Whetherto accept the audit or not

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This query is : Resolved

narender (Querist)

29 May 2013 Dear Friends

Can a Chartered Accountant accept the audit assignment at a lesser fees as comparison to fees paid to outgoing auditors???

will this amount to professional misconduct.

example :- a pvt ltd company is paying a sum of Rs 1,50,000 to the existing auditor but now company want to change their auditor at a lesser fees of 1,00,000 .

will this amount to prfessional misconduct

TKKKKKK

TKKKKKK (Expert)

29 May 2013 you should comply with minimum audit fees for professional. prescribed by icai..It is not comparable to previous auditor.

Pankaj Gupta

Pankaj Gupta (Expert)

29 May 2013 The notification with relation to minimum audit fees has been withdrawn by the council. The same is not effective now.
And for the matter of audit fees, It is a matter of discussion between the auditor and the client. The fees is decided based on the mutual discussion between the two parties. It is immaterial that the fees 100000 Rs is lower than that charged by the previous auditor. You are free to charge any amount of fees. There is no professional misconduct in the same.

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