A Very Welcome Step by ICAI — Mechanism to Monitor Tendering by CA Firm

With a view to con­tain the ten­der­ing sys­tem for attest func­tions, the Coun­cil at its spe­cial (338th) meet­ing con­sid­ered the report of the Group con­sti­tut­ed under the con­venor­ship of CA. Tarun Jam­nadas Ghia, Mem­ber, Cen­tral Coun­cil and decid­ed as under:

1.  Ten­der­ing has been pro­hib­it­ed in the exclu­sive areas of prac­tice of char­tered accoun­tants like audit and attes­ta­tion ser­vices. i.e. those areas where the assign­ments can be per­formed only by char­tered accoun­tants. In those areas, where along­with char­tered accoun­tants, the oth­er pro­fes­sion­als can also apply for the ten­der, there is no restric­tion for the char­tered accoun­tants to respond to the ten­ders float­ed by author­i­ties from time to time.

2.  Mem­bers are advised to adhere to the rec­om­mend­ed scale of fees pre­scribed by ICAI in the con­text of var­i­ous pro­fes­sion­al assign­ments. To ensure such adher­ence, a mem­ber respond­ing to a ten­der should be required to fur­nish to ICAI at the des­ig­nat­ed e‑mail address pdc.tender@icai.in with esti­mat­ed hours to be devot­ed by the partner/proprietor, paid CAs, oth­er staff and the fees quot­ed in the ten­der. Such details will be fur­nished by the mem­ber with­in a peri­od of fif­teen days of his respond­ing to the ten­der. If the mem­ber is suc­cess­ful in secur­ing the ten­dered assign­ment, then the mem­ber will also fur­nish the actu­al hours devot­ed by the partner/proprietor, paid CAs and the staff with­in two months of com­ple­tion of the assignment.

3.  Mem­bers are required to main­tain cost sheet in the giv­en for­mat while sub­mit­ting any tender/bid. The for­mat of the same can be viewed at http://220.227.161.86/38366pdc28039.pdf

4.  Mem­bers are required to main­tain the cost sheet com­pul­so­ri­ly and sub­mit a soft copy of the bid sub­mit­ted by them in response to any ten­der with­in 15 days to ICAI. The office can check whether rec­om­mend­ed scale of fees has been fol­lowed or not in those bids, to ensure adher­ence to qual­i­ty standards.

Pro­fes­sion­al Devel­op­ment Committee