Օf Open Tender for Independent  Audit Organization Engaged in External Audit

In compliance with article 58(1) of the RA Law on Bank and Banking Activities, the RA Law on Public Auctions, and the requirements of the Procedure for Selection of Independent Auditor by Commercial Banks Operating in RA Territory as approved under the Decision of the RA Central Bank Board N 162-N dated 29.06.04:
Converse Bank CJSC announces an open tender (hereinafter "the Tender") for selection of the independent auditor to conduct an external audit of annual financial statement for 2009.
Tender will be held at the address: 26/1 V. Sargsyan Str., Republic Square, Yerevan, Armenia.
The bids for Tender are to be submitted in sealed envelops (one original document and one copy in each) to Converse Bank CJSC until August 6, 2009, 16:00 by hand or via mail.
Information and documents contained in the bid for Tender must be in Armenian and/or in English, while the foreign bidders may submit documents in English. Bids for Tender must be submitted in two envelops stuck, sealed, and signed by an authorized person.  Envelops with original document and its copy must bear the words "original" and "copy" respectively along with the address for submission of Tender bid, title of Tender, Terms and Conditions of Tender, and the words "Do not open until bid opening meeting," name of bidder, place of business, telephone number or other contacts.

Organizations qualified for participation in Tender are the audit firms meeting the following criteria:

• At least 3 years of experience in auditing,
• Auditing experience in the territory of RA,
• Staff of auditors with certain qualification and expertise.

Selection criteria for audit firms from other countries are as follows:

• International fame,
• Economic efficiency and earning capacity,
• Belonging to internationally recognized top ten audit organizations,
• Experience in conducting audit in transition economies.

Bidders are required to submit information on as follows:

• Documents specified in the "Procedure of Selecting an Independent Audit Organization" stipulated by the Bank
• Qualification level and expertise of staff involved in audit practice copies of corresponding qualification certificates are required),
• Auditing methods, scope, and rough plans in presentation format,
• Audit costs (separately for each step and stage of work processes), including all taxes and duties,
• Other information upon necessity.

Until the day, when the winner in Tender is announced, the Bank Board may require the participants in public tender to submit additional information and documents.
Scope of audit activities covers:

1. Annual financial statement for 2009 (adequate with International Accounting Standards) /Auditor's report and Letter to Management/.
2. Audit activities for review of the financial statement for 3 quarters of 2009 must begin no later than on October 15. And audit activities for review of annual financial statement for 2009 must begin no later than on December 15.
3. The documents, such as the auditor's report and Letter to Management, are to be filed no later than March the 5-th of the next year after the year under review.
4. Annual financial statement for 2009 (adequate with International Accounting Standards); auditor's report and Letter to Management must be prepared in Armenian and English, and the documents prepared in both languages must be equally valid.
5. Audit must cover at least:
   a) Verification of reliability of the bank accounting records;
   b) Verification of the bank financial and investment activities adequacy with the RA Banking Legislation and by-laws;
   c) Analysis of the Bank operational risk level.
6. Auditing may as well include:
   a) IT sphere - current status, certain offers on development;
   b) Verification of statements to be submitted to the Central Bank of Armenia;
   c) Evaluation of the level of introduction, application and efficiency of laws on combating money laundering and financing of terrorism.
7. At least 30% of staff involved in auditing activities must have an international qualification and/or at least a three-year experience with bank audit.
   A bidder who offers the best terms as regards the methods, financial feasibility and organizational aspects of auditing activities will be recognized as a winner.
8. The maximum costs for auditing amounts to AMD 12,0 million, without VAT.

The bids for tender will be opened at a special meeting of the Committee for Performing Operations specified by the "Procedure on Selection of an Independent Audit Organization" to be held on August 9, 2009 at 16:00 at the address: 26/1 V.Sargsyan Str., Yerevan, Armenia. The Board Chairman of Bank must put a signature on all sheets contained in envelops to be opened at public tender. Persons (representatives) who filed the bid for tender may be present at the Bank special meeting for opening of bids.

Agreement with the tender winner will be signed for validity period till August 31, 2009.
Persons who filed bids for tender may receive free of charge from Converse Bank CJSC a copy of regulation on Selection of Independent Audit Organization and familiarize themselves with it at the address 26/1 V. Sargsyan Str., Yerevan, Armenia. The electronic version of the procedure is available at the Bank website at URL: http://www.conversebank.am/ .

Bank takes no risks associated with the real losses caused to bidders as a result of any changes in this public announcement.

For further information please refer to Mr. Rafayelov, the Head of Financial Monitoring and Supervision Department.

26/1 V. Sargsyan Str., Yerevan, Armenia 0010
"Converse Bank" CJSC
Tel: 511 257
Fax: 511 212
E-mail: [email protected]
Website: http://www.conversebank.am/