Aceptnce of apmnt as an auditor if noc nt gvn by prev aud

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2013 Dear All,
One of the client want to appoint our firm as an auditor but NOC is not given by the previous auditor. the whether we can accept the appointment . plz explain the procedure.

waiting for the reply.........
thanks to all...........

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 December 2013 No you should not. It shall be against the icai guidelines. Please meet the previous auditor and try to understand his reasons for objections

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2013 thanks Nikhil ji ... can you please refer some section no.

Ganeshbabu K

Ganeshbabu K (Expert)
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23 December 2013 New auditor is required to take NOC as per Clause 8 of Part 1 of Schedule 1 of Chartered Accoutancy Act.

This is because if the undisputed fees of the previous auditor is not paid to him/ or to know whther he is having any professional objection . If there is no such reason than the new auditor can accept the audit even without getting the NOC from the previous auditor.

But care should be taken that the new auditor must communicate with the previous auditor by Registered Post and must have the receipt with him because non compliance of CA Act would result into misconduct by the new auditor.

If previous auditor does not reply , it will be considered that he has no objection.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 December 2013 I believe the above reply by ganesh bhai suffice your requirements :)

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2013 Thankew very much Ganesh ji & Nikhil ji,

one more que whether Trust is required to file ROC returns if yes then if old auditor filed form 23 B appointing himself then whether we can now again file form 23 B.
secondly client has already sent a letter to previous auditor but previous auditor could not replied.but i think new auditor himself required to obtain NOC from previous auditor.plz confirm...

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2013 sorry i asked sily que ROC is applicable to companies only but plz let me know is there any ROC type requirement in case of educational trust. ie whom to report for our appointment as the auditor of the trust...