I have received an offer for conducting Tax Audit of a proprietorship concern. I have communicated with previous auditor for NOC and I have been informed by the previous auditor that dues of previous year are pending. I asked client to clear dues of previous Tax Auditer. In return client says that the fees payable to previous auditor is in dispute.
So, I would like to know what further action needs to be taken by me.
20 September 2012
Sir, I heard if the fees due to previous auditor is in dispute then the new auditor should not take such audit client. But i am not sure in this regards because i thinking at the time of my preparation to exams i read it but i am not confident where i read it and under which provision so i can't sure. Its just my opinion. Please wait for other experts reply.
20 September 2012
what is important is communication with previous auditor which is done by you. Now you have to take a call between believing in client and/or previous auditor. Find out the supportive evedence to strengthen the view of client and/or previous auditor. Bill raised by previous auditor, payments made for earlier years and so on etc.