software technology parks of india - mah.stpi.in 2012/enquiry for apointment of...inviting sealed...

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Ref. No: STPI/Mum/Purchase /2012-13/56 Date: 01.08.2012

ENQUIRY To, Sub. Inviting sealed Quotations for appointment of Internal auditor for STPI Maharashtra

Dear Sir /Madam, We are "Software Technology Park of India" (STPI) a Government Organization working under Department of Electronics and Information Technology under Ministry of Communication & Information Technology, Govt. of India having its registered office at 6, CGO Complex, Lodhi Road, New Delhi. STPI – Maharashtra invites quotation for appointments of Internal auditor for the FY 2012-13. The contract can be extended further for next Financial Year subject to mutual consent/agreement on the same terms and conditions. STPI is the regulatory authority for software industry (100% EOU). STPI is also an ‘A’ class internet service provider. Following are the revenues sources for STPI:

1 Service Charges from STP Units 2 Datacom charges from Internet users. 3 Incubation charges from customers. 4 Other Miscellaneous

Scope of Internal audit is enclosed as Annexure – I. Other terms and conditions is enclosed as Annexure – II Work Load of Mumbai, Pune (inclusive of three sub-centers i.e. Nashik, Aurangabad & Kolhapur) & Nagpur for the F. Y. 2011 – 12 is as under:

Description STPI – Mumbai STPI –Pune STPI – Nagpur

Income Rs. 12.92 Crores Rs. 16.50 Crores Rs. 1.08 Crores

Expenses Rs. 4.50 Crores Rs. 4.60 Crores Rs. 0.75 Crores

Vouchers 4,627 Nos. 7,500 Nos 1,473 Nos.

You are requested that your quote should reach us upto 22.08.2012 by 1500 hrs at our office address: Software Technology Parks of India, Department of Electronics and Information Technology, Ministry of communication and Information Technology, International Infotech Park, Tower#7, Floor#6, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400705. Quotation received after the due date and time and not confirming to enquiry will not be considered. No Quotes by FAX/email will be entertained. The bids received will

be opened on same day at 1600 Hrs. STPI reserves all rights of acceptance or rejection of quotations without assigning any reason.

Director

Software Technology Parks of India,

Software Technology Parks of India DeitY, Ministry of Communication & Information Technology, Govt. of India.

---------------------------------------------------------------------------------------------------- International Infotech Park, Tower#7, Floor#6, Vashi Railway Station Complex,

Vashi, Navi Mumbai – 400705.

Tel. Nos. : (022) 27812102 / 03 / 04 Fax No. (022) 27812034

website: http://www.mumbai.stpi.in

http://www.mumbai.stpi.in/

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Software Technology Parks of India

Annexure - I Scope of Internal Audit

1.0 INTRODUCTION

1.1 Objective of this document is to enumerate the areas of operations and functions, which are to be covered by Internal Auditors (IAs). All aspects of the assigned areas are to be covered while conduction audit. However, this Audit Scope Document is not intended to be restrictive. Accordingly Internal Auditors are free to report their findings and observations on any other area not specifically covered.

1.2 An indicative set of “Guidelines on Audit Process” has been given at Appendix -1

and Internal Auditors shall have to follow the same.

1.3 Responsibilities for co-ordination of audit functions by Internal Auditors have been assigned to an Audit Coordinator for each Center. He/she shall fa fcilitate the process of audit.

1.4 Internal Auditors shall submit their report covering all points mentioned in guideline

for audit.

1.5 Flash reports as mentioned in Para 4 of the guidelines on Internal Audit Process (Appendix-1) shall be submit in a format befitting the contents thereof.

1.6 Internal auditor shall obtain approved documents like standard operating practices,

delegation of authority, tariff chart etc. from the unit to be used in conducting audit.

1.7 Activities carried out at these centers are as under:

a) Providing high speed data communication services like soft point, soft link, and datacom services to software export unit.

b) Providing statutory services to STP and EHTP units.

c) Providing incubation facilities.

d) Providing project consultancy and management services. 2.0 GENERAL PARAMETERS & OBJECTIVES 2.1 Generally cent percent coverage of all types of transactions is expected unless

specifically stated under ‘Guidelines For Audit’ relevant to particular Para of the Audit Scope Document. However, where full coverage is not possible due to large volumes, the portion of coverage should be as maximum as possible but not less than the portion required for forming considered opinion.

2.2 Sampling techniques, adopted for selecting transactions out of various groups of transactions, are also to be reported keeping in view the contents of paragraph 2.1 as above. Both external and internal documentary evidences are to be verified.

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2.3 Every facet of the areas for audit is to be checked in detail, verified, and reviewed. For this Internal Auditors shall cover all the aspects, as are detailed in the following paragraphs and all others that are required depending upon associated facts and circumstances.

Objectives at every step are to:

a) Reduce lapses, gaps, material departures, etc. in implementation of systems and procedures, to the barest minimum, and ultimately to zero;

b) Ensure absolute and total compliance of all statutory and regulatory

provisions; c) Establish accuracy, authenticity, and acceptability of financial and material

accounting, books of accounts, all other related records, documents and systems;

d) To verify that the system of Internal check is effective in design and operation

in order to ensure the prevention of and early detection of defalcations, frauds, misappropriations and misapplications;

e) To identify areas of significant inefficiencies in existing systems and to suggest

necessary remedial measures; f) To confirm the existence of financial propriety in all decisions and verify

compliance to Government and statutory requirements; g) Optimise Company’s exposure to risks and timely and adequate precautions; h) Achieve cost savings to the maximum possible extent without impairing speed

and quality of performance; i) Improve and ensure revenue earnings; j) Achieve customers ‘delight and vendors’ pleasure; k) Endeavor for prevention and quick detection of frauds of any nature surprise

verifications and adopting suitable audit procedures;

l) Ensure adequacy of documentation, safe keeping and maintenance of assets, inventory, premises and records; and

m) Achieve and sustain all-round improvements in, efficiency, effectiveness, speed and quality of performances at all levels and times.

3.0 INSTRUCTIONS FOR INTERNAL AUDITORS

3.1 Audit is to be conducted immediately after the end of each quarter i.e. first week of next quarter.

3.2 Internal auditor is to depute competent audit personals headed by Chartered Accountant for the audit work.

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3.3 Audit has to stress more on systems and processes. All gaps, lapses and departures from approved Standard Operating Practices (SOP), and Head Office guidelines are to be reported with instances of transactions and events.

3.4 Comprehensive replies and clarifications are to be obtained from the location head of operations covering names and location of Auditee’s who have provided such replies are to be specifically quoted.

3.5 Reporting Formats are strictly to be adhered to and observations will at least have to cover all the aspects and facets of audit as per this Audit Scope Documents.

3.6 Executive Summary in ‘Section B’ should contain only important observations

involving ‘Financial Loss’, ‘System Failure’ and ‘Major Non-Compliance of Processes’.

3.7 Reports, complete in all respects should definitely be submitted within 30th of next

month from the end of the quarter.

3.8 Any fraud, defalcations, cash shortages, theft, major anomalies and failure in systems and process are to be immediately reported by way of Flash Report to Head Office.

3.9 Latest documented SOPs and relevant Circulars issued from Head Office are to be

local management. 4.0 STPI CENTERS

4.1 Background STPI has 13 centers located all over India. All these centers are independent accounting unit and carried out following activities:

a) Providing high-speed data communication services like soft point, soft link, and datacom services to software export unit.

b) Providing statutory services to STP and EHTP units.

c) Providing incubation facilities.

d) Providing project consultancy and management services. To carry out these activities it maintains Earth Stations. Billing is done by the center for providing these services to customers and collect payments. Further it maintains its bank account for making payments to service providers/suppliers for obtaining services/purchases made. For executing various projects it awards contracts, get the work executed and make payments to contractors. Statutory compliances like deduction and deposit of TDS and filing TDS return, collection and deposit of Service Tax, VAT and filing Service Tax, VAT return and getting the assessment done is the responsibility of these centers.

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Software Technology Parks of India 4.2 Purpose The purpose of audit of centers is to ensure that:

a) The activities are carried out as per the processes and guidelines issued by head office.

b) All the transactions are properly accounted for.

c) There is no leakage of revenue.

d) Bank accounts are reconciled timely.

e) All statutory compliances are made in time.

f) All contracts for projects purchases and services are awarded as per the

guidelines of head office.

g) All expenditure is duly supported, approved by the authority as per delegation of powers and properly accounted for.

h) Books of accounts and all statutory records are timely updated and maintained

properly. 4.3 Guidelines for Audit

Revenue item Internal Auditors is to review and report the followings:

4.3.1. That invoice for various services have been raised as per the agreement and Service Initiation form.

4.3.2. That proper party wise records of Softex forms certified by the center have been maintained and that STP Service charges have been correctly charged as per the slab applicable to the customers.

4.3.3. That in case of new customers advance for three years collected for Statutory services has been booked correctly in accounts and shown as liability and not booked as income. Only charges for the year under consideration have been booked as income.

4.3.4. That invoice for project consultancy and incubation has been raised as per terms of agreement. Further advance received towards execution of project and Security deposit towards incubation service have been booked as liability and not taken to income.

4.3.5. That Interest income and other income have been properly accounted for.

4.3.6. That all reconciliation stated in reconciliation section has been carried out and reported.

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Expenses Internal auditor is to carried out following and report on same: 4.3.7. Review of internal check and control procedures with an objective to assess their

adequacy and strengthen, in respect of a) Passing and payments of establishment bills, (i) viz salary, TA / LTC, Medical

and local conveyance, staff lease and office rent.

b) Payment for procurement of services and supplies like data link, telephone, printing and stationery, vehicle maintenance, office maintenance, consultancies, travel etc.

c) Contractor / Suppliers bills.

d) Consultancy fees bills.

e) Staff advances.

Capital Expenditure.

4.3.8. Vouching of receipts, payments and journal vouchers for proper coding/ allocation,

authentication and accountal.

4.3.9. Check payroll of employee, leave record, attendance registers etc. and report deficiencies’ if any.

4.3.10. Review the application of tendering system and examine various contracts

awarded for expenses, projects, purchase, obtaining data link services, etc and confirm that these are awarded as per applicable guideline of the STPI.

4.3.11. Examine and comment on the incidence of single tender awards and comment on the reasonableness of the justification given in single tender contracts.

4.3.12. To carry out post audit immediately after completion of the project covering the following aspects:

a) Time over run

b) Cost over run

c) Timely billing and recovery

4.3.13. Review and confirm that all the expenses are booked as per various applicable accounting standards issued by the Institute of Chartered Accountants of India.

4.3.14. Review and confirm that no item of revenue nature has been capitalized and also

that no item of capital nature has been accounted for as revenue.

4.3.15. Review and confirm whether expenses subject to Fringe Benefit Tax has been correctly accounted for under the respective account code.

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Statutory compliances

Internal Auditors is to review and report on followings: 4.3.16. Whether tax deduction at source are being made in all cases, as applicable

under the Income Tax Act, 1961, at prescribed rates and that TDS deposits are being made within the prescribed time.

4.3.17. Whether Service Tax has been charged in all cases, as applicable under the Service Tax Rules, at prescribed rates and that deposits are being made within the prescribed time and whether input Service Tax has been properly accounted for and claimed.

4.3.18. Whether Value Added Tax (VAT)/ Central Sales Tax has been charged correctly,

as applicable under relevant statue, at prescribed rates and that deposits are being made within the prescribed time.

4.3.19. Whether Contribution towards Provident Fund has been properly deducted and

deposited within prescribed time.

4.3.20. Whether all statutory returns have been filed with respective authorities in time. If not report the deficiencies.

4.3.21. Whether estimation of income and expenses and TDS has been correctly

reported to corporate office.

4.3.22. Whether proper records required under labour law has been kept and timely updated.

Others Internal auditors are to cover following other areas:

4.3.23. Review of Bank reconciliation and scrutiny of old unlinked amount and bank

balances.

4.3.24. Scrutiny of books of accounts for their completion, reconciliation, correctness and adjustments.

4.3.25. Review of Fixed Assets records for proper and complete accountal, record,

depreciation and verification. Further confirm that physical verification of fixed assets is being carried out as per the system laid down in this regard. Further, adjustments for excess or shortages are to be carried out in the books in the same year. This aspect needs to be checked and included in the report. It should also be checked and reported if any old provisions are still to be adjusted. Internal Auditors should comment on the adequacy of coverage, both in terms of number of items as well as value.

4.3.26. Report compliance of internal audit observations reported in earlier Internal Audit

reports but outstanding for compliance.

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4.3.27. Verify and comment on compliance of the same in respect of Recognition and Disclosure of Provisions, Contingent Liabilities and Contingent Assets, as per Accounting Standard AS 29.

4.3.28. Confirm that apart from the cases reported by them specifically in their report,

there are no other cases of violation of the Delegation of Powers of STPI.

4.3.29. Check / endorse / comment on the provision, if any, lying in the project’s books towards Unmoved Items of Capital-Work-In-Progress (CWIP) especially from the point of view whether such provision is needed to be retained or written back.

4.3.30. Examine and report on whether balances in the Contractor Accounts in the

General Ledger have been duly reconciled.

4.3.31. Review the Work-in-Progress (WIP) and point out old cases where there is no movement in the account and work has been stopped / abandoned for over a year.

4.3.32. Review of fee outstanding, retention money, amount recoverable, security

deposits (Receivable & Payable).

4.3.33. Various Manuals lay down the systems and procedures to be followed in specific areas. Internal Auditors are advised to verify compliance with such systems and report thereon.

4.4 Reconciliation and Other Details Internal Auditors is to review and to give following reconciliation statement, complete the formats and other information in their audit report. 4.4.1. Review and Reconciliation of the fixed assets gone beyond repair and needs to be

written off and report the same in Format as per Annexure -4.4.1 (a), ii) Fixed assets arranged from other STPI Centers under Stock transfer but no financial entry made in the Books of Accounts and report the same in Format as per Annexure -4.4.1 (b) and iii) Fixed assets sent to other STPI Centers but no financial entry made in the Books of Accounts and report the same in Format as per Annexure -4.4.1 (c).

4.4.2. Review and Reconciliation of STP Service charges and report on same in the format as per Annexure-4.4.2.

4.4.3. Review and Reconciliation of Soft link Income and report on same in the format as

per Annexure-4.4.3.

4.4.4. Review and Reconciliation of Soft point Income and report on same in the format as per Annexure-4.4.4.

4.4.5. Review and Reconciliation of Incubation Income and report on same in the format

as per Annexure-4.4.5.

4.4.6. Review and Reconciliation of Project & Consultancy Income as per agreement and report deficiencies.

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4.4.7. Review and Reconciliation of Interest earned on FDR and report on same in the format as per Annexure-4.4.6.

4.4.8. Review and Reconciliation of Data Link Charges and report on same in the format

as per Annexure-4.4.7.

4.4.9. Physical verification of Cash and Softex form.

4.4.10. Verification of Bank reconciliation and report on same.

4.4.11. Verifying Balance sheet and Profit and Loss Account giving details of Ageing analysis of Sundry Debtors (Format as per Annexure-4.4.8), Details of Provision for Doubtful Debtors/ Advances, Ageing analysis of Sundry Creditors (Format as per Annexure-4.4.9), Details of Outstanding liabilities and their subsequent payments (Format as per Annexure-4.4.10), Details of statutory liabilities and their subsequent payment along with copy of challans. (Format as per Annexure-4.4.11). Auditors should obtain the details and verify the same and report in the format stated above.

4.4.12. Review and reconciliation of TDS deducted by parties on payment to STPI and

report on same in the Format as per Annexure – 4.4.12. HEAD OFFICE 5.1 Background The head office of Society is located at Delhi. Head office is also an independent accounting unit and carried out following activities:

a) Strategic planning and control of all the STPI centers and sub-centers.

b) Coordination with various Ministries, Policy Making and Enforcement of Directives of Govt. of India.

c) Statutory audit of Society.

d) Consolidation of Financial statement.

e) Preparing of Income Tax return, its filing and Income Tax Assessment.

f) Administration of Provident Fund Trust and Gratuity Fund Trust.

g) Other Administrative works. 5.2 Purpose The purpose of audit of head office is to ensure that:

a) The activities are carried out as per the processes and guidelines issued by Ministry.

b) All the transactions are properly accounted for.

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c) Bank accounts are reconciled timely.

d) All statutory compliances are made in time.

e) All expenditure is duly supported, approved by the authority as per delegation of powers and properly accounted for.

f) Books of accounts and all statutory records are timely updated and maintained properly.

5.3 Guidelines for Audit Revenue item Internal Auditors is to review and report the followings: 5.3.1. That Interest income and other income have been properly accounted for.

5.3.2. That all grants received have been properly accounted for.

Expenses Internal auditor is to carried out following and report on same

5.3.3. Review of internal check and control procedures with an objective to assess their

adequacy and strengthen, in respect of

a) Passing and payments of establishment bills, (i) viz salary, TA/LTC, Medical and local conveyance, staff lease and office rent.

b) Payment for procurement of services like telephone, printing and stationary, vehicle maintenance, office maintenance, consultancies, travel etc.

c) Contractor / Suppliers bills

d) Consultancy fees bills

e) Staff advances Capital Expenditure 5.3.4. Vouching of receipts, payments and journal vouchers for proper coding/

allocation, authentication and accountal.

5.3.5. Check payroll of employee, leave record, attendance registers etc. and report deficiencies’ if any.

5.3.6. Review the application of tendering system and examine various contracts awarded for expenses, projects, purchase, consultancy etc and confirm that these are awarded as per applicable guideline of the STPI.

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5.3.7. Examine and comment on the incidence of single tender awards and comment on the reasonableness of the justification given in single tender contracts.

5.3.8. Review and confirm that all the expenses are booked as per various applicable accounting standards issued by the Institute of Chartered Accountants of India.

5.3.9. Review and confirm that no item of revenue nature has been capitalized and also that no item of capital nature has been accounted for as revenue.

5.3.10. Review and confirm whether expenses subject to Fringe Benefit Tax has been correctly accounted for under the respective account code.

Statutory compliances Internal Auditors is to review and report on followings:

5.3.11. Whether tax deduction at source are being made in all cases, as applicable

under the Income Tax Act, 1961, at prescribed rates and that TDS deposits are being made within the prescribed time.

5.3.12. Whether Contribution towards Provident Fund has been properly deducted and deposited within prescribed time.

5.3.13. Whether all statutory returns have been filed with respective authorities in time? If not report the deficiencies.

5.3.14. Whether Advance Tax and Advance Fringe Benefit Tax has been properly calculated and deposited in time.

5.3.15. Whether proper records required under labour law has been kept and timely updated.

Others Internal auditors is to cover following other areas 5.3.16. Review of Bank reconciliation and scrutiny of old unlinked amount and bank

balances.

5.3.17. Scrutiny of books of accounts for their completion, reconciliation, correctness and adjustments.

5.3.18. Review of Fixed Assets records for proper and complete accountal, record, depreciation and verification. Further confirm that physical verification of fixed assets is being carried out as per the system laid down in this regard. Further, adjustments for excess or shortages are to be carried out in the books in the same year. This aspect needs to be checked and included in the report. It should also be checked and reported if any old provisions are still to be adjusted. Internal Auditors should comment on the adequacy of coverage, both in terms of number of items as well as value.

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5.3.19. Report compliance of internal audit observations reported in earlier Internal Audit Reports but outstanding for compliance.

5.3.20. Verify and comment on compliance of the same in respect of Recognition and Disclosure of Provisions, Contingent Liabilities and Contingent Assets, as per Accounting Standard AS 29.

5.3.21. Confirm that apart from the cases reported by them specifically in their report, there are no other cases of violation of the Delegation of Powers of STPI.

5.3.22. Check / endorse / comment on the provision, if any, lying in the project’s books towards Unmoved Items of Capital-Work-In-Progress (CWIP) especially from the point of view whether such provision is needed to be retained or written back.

5.3.23. Review the Work-in-Progress (WIP) and point out old cases where there is no movement in the account and work has been stopped / abandoned for over a year.

5.3.24. Various Manuals lay down the systems and procedures to be followed in specific areas. Internal Auditors are advised to verify compliance with such systems and report thereon.

5.3.25. Review and comment whether MIS report received from centers periodically has been correctly compiled.

5.4 Reconciliation and Other Details

Internal Auditors is to review and to give following reconciliation statement, complete the formats and other information in their audit report.

5.4.1. Review and Reconciliation of the fixed assets gone beyond repair and needs to be written off and report the same in Format as per Annexure -4.4.1 (a), ii) Fixed assets arranged from other STPI Centers under Stock transfer but no financial entry made in the Books of Accounts and report the same in Format as per Annexure -4.4.1 (b) and iii) Fixed assets sent to other STPI Centers but no financial entry made in the Books of Accounts and report the same in Format as per Annexure -4.4.1 (c).

5.4.2. Review and Reconciliation of Interest earned on FDR and report on same in the format as per Annexure-4.4.6.

5.4.3. Physical verification of Cash.

5.4.4. Verifying Balance sheet and Profit and Loss Account giving details of Ageing analysis of Sundry Creditors (Format as per Annexure-4.4.9), Details of Outstanding liabilities and their subsequent payments (Format as per Annexure4.4.10), Details of statutory liabilities and their subsequent payment along with copy of challans. (Format as per Annexure-4.4.11). Auditors should obtain the details and verify the same and report in the format stated above.

5.4.5. Review and reconciliation of TDS deducted by parties on payment to STPI and report on same in the Format as per Annexure – 4.4.12.

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Appendix-1 Guidelines on Audit Process for Internal Auditors for Centers and Head office Objective of this document is to lay down broad guidelines to be followed during the course of conducting internal audit and verification. The following is only an illustrative delineation and not comprehensive. 1.0. Audit & Verification

1.1 Members of the internal audit Team will have to ensure that all activities for

auditing and submission of reports are conducted and completed strictly adhering to the given time schedule.

1.2 Each and every group of transactions and operational events are to be reviewed using appropriate audit tools and checking of the required extent, degree, level and frequency befitting their respective nature, merit, associated circumstances, immediate/ adverse financial implications and possibilities thereof in future.

1.3 Extend of verification suggested in the ‘Audit Scope Document’ (ASD) is only

indicative except specified cases cent percent verification.

1.4 Audit findings on lapses, gaps in propriety, irregularities, etc. may lead to future audit in depth at the same time and in continued course. The Internal Auditors shall carry out the same in one go.

1.5 Follow up points and commitments from auditee’s, carried over from previous

period, are to be verified and corroborated with subsequent transactions. This is to check and confirm whether:

a) Previous commitments have been fulfilled and if not what are the compelling

reasons for such failure with revised commitment for completion;

b) Lapses/gaps in implementation of processes have been eliminated;

c) There is no deterioration in quality and speed of work, and so on.

1.6 Audit and verification shall strictly be conducted every quarter as per the given schedule and the revised audit scope document (ASD). Draft reports with complete details of transactions and / or references are to be issued to the location head immediately upon completion of audit.

2.0. Draft and Final Reports

2.1. The Auditee shall submit replies and clarification within three days of receipt of the

Draft Report. Internal Auditors shall conduct discussion with Auditee’s, if requires, immediately upon receipt of replies.

2.2. Replies and clarifications of Auditee’s shall essentially cover all the following

aspects, as are applicable to a specific point of audit observation / query:

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a. Reasons for the query / observation and issues raised stating the exact stage(s) at which procedural lapses and gaps have taken place giving reasons after needful diagnostics analysis;

b. Corrective actions initiated with committed date for ultimate resolution. Such commitments are to be obtained from the related functional lead.

c. In case the matter has been referred to head office for action and / or resolution, details of communication like email etc. and the names of the person with brief details of actions expected.

d. Actions taken to prevent recurrence of similar errors, issues, or lapses in future; and

e. Time frame for taking action, if not already taken, and achieving resolution. 2.3. The Final Report shall be submitted within 30th of the next month from the end of

quarter strictly complying with the following process and after due clearance by the Partner in-Charge.

2.4. Observation and queries, resolved with replies from Auditee’s, may not be included in the Final Report unless they are of material nature and/or indicate lapses and gaps in implementation of systems and procedure.

2.5. Unresolved queries and observation of Internal Auditors are to be included in the

Final Report and ‘Executive Summary’ after final review by the Partner in-charge. Points of difference in opinion are to be specifically highlighted.

3.0. Final Report to Location Head with Auditee’s Replies

3.1. The Final Report duly signed by partner / proprietor is to be circulated to the

following members through e-mail:

a. Head – Audit location

b. Head – Finance of the Audit location

c. Head – Finance of Head office 3.2. The Final Audit Report shall contain the following in the given seriatim:

a. Covering letter;

b. Executive Summary – Major audit observations, findings, etc., along with

comments of Internal Auditors as well as replies & commitments of Auditee’s;

c. Table of Time Statistics with the following line items:

i. Commencement of Audit

ii. Completion of Audit

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iii. Submission of the Draft Report to Auditee’s

iv. Discussions with Auditee’s

v. Submission of reply by Auditee’s

vi. Submission of Final Report.

d. Extent of verification and method of selection of transactions for test checking, in

cases where cent percent audit is not prescribed.

e. Compliance section – Present status of all follow up points as detailed in paragraph 1.5 above in a tabular form along with revised date committed by the Auditee for compliance.

f. Internal Auditors can include any other observation, point, which they may wish, which are not specifically covered above and at paragraph 4 below, depending upon contents thereof.

4.0. Flash Reports Any “Observation” of critical importance and bearing on company’s operations with financial implication of whatever values to be reported immediately to Finance Head at Head office. This shall include fraud, theft, defalcations and any other irregularity due to internal & external factors. Such Observations are to be discussed with the senior most member of the location and replies shall be asked for within twenty-four hours. Reports are to be marked as “Flash Report” and addressed to Head Finance-Head office. The Internal Auditors should feel free to also inform him over telephone call in case there is urgency. Internal Auditors need not wait for any reply beyond twenty-four hours.

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FORMAT OF FINAL AUDIT REPORT

Date: Sh……….. Software Technology Parks of India Address (Center/Unit Address) Dear Sir, Ref: Internal Audit Report No. …………for ………..-(Name of the location/city) Please find enclosed herewith the Internal Audit Report No…….for the period from _____to____, for your kind perusal. Yours faithfully For XYZ & Co. Chartered Accountants Copies To: 1. 2. 3.

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Section B: Format of The Executive Summary

Sr. No.

Audit Observations Report Para Ref.

Financial Implication (Rs.)

% of Audit coverage based on transaction volume / value

Auditee’s Response

1

2

3

4

Section C: Time Statistics

Audit Report No.

:

Period of Coverage

: _______to_______

Date of Commencement

:

Date of Completion

:

Date of Submission of Draft Audit Report

:

Date of Discussion with Auditee

:

Date of Reply by the Auditee

:

Date of Submission of Final Report

:

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Section D:

Detailed Audit Report: All findings should be reported in this format Observation Risk & Implications Auditee’s Replies Suggestions

Section E: Audit Areas / Aspects, wherein, “No observations are found after verification” are to be mentioned in one paragraph in this section”.

Section F: Extent of Verification

Sr. No.

Particulars Total No. of Documents for the Quarter

Documents verified for the Quarter

% Verified

1

2

3

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Group G: Compliance Section Compliance by the Auditee’s on the Audit Observations of the earlier Audit Reports.

Sr. No.

Audit Observations Auditee’s Response/with original Target Date

Current Status (Complied/Compliance in progress/ Not worked on)

Revised Target Date(s) (if not complied along with reasons)

1

2

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Annexure - II Other terms and conditions

Pre-qualifications Criteria:

1. The firm should have more than 5 years of experience in the field of accounting and auditing.

2. The firm should have the sufficient staff and infrastructure to carry out the

audit in different centers of STPI – Maharashtra. Procedure for submission of the proposal 1. Auditor’s information: Auditor has to give brief introduction of their firm,

client list, work performance etc as per “Annexure – A”. Please attach the CV of all the partners of the firm.

2. Commercial Details: the prices should be provided strictly as per the format

given at “Annexure - B”. 3. Validity of Quotes: Prices should be valid for a period of 90 days from the

last date of submission of quotes. 4. Sealed under Two-Bid system: All the quotes / Tender should be in one

outer cover super scribed as “Quotation for appointment of Internal Auditor for STPI – Maharashtra” addressed to “Director”, Software Technology Parks of India, Department of Electronics and Information Technology, Ministry of communication and Information Technology, International Infotech Park, Tower#7, Floor#6, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400705. Tender is invited in two parts i.e.,

Envelope (1): TECHNICAL BID containing Auditor’s Information:

A brief introduction of the firm, Client list Work performance etc as per Annexure-A Other Relevant documents.

Envelope (2): FINANCIAL BID containing:

Annexure-B: prices should be strictly as per the format given. Terms of Payment: 1. 25% payment will be released on submission of 1st quarter report. 2. 25% payment will be released on submission of 2nd quarter report.

3. 25% payment will be released on submission of 3rd quarter report.

4. 25% payment will be release on finalization of annual accounts by STPI HQ.

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Annexure – A (On Letter Head)

AUDITOR’S INFORMATION

1) Full Name & Address with ……………………………………….

Registration No. ……………………………………….

……………………………………….

……………………………………….

2) Contact Number : ………………………………………

3) Fax Number: ……………………………………….

4) Mobile Number: ………………………………………

5) E-mail id: ……………………………………….

6) Experience ………………………………………

7) Service Tax Regn. No. ………………………………………

8) Client List ……………………………………..

(Attach details of Govt. & Semi Govt. clients)

9) Additional Information: ……………………………………….

Place :

Date : (Authorized Signatory)

With seal

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Annexure – B (On Letter Head)

Commercial bid for internal Audit for STPI Maharashtra F. Y. 2012-13

Particular

Total cost including taxes and all other charges for e.g. Lodging, boarding &

Travelling / conveyance (in Rs.)

STPI – Mumbai

STPI - Pune

STPI – Nagpur

Place :

Date : (Authorized Signatory)

With seal