Communication to Previous Statutory Auditor

As a professional Chartered Accountant (CA) in India, communicating with the previous statutory auditor is a mandatory requirement under Clause (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949. Failure to do so constitutes professional misconduct.

Below is a standard draft you can use for this purpose.

Draft Letter of Communication

[Your Firm’s Letterhead]

Date: [Date]

To,

[Name of the Previous Auditor/Firm]

[Address of the Previous Auditor]

Subject: Professional Communication regarding appointment as Statutory Auditor of [Name of the Client Company] for the Financial Year [Year]

Dear Sir/Madam,

We have been approached by [Name of the Client Company] to act as their Statutory Auditor for the financial year ending [Date].

In accordance with the requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) and Clause (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949, we are writing to you to enquire whether there are any professional or other reasons for which we should not accept the said appointment.

We would be grateful if you could kindly provide your feedback or let us know if you have any objections to our accepting this assignment. Please note that if we do not receive any communication from you within 7 days from the receipt of this letter, we shall presume that you have no objection to our accepting the appointment.

We look forward to your response.

Yours faithfully,

For [Your Firm’s Name]

Chartered Accountants

[Signature]

[Name of Partner/Proprietor]

Membership No.: [Number]

Firm Registration No. (FRN): [Number]

Important Guidelines

• Mode of Delivery: This communication must be sent via Registered Post/Speed Post or Email (if you can ensure a delivery receipt). It is critical to maintain physical or digital proof of dispatch and delivery for your records.

• Timing: This must be done before you formally accept the audit assignment.

• No NOC Required: You do not necessarily need a "No Objection Certificate" (NOC); the requirement is to communicate and allow the previous auditor an opportunity to respond. If they do not respond within a reasonable time (typically 7–10 days), you may proceed after documenting your proof of communication.

• Documentation: Always retain a copy of this letter and the proof of delivery in your audit working paper file as evidence of compliance.

Summary

To comply with the Chartered Accountants Act, you must send a formal letter (via registered post or email) to the previous auditor before accepting an audit assignment. The letter should invite them to raise any professional objections. Retain proof of this communication for your records; if no response is received within 7 days, you may proceed with the appointment.