ICAI: FAQs Related To The Way Members Should Respond To Tenders

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ICAI: FAQs Related To The Way Members Should Respond To Tenders

The statement released by Institute of Chartered Accountants of India (ICAI) in Part III or Section 4 of the Gazette of India depicts the way CA firms should deal with tenders (not about Audit Tenders which don’t follow Minimum Fee Guidelines).

Mentioned below are some FAQs answered by ICAI in order to solve the queries of CA Firms who are lost or confused about the way of Responding to Tenders (FAQs are prepared for general reference. Members must make their judgments clear before responding to any tender).

Frequently Asked questions (FAQs)answered by ICAI in order to solve the Queries of CA Firms

Q.1 – From when this notification/statement came in effect?

Ans.1 – The statement was published on 7 April 2016 depicting the guidelines on the way CA Firms should respond to the tender. That means all the tenders after 7 April will be handled allied to the notification/statement issued by ICAI.

Q.2 – Can an ICAI certified member accept assignment for the where the advertisement of tender was issued prior to 7 April 2016?

Ans.2 – The notification by ICAI is valid for tenders isssued on or after 7 April 2016. Therefore, the practicing ICAI member can also accept assignments where the advertisement of tender was issued before 7 April 2016.

Q.3 – Is an ICAI member Eligible to respond to the tenders that are reserved for a Chartered Accountant?

Ans.3 – No, an ICAI certified member is not eligible to respond to any tender issued by an organization in the areas of service specific for Chartered Accountants. Like audit and attestation services, audit under Companies Act 2013, Income Tax Act 1961 and so on.

However, the member can respond to the about mentioned tenders only if the fee of the assignment is mentioned in tender documents.

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Q.4 – Is an ICAI member eligible for dealing with tenders that come under the services-criteria of professionals other than a CA? Mostly CAs are seen responding to tender documents?

Ans.4 – Practicing members of ICAI can respond to the tenders that come under the services-criteria of professionals other than a CA.

Q.5 – Is an ICAI member eligible for dealing with tenders that come under the service-criteria of CAs as well as other professionals and in which they are together invited to respond?

Ans.5 – ICAI member is eligible for responding to tenders that come under the service-criteria of CAs as well as other professionals and in which they are together invited to respond.

Read Also: ICAI Significance And 14 FAQ For CA Firm Registration on The Portal

Q.6 – Is an ICAI certified practitioner eligible to respond to assignments where the quotations are received from institute members or firms via individual letters?

Ans.6 – ICAI certified member is eligible to respond to assignments that rely on individual letters issued.

Q.7 – Is an ICAI certified member or firm eligible to respond to tenders in which only technical bid has been asked for from the members after financial quotations request from shortlisted members through individual letters?

Ans.7 – A member of the Institute in practice can respond to the above-mentioned tenders.

Q.8 – What are the consequences of not following the guidelines on tenders issued by ICAI?

Ans.8 – Not following such guidelines will lead to authority taking strict action as it is a decision of the ICAI Council.

Q.9 – Is it possible that ICAI demands documents of technical bids submitted by members?

Ans.9 – ICAI has full authority to demand such documents.

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