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Tax audit

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Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2011 Whether it is mandatory to do communication with the previous tax auditors to obtain NOC from previous auditors.
If NOC not received from previous auditor, then what will be the effects.

Please help me out

ca cs shriyans jain

ca cs shriyans jain (Expert)

05 September 2011 Its not NOC is just intimation to the previous auditor

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)

06 September 2011 It is mandatory to communicate with the previous auditor in writing & wait for reasonable period of time for receiving the objection from previous auditor.

New auditor can proceed to conduct the audit if the previous auditor not respond in reasonable time.

However reasonable time period is noever defined, one may wait for one week time period for objection.

If no communication to previous auditor then it will come under professional misconduct and the new auditor will be liable for disciplinary action.

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