AUDITOR's Appointment

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JAYANTH AKKAVIL (Querist)

29 October 2009 Our auditor firm was doing the audit in the name of a partner firm.After first audit, they informed that due to administrative reasons, they are changing our account to another partner of the same audit firm.We asked for a resignation letter to regularise this.The resignation letter was received without a signatory's name or personal signature.In the place of signature, the name of the partner firm was written in ink.Is this letter having any validity.Is this practice permitted?

Ankur Garg

Ankur Garg (Expert)

29 October 2009 Hello,

Well i don't think this is the right way to treat your CA firm. There may be something wrong.

However wait for the response of other caclub experts.

Regards

chetan soni

chetan soni (Expert)

29 October 2009 Changing the signatory of the same audit firm does not require the resignation from the auditor.

It is mutual between the audit firm.

If you want to change the auditor firm then take the resignation from the auditor firm & appoint the another auditor.

JAYANTH AKKAVIL

JAYANTH AKKAVIL (Querist)

29 October 2009 I think my question was not clear enough.We have best of relations with the CA firm and have no intention of changing them as they are a top name and we are happy with them.Due to restrictions on the number of partners the MNC CA firm can have and the number of clients the partner can have, they themselves wanted to change our account to another partner who is under the same MNC firm. According to rules, for us to give an appointment letter to this new partner, we need a resignation letter from the old partner.My questionis, should this letter be not signed by an individual who is authorised to sign.They have written the name of the partner company in place of a signature.Is it legally sufficient, was the question.

gbalakrishnan

gbalakrishnan (Expert)

17 June 2013 NORMALLY PROFESSIONAL FIRMS SIGN THE COMPANY NAME ONLY SIRS. SO NOTHING WRONG WHEN THEY SIGNED AS IN PARTNER COMPANY. PROFESSIONAL COMPANIES ARE SOMETHING LIKE LLPs. SO THEY NEED TO SIGN IN THAT WAY ONLY SIR!

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