MEMORANDUM TO ICAI FOR PROFESSIONAL DEVELOPMENT
Given to ICAI last Year
27 POINTS DRAFT MEMORANDUM TO ICAI ON CUT THROAT BIDDING & PROFESSIONAL DEVELOPMENt
FACTS-
1) A CA Quoted Rs. 174 / Gram Panchayat For Panchayat Audit For Hoogly & Another CA Quoted Rs 224 For Coach Bihar, WB.
2) Another CA Quoted 23% Of Audit Fees In C.Y. To Last Year Fees To Secure Work Of HUDCO.
MEASURES EXPECTED FROM ICAI
1) Audit Of Govt. Spending- If We Could Impress Upon Authorities, The Benefits Of
(A) Audit Of Each Rupee Of Govt. And
(B) Maintenance Of A/C In Double Entry System, We Will Be Getting A Large Volume Of Work And Cut Throat Bidding Will Be Automatically Curbed.
2) Employment In Railway And Other Government Sectors – There Is A Vast Scope Of Employment Of CA In Railway And Other Government Sector.
3) Establish Empanelment System - We Request To Establish System Of Empanelment By RBI By Widening Its Scope I.E. For All Type Of Bank Audit, Whether Concurrent, Statuary, Revenue. A Copy Of Report Should Also Be Submitted Directly To RBI. Everyone Knows Benefit Of Appointment By Independent Body. Now, Everyone Know, How Firms Are Appointed By Adopting Unethical Means. Previously, System of Empanelment by RBI was there In Bank Audit. Why Such System Was Scrapped? If Any Deficiency In System Was There, Than Such System Should Have Been Refined Instead Of Scrapping.
If RBI Is Not Ready To Take The Responsibility Of Appointment Than ICAI Should Establish A “Independent Cell Of Its Staffs"' For Appointment.
4) Change Tendering System- We CAs Will Not Gain With Such Tender System. Even Panwala, Autowala, Rickshaw Wala, All Fixes Minimum Price In A Remote Village. Change In System Is Also Needed Apart From Awareness Among CAs. I Will Request To Impress Upon Ministry And Authorities To Have A Base Quotation Price Keeping In View Of Work Load. ”Base Quotation Price” Is The Price Below Which No One Can Quote.
5) Professional Misconduct- Securing Or Quoting Fees Below Highest Of Last 3 Years Fees Should Be Part Of Professional Misconduct. However, In Case Of 1st Year Of Audit, Basis Should Be Total Cost + Reasonable Profit.
6) City wise/ State wise Task Force To Monitor- We Request ICAI Head Office To Form A “Big Task Force” Consisting Of Staffs Of ICAI To Monitor On Issue of Tendering & Cut Throat Bidding.
7) Create Awareness To Create Social Pressure On Cut Throat Bidders - We Request To Email To Each Members The Regulation For Maintenance Of Cost Sheet & Consequences For Its Violations.
8) Re-Negotiate With Ministry, CAG, RBI And Other Authorities- Taking Into Account The Skill And Time Required for performing Work & Inflation, We Request ICAI To Re-Negotiate Fees With Authorities.
9) Suo Moto Action - We Request ICAI Head Office To Direct Regional Councils, Branches, Study Circles, Chapters, Other Bidders At Tenders To Complain To ICAI, Head Office And Also Request ICAI, Head Office To Take Suo Moto Action Against Cut Throat Bidders.
10) Senior Citizen Benefits - The Following Benefits Can Be Provided-
a. Exemption From CPE Hours
b. Exemption From Fees Of Membership
c. Exemption From Fees Of COP
11) Establish A System Of Empanelment For Companies Also - A System Of Empanelment For Appointment Of Auditor Of Companies, Whether Private Ltd Or Public Ltd, Should Also Be Established. Appointment Of Auditor By An Independent Body Will Further Leads To Independence Of Auditor.
12) Establish A System Of Empanelment For All Type Of Audit- A System Of Empanelment For Appointment Of All Type Of Audit Whether Tax, Bank, Society, Company, School Should Also Be Established. Like Independent Examination Department, ICAI Should Establish An "Independent Empanelment Department" To Take Care Of Empanelment. All Audit Work Should Be Allotted By Such Department. Appointment Of Auditor By An "Independent Body" Will Further Leads To Independence Of Auditor.
13) Effective Website – ICAI Can Make A Website Like MCA So That Members & Students Need Not Have To Visit ICAI For Taking Admission, Depositing Different Forms, Address Change, E-Voting etc. Even A Complaint Can Be Raised And Its Status Can Be Tracked In Such Website. This Should Also Contain Different Judicial Pronouncements Of Relevant Case Laws.
14) ICAI TV Channel – ICAI Can Make A TV Channel Of Its Own To Help Students And Members To Learn Free.Coaching classes can be provided free to students as well as members. Discussion on relevant topics can be telecasted & ca fraternity will get benefit.
15) Free E-Learning For Members & Students – We Should Provide Free E-Learning For Members & Making It A Part Of Structured CP Program, So That Total Cost Of Membership To Each Member Can Be Decreased. E- Learning Facility Will Enable a Member to Login to His Account in the ICAI’s Website & Listen the Lectures of Best Faculty on Topic of His Choice. If Such Program Is Made Part of Structural Program Then Members Will Not Have To Pay Fees As High As Rs. 1500 for a Day to Attend a Seminar.
We Should Also Provide Free E-Learning For Students For Every Subject Of CPT, IPCC AND CA FINAL Of Best Faculty, So That Student Do Not Feel Any Need To Go To Coaching Classes And Total Cost To Study CA Course Can Be Decreased.
16) Infrastructure Development – We Should Utilise Funds For The Development Of Infrastructure For Members As Well As Students Such As Branch Buildings, Conference Rooms, Libraries, Study Rooms, Hostels To Provide Better Amenities To Members And Students As Well. Again Such an Investment Yields One of The Highest Rate Of Return.
17) Reduction In Fees Of Post Qualification Courses – In View Of The Surplus Of More Than Rs. 600 Crores With ICAI & The Fact That ICAI Is A Non Profit Seeking Organisation, Fees of All Post Qualification Courses Should Be Slashed Down By 50%. It Will Also Increase The Number Of CA Joining The Courses.
18) Increase In Fees For Members & Students - In View Of The Surplus Of More Than Rs. 600 Crores With ICAI & The Fact That ICAI Is A Non Profit Seeking Organisation, Is The Increase In Fees Of Membership & COP (Raised From 1700/- To 3400/- And Again To 4200/-) Is Justified? Also I Don’t Think That The Increase In GMCS Fees For Students Is Justified.
19) DVDs/Micro SD Cards Of Lectures To Members & Students - ICAI Should Provide Free DVDs/ Micro Sd Cards Of Lectures Of All Subjects To Members & Students By Best Faculty So That They Can Learn At Their Convenience. Again, As Number Of Total Students Is 11 Lakhs, Cost per SD Cards of Lectures Will Be As Low As Rs. 500.
20) Quality Of Study Material – Why Students Are Purchasing Books Of Different Authors? We Should Hire Best Faculty To Update And Review Our Study Material And Make It So Much Improved That Students Do Not Feel Any Need To Purchase Books Of Any Other Author.
21) Allotment Of Concurrent Audit
A) Principal Of Allotment – Many Firms Have Been Allotted 30-40 Concurrent Audit At A Time By Unfair Means Also. However, Other Firms Are Struggling For Even A Single. Principal Of “One Member One Concurrent Audit” Should Be Followed In Allotment Of Concurrent Audit.
B) Empanelment For Allotment – RBI Should Be Requested To Allot Concurrent Audit
22) System Of Allotment Of Bank Branch Audit- Till Last Year RBI Was Allotting The Bank Branch Audit. However, Now The Head Office Of The Banks Are Allotting Bank Audit. When An Independent Body Like RBI Was Allotting The Concurrent Audit, Why Such System Has Been Dispensed With? I Think Such System Should Be Re-Established.
23) Bank Branch Audit Limit- Draft Additional Action Plan Needed
Media’s Support-
Ø Possibility Of Support From Media Should Be Examined.
Ø Possibility Of Discussion On All Media Channels On Topic “How Can Increasing The Limit Of Bank Branch Audit Affect The Health Of The Bank And How It Can Lead To Another Bank Scam” Should Be Examined.
Ø Possibility Of Discussion On Media Channels On Topic “Recent Cobra Post And Increasing Bank Branch Audit Limit” Should Be Examined.
Ø Possibility Of Press Conference On Major Cities On Above Topics Should Be Examined.
24) Improving The Quality Of Study- Stress Should Be Given In Improving Communication Skills, Public Speaking, Practical Oriented Questions And Paper On Finance To Enable Our Students To Compete With MBA’s.
25) Higher % In CPT & Direct Admission- It Will Take 40 More Years To Clear Present Strength Of CA Student. Passing Marks Required In CPT As Well As In Direct Entry Should Be Increased To 60%.
26) Number Of Attempt In IPCC- The No Of Attempt In IPCC Should Be Reduced To 3. Existing Re-Registration Provision After 5 Attempts Should Be Scraped And There Should Not Be Any Re- Registration Provision.
27) Limited Number Of Attempt In FINAL- The No Of Attempt In FINAL Should Be Introduced And It Should Be 5.
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