Lien on books

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anu Ghai sssssssssssssssssssss

anu Ghai sssssssssssssssssssss (Querist)
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05 September 2016 In case auditor has not been paid so can an auditor exercise his lien on books?

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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05 September 2016 Yes he can have lien

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anu Ghai sssssssssssssssssssss

anu Ghai sssssssssssssssssssss (Querist)
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06 September 2016 But i think now as decided in SEKSENA Vs SHARMA 's case , auditor cant exercise his lien on books... I am not sure plz tell .

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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06 September 2016 Please go through the link
https://www.caclubindia.com/experts/auditor-s-lien-1976204.asp

Amol S Joglekar

Amol S Joglekar (Expert)
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06 September 2016 See, try to consider a subtle point......
AUDITOR is not supposed to do anything in the preparation of books of accounts.....what s/he can do is the AUDIT......and hence lien can NOT be exercised....unlike say a tailor, accounts writer,

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anu Ghai sssssssssssssssssssss

anu Ghai sssssssssssssssssssss (Querist)
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06 September 2016 Its so convoluted . Which expert is right?

Amol S Joglekar

Amol S Joglekar (Expert)
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06 September 2016 the point is simple.....an AUDITOR acting as AUDITOR only has no business to do with doing any processing/ work on the books of accounts AND hence no lien can be exercised on the books.

On the other hand, if an Auditor, in addition to being an auditor, is giving some services to company, where the auditor can beyond any doubt prove that the auditor has done some processing on books of accounts....then the auditor in the capacity of processor of books of accounts can have LIEN.....

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