year only after the audited accounts for the
previous year has been laid before the AGM for their consideration. In case
audited accounts of the previous years has been considered but finally not
adopted by the shareholders, the auditor can certify the accounts of the
succeeding year indicating the fact of the non-adoption of the previous years
accounts in their report.
3(b) The time schedule for conducting the audit may be
drawn up with scheduling of audit i.e indicating the period of audit of
different departments/ units of the PSU and also the name of personnel &
their qualification who will be deployed for audit of each unit. A copy of the
time schedule so fixed may be sent to the concerned MAB/ AG so that they may
also draw their time schedule for supplementary audit.
3(c) The Auditor must complete the audit of the
units/branches allotted to them within the time schedule stipulated by the
management so that the statutory time schedule for placing the accounts in the
AGM could be adhered to.
4. Record of audit work done in the form of working papers
should be retained with sufficient information so as to support the auditors’
significant conclusions and judgments.
5. The Auditors shall have to comply with the directions
issued by this office under 143(5) of the Companies Act, 2013. The remuneration
is inclusive of the fee on account of the additional work involved in this
regard. Directions under section 143(5) is available at this office’s official
website i.e. www.saiindia.gov.in (Chartered Accountants Corner)
6. Statutory auditors of the companies who have adopted
SAP should deploy at least one partner/employee having ISA/CISA qualification
to conduct the audit.
7. The Company/Auditors will have to comply with the other
provisions of the Companies Act, 2013 as may be required, which are not
specifically covered above.
GENERAL INSTRUCTIONS TO FILL
APPLICATION FORM
♣
Chartered Accountant firms (firm) and Limited Liability Partnership firm (LLP)
in the country with at least one full
time FCA (Partner/Sole
Proprietor) as on 1st January
2015 can apply for empanelment with the office of the CAG of India for
allotment of audit of Public Sector Undertakings/Statutory Corporations for the
year 2015-2016.
♣
The firms who intend to be empanelled with this office need to submit their
application online from 1st January
to 15th February 2015
on the website www.saiindia.gov.in. It is advised to submit the application
well in advance to avoid last minute rush.
♣
The information to be given in the application should be the position as on
1st January 2015. Firms
that are already empanelled with the CAG’s office need only to modify the
information that is already available in the application format for changes if
any, reflecting the status of such firms as on 1st January 2015.
♣ Firms
that are seeking empanelment for the first time should provide information as
on 1st January 2015.
♣ The
information filed online in the application can be edited/modified any number
of times till last date of submission.
♣ Please
fill up e-mail ids and mobile numbers correctly as userid/password will be communicated
through these modes.
♣ All
applicant firms will be given unique online acknowledgement number for the year
2015-16 and only firms that
have generated the online acknowledgement number for the year 2015-16 will be
considered for empanelment.
♣ The online data
submitted by the CA firms should match with the updated data of the firm
available with the Institute of Chartered Accountants of India showing the
position as on 1st January
2015. It may however be noted that any changes in data occurring after the
cut-off date of 15th February
2015 that lead to reduction in the rank of the applicant firm shall be taken
into account.
♣ The firms who have
submitted the online application form are required to furnish the following
documents, which should reach this office by 15th March 2015.
(i) Online acknowledgement letter for the year 2015-16
generated at the time of filing online application.
(ii) Statement I: Undertaking signed by the sole
proprietors/partners of the firm/LLP as per format.
(iii) Statement II: Signature of CA employees of the
firm/LLP.
(iv) Copy of the Income Tax return of the firm along with
computation for the assessment year 2014-15 including distribution of income to
partners.
(v) Income tax return for the assessment year 2014-15 of those
CA employees who have joined as partners in the firm after 1st April 2013.
(vi) Copy of the annual accounts of the firm for the
financial year 2013-14 along with schedules
indicating the distribution of income among
the partners.
(vii) Copy of the Service tax return filed by the firm for
the year 2013-2014. In case numbers of returns are more than two, summary sheet may also be attached.
(viii) In case of CISA qualified members, copy of the final CISA certificate granted by the “Information Systems
Audit and Control Association” after successfully meeting all requirements.
(ix) Duly filled up check list of the documents as per
format. (To be placed on the top).
(x) Self addressed acknowledgement form for receipt of
documents as per format.
♣ The above documents
should be addressed to:
Director General (Commercial)-I,
Office of the Comptroller &
Auditor General of India,
10, Bahadur Shah Zafar Marg,
New Delhi-110124.
♣ On the top of the
envelope containing the documents, the following should be stated:
“Application for empanelment as
Auditors of Public Sector Undertakings”
♣
The documents should be properly tagged and page numbered. This office owns no
responsibility for loss of any documents, which are not properly tagged or sent
subsequently in piecemeal.
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