Professional Ethics

This query is : Resolved

Prashant Khurana (Querist)
Follow

14 July 2011 Hello Sir.......

Sir, under clause 8 of part-1 of schedule-1, it is stated that before u accept the bank audit as current auditor you have to communicate with previous auditor. Suppose, u get the confirmation on 29th march that u have got one bank audit and u don't have enough time to communicate with previous auditor.

And u accept that work on conditional acceptance that if no objection was put by previous auditor then we will continue your work yet we are starting this audit work now as there is less time available.

but the previous auditor put an objection on your appointment or work then u will not continue your bank audit work and leave that bank's branch as unaudited.Because of that, the central statutory auditor(head office auditor of bank) will not be able to form final audit report as the audit of ur branch has not be done and audit report is not send.

In this case, who is ultimately responsible for the consequence or final audit report and ur branch audit and held guilty for the same?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

14 July 2011 You have to see why the ex-auditor has put on objection iof the objection is for non payment of fee then you can write to the bank to clear the fees and only after the fee is cleared you can start the audit. If objection is for expenses it is not a fee and you can continue as auditor of the bank this in not a professional misconduct. Generally the appointment for bank audit is only for one year and there cannot be any objection from the outgoing auditor.

Let me know the actual objection then only the matter can be clarified.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now