14 August 2011
I have sent a letter of communation to previous auditor of a pvt ltd company by Registered Post Acknowledgment Due. What is the reasonable time that I should wait if the previous auditor do not reply.
15 August 2011
Clause (8) of Part I of the First Schedule to the CA Act require to communicate acceptance of audit assignment to the previous auditor. Reasonable time should be allowed for any objection to be made by said previous auditor. Reasonable time is very subjective issue. But on a safe side 30 days time can be considered as reasonable time.
15 August 2011
Even a fortnight is also sufficient. You have correctly communicated if no reply is given ask the company to appoint you as the incoming auditor. In my opinion one or letter should be issued. If any dues are pending then the same should be settled first.
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