[aaykarbhavan] Tender Process for Audit:Your latest efforts for profession are catching on fire

Dear Sir,

Somehow

your latest efforts for profession are catching on fire and you are proving to be "Kejriwal" in the CA fraternity. By this mail I wish you to take up the case of Tendering process - We have seen that whenever and wherever professional assignments are being offered through process of " Technical and Financial bid" i.e by way of tendering, most of the eligible firms end up red faced by seeing the result of tenders in which certain errant firms quote rock bottom non feasible fees just to grab the audits. In certain cases on a personal follow up meeting the officials of auditee company also complain about this pathetic practice and show their concerns about the quality of audit being done by these firms. Every body involved in the process knows that the fees quoted is not even sufficient to cover the conveyance expenses to be incurred on audit.

In a recent incident a PSU advertised for an annual assignment with a Maximum cap of Rs. 2 lac whereas the tender had to be awarded in the favour of a firm which quoted a fees of Rs. 40 thousand only. The DGM (F) suggested that ICAI should take up the case with CVC to drop the Financial bid process in the case of selection of Audit firms and shortlisted firms on the basis of Technical bids may only be called to quote within the maximum and minimum limit of fees.

I want you to circulate the matter for the awareness of CA firms and to write to appropriate forums to curb the prevalent malpractice.

Thanks & Regards  

CA Sanjay Sharma

Sharma Kathuria & Co
Chartered Accountants
509. DDA Building Plot No 4
Laxmi Nagar Distric Centre
Laxmi Nagar, Delhi 110092

011- 46514102
09811514102
09311332718


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Posted by: Nitesh More <moreassociate@gmail.com>

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