Regards communication to previous Concurrent auditor

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A newly appointed concurrent auditor for a PSB is unable to begin their work due to a dispute with the previous auditor, who is withholding a No Objection Certificate (NOC) over unsettled fees. Despite the bank urging the new auditor to commence, the previous auditor insists on resolving all issues first. The query seeks guidance on how to proceed, with conflicting advice suggesting NOCs aren't required for concurrent audits but also referencing professional ethics regarding communication with predecessors.

TAMILSELVI.M

TAMILSELVI.M (Querist)
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01 November 2021 I have been appointed as Concurrent auditor of a PSB on july2021. I have sent my acceptance to the branch. But I have not commenced my audit because previous auditor sent a letter to me that "how can you accept the audit without my NOC". I sent him an apologize that due to lockdown situation we cannot go to the branch and no information about previous auditor had been obtained from the branch side and I wish to inform here that there is a misunderstanding between branch head and auditor is already persistent s. Previous auditor fees was pending for more than 15months. Hence after receiving the letter from the previous auditor I have not commenced my audit yet. Now his fees are settled other than 2months bill. But still the previous auditor is creating a dispute against the branch and he repeatedly saying that I will not give NOC to you until all issues are resolved. But at the same time bank insists me to commence your audit otherwise we will blacklis you. My question is what should I do in this regard.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 November 2021 In case of concurrent audit no need to inform the previous auditor.
Any how you informed no need for NOC.
Commence your audit.

TAMILSELVI.M

TAMILSELVI.M (Querist)
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02 November 2021 Sir it is stated in the code of ethics, it is considered as professional misconduct if we didn't communicate with the previous auditor eventhough it is a Concurrent audit

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 November 2021 NOC is not required communication is enough. Case law given to you.

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