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Appointment & removal of auditor

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AJOY

SR. ACOUNTANT

26 Points Posted on 24 September 2012

Dear Seniors,

Our Company has removed and apoointed a new auditor for the F.Y.11-12. The outgoing audtior has communicated to the incoming auditor about professional fees due for F.Y.11-12. But the profeesioanl fees are very exhorbitant. The incoming auditor therefore can not sign the balance sheet. The outgoing auditor is also not ready to compromise on the fees part.. What can be done now. First returns has to be filed before 30th. Second we are not willing to pay such exhorbitant fees. Third the incoming auditor also can not sign the balance sheet for the F.Y.12-13 unless the outgoing auditors fees are cleared. Here one thing that I can mention is that fees relating to F.Y.10-11 is not pending. An early reply will highly be appreciated.

Regards,

Ajoy.

Replies (1)

CA Muthukrishnan Hariharan

Partner

36 Points Posted on 25 September 2012

The facts are:- 1. The removal of eisting Auditor. 2. A new Auditor was appointed. 3. The outgoing Auditor has written about his fees dues to the newly appointed auditor. Here the incoming Auditor must have waited forthe 'out going Auditors' no objection, then only shall have accepted the assingement. The time constrain is not a reason to accept the new assingment, and shall have opinion from ROC of the willingness to accept the new assingment, but the ethics involvement in Professional Ethics Guidelines, shall approach the ICAI on the part of accepting assignment at a lower fees! The appointment of an Auditor will be the duty of the Company, they have to solve the problem of outgoing Auditor, and allow only to commence the audit of accounts by newly appointed auditor on accepting the assignment.

Mr. Ajoy have to wait for the ''no objection' from the outgoing auditor. The filing on or before the due date with ROC is the duty of the Company.