Indian Banks’ Association

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ELIGIBILTY CRITERIA FOR EMPANELMENT OF ‘FORENSIC AUDITORS’

1. For borrowal accounts above Rs 50 crores (Fund based + Non Fund based):

Sr. Selection Criteria Requirement

No.

1. a) Overall exposure of the Firm/entity in forensic investigation in completed Minimum :Ten years
number of years including experience of Chartered Accountant/Auditor employed
by firm/entity.
Minimum : Five years
b) Minimum experience of at least one of the Auditors as indicated above
(including the experience as partner / employee of any other Chartered Accountant
firm / entity/ concern)

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Sr. Selection Criteria Requirement
No.

2. Minimum number of Auditors with the investigative entity Minimum :Three

3. The firms/entities should have employed Private Detective Agencies / Ex law Engagement of skilled professionals
enforcement professionals/ Corporate Fraud investigators/ Persons having minimum two of the given categories.
experience in Industrial espionage / legal experts / experts on anti-money
laundering activities, etc.

4. Number of Certified Fraud Examiners or Qualified persons in ForensicScience Three

and Cyber securities with the Firm / Entity having expertise in:

- Book Debt Analysis / credit appraisal

- Verification of stock books / cash books / petty cash / stockledgers /

sub-ledgers

- Documentary Analysis in Foreign Trade

- SWIFT (remittance) trail tracking tools

- Buyer’s credit / Letters of credit / Forward Exchange contracts

- Foreign Trade Finance mechanism

5. The Investigative Tools presently used by the Firm / Entity in it’sForensic Give the list of instruments,
Laboratory (Mention the IT and Non-IT tools) For Example: machineries, and other forensic
investigative tools

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Sr. Selection Criteria Requirement
No.

- Email cracking tools

- Voice Interpreter

- Mobile Call Interpreter

- Big Data Analysing tools

- Retrieval of deleted data etc..

- Lie Detecting Machine

- Interrogating tools / softwares

- Audit Trail Finder

- RTGS / NEFT / Other payment solution methodologies

6. Experience in concurrent audit / Stock Audit in Banks wherever applicable: Minimum : Five years
(Rationale: Since the work assigned would require a considerable coverage of
credit and forex related investigation,experience in these areas provide an edge to
such firms / entities)

7. Number of judgements passed in the Indian court of Laws based on the Forensic Please submit the list of case
Investigation Report submitted by the Firm/Entity as a decision making reference. numbers for verification on-line

8. The Firm/Entity empanelled should undertake that their report will be

termed as “ Forensic Audit Report” and the firm will undertake thatthey
will be ready to appear in the Court as witness when Court /

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Sr. Selection Criteria Requirement
No.

Counsel will challenge their reports.

9. The Firm/Entity empanelled should unambiguously conclude in their report about
various observations made by them during audit to enable the Bank to take various
decisions based on their report, including that of declaring the Fraud by the
customer.

10. Submitting a certificate (initially and on-going basis) from the firm / concern / To be submitted after selection.
entity confirming that

a. No disciplinary proceedings pending or contemplated against them by the

Institute of Chartered Accountants of India / Reserve Bank of India / SEBI.

b. No disciplinary proceedings are pending against the proprietor

/ partners with the Institute of Chartered Accountants of India.

c. Having unblemished track record and should not have been blacklisted by
any PSBs/FIs/Govt Departments. The firm/entity should submit a stamped
affidavit to that effect.

d. There is no criminal case pending against any Court of Law against the
firm/entity and/or its partners.
11. List of Banks / FIs served as concurrent auditors / Statutory auditors in the past Minimum 7 reputed organisations
and serving at present wherever applicable (Please mention the list of banks / FIs inclusive 3 international
and number of years worked with them) companies/MNC for statutory audit.

12. Submission of sample reports pertaining to Forensic Investigation of Minimum three sample reports

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Sr. Selection Criteria Requirement
No.

large value Asset Frauds in banks under a large consortium lending.

13. Preferably the Firm/Entity should be empanelled/ worked with Please submit list of such audits
regulatory bodies like CBI, SEBI, SFIO, EOW of State Police etc. conducted.

14. Geographical Presence Must have all India presence

preferably in major cities.

15. References from Banks where forensic assignment is completed in the Two Banks
past.

2. For borrowal accounts upto Rs 50 crores (Fund based + Non Fund based):

Sr. Selection Criteria Requirement

No
.
1. a) Overall exposure of the Firm /Entity in forensic investigation in completed Minimum: Five years
number of years.

b) Minimum experience of at least one of the Auditors as indicated above

Minimum: Three years
(including the experience as partner / employee ofany other Chartered Accountant
firm / concern / entity)
2. Minimum number of Auditors with the investigative agency Minimum : Three

7
3. The firms / entities should have employed Private Detective Agencies / Ex law
enforcement professionals/ Corporate Fraud investigators/Persons having experience
in Industrial espionage / legal experts / experts on anti-money laundering activities,
etc.

4. Number of Certified Fraud Examiners or Qualified persons in ForensicScience One

and Cyber securities with the Firm/entity having expertise in:

- Book Debt Analysis / credit appraisal

- Verification of stock books / cash books / petty cash / stockledgers /

sub-ledgers
- Documentary Analysis in Foreign Trade

- SWIFT (remittance) trail tracking tools

- Buyer’s credit / Letters of credit / Forward Exchange contracts

- Foreign Trade Finance mechanism

8
Sr. No. Selection Criteria Requirement

5. The Investigative Tools presently used by the Firm /Entity in it’s Forensic Laboratory Give the list of instruments,machineries,
(Mention the IT and Non-IT tools) For Example: and other forensic investigative tools

- Email cracking tools

- Voice Interpreter

- Mobile Call Interpreter

- Big Data Analysing tools

- Retrieval of deleted data etc..

- Lie Detecting Machine

- Interrogating tools / softwares

- Audit Trail Finder

- RTGS / NEFT / Other payment solution methodologies

6. Experience in concurrent audit / Stock Audit in Banks wherever applicable: Minimum : Three years
(Rationale: Since the work assigned would require a considerable coverage of
credit and forex related investigation, experience in these areas provide an edge to
such firms / entities.)

9
Sr. No. Selection Criteria Requirement

7. Number of judgements passed in the Indian court of Laws based on the Forensic Please submit the list of case numbers for
Investigation Report submitted by the Firm/Entity as a decision making reference. verification on-line
8. The Firm/Entity empanelled should undertake that their report will betermed as “
Forensic Audit Report” and the firm/entity will undertake that they will be ready
to appear in the Court as witness when Court /Counsel will challenge their reports.

9. The Firm/Entity empanelled should unambiguously conclude in their report about

various observations made by them during audit to enable the Bank to take various
decisions based on their report, including thatof declaring the Fraud by the customer.
10. Submitting a certificate (initially and on-going basis) from the firm /concern/ To be submitted after selection
Entity confirming that:
a) No disciplinary proceedings pending or contemplated against them by the
Institute of Chartered Accountants of India / Reserve Bank of India / SEBI.

b) No disciplinary proceedings are pending against the proprietor

/ partners with the Institute of Chartered Accountants of India.

c) Having unblemished track record and should not have been blacklisted by
any PSBs/FIs/Govt Departments. The firm / entity should submit a stamped
affidavit to that effect.

d) There is no criminal case pending against any Court of Lawagainst the firm
/entity and/or its partners.
11. List of Banks / FIs served as concurrent auditors / Statutory auditors in thepast and Minimum 5 reputed organisations for
serving at present wherever applicable (Please mention the list of banks / FIs and concurrent audit.
number of years worked with them)

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Sr. No. Selection Criteria Requirement

12. Submission of sample reports pertaining to Forensic Investigation of large value Asset Minimum three sample reports
Frauds in banks under a large consortium lending.

13. Preferably the Firm/entity should be empanelled/ worked with Please submit list of such audits
regulatory bodies like CBI, SEBI, SFIO, EOW of State Police etc. conducted.

14. Geographical Presence Must have all India presence

preferably in major cities.