Under Code of Ethics for practicing Chartered Accountants, a CA has to seek No Objection Certificate from previous Auditor before accepting appointment as auditor of any entity. This includes statutory audit, tax audit under Income Tax Act and also GST audit under CGST Act.
My query is whether this requirement also applies to audit of bank borrowers (Stock Audits) as per audits allotted by regional/ zonal offices of the banks. This is because each such appointment is meant to be only one time assignment after which, it is understood that a different auditor will carry out the said stock audit the next year.
Also, please clarify whether this requirement should apply to certificates being issued by practicing CA's (such as 15CB certificates, etc.) where companies may want to obtain certificates from a different firm in which case, whether the newly appointed firm should seek NOC from previous firm issuing such certificates.
Thank you in advance.
CAclubindia
