Is NOC mandatory from first auditors

The first auditor can be removed without obtaining NOC in the GM.

And new auditor can be appointed in place of him.

Thankx

Dear Sir,

First understand it is not the duty of company to collect NOC from previous auditor. As per power given by first proviso to section 224(5), company can remove first auditor in the GM without previous approval of first auditor. However intimation should be send to the first auditor regarding the GM and his removal.

It is duty of the new auditor to collect NOC from previous auditor. You may suggest your new auditor to send their appointment intimation to the previous auditor along with asking for their NOC by registered post. If the previous auditor don’t release NOC and avoid sharing their objections then as per my opinion new auditor can resume your office.

It is advisable to maintain sufficient proof regarding the point that new auditor tried his best to communicate with previous auditor.

Regards

SPECIMEN OF INTIMATION LETTER BY THE NEW AUDITORS TO THE EXISTING AUDITORS FOR APPOINTMENT AND SEEKING THEIR NO OBJECTION LETTER

14th June, 2008

To,

M/s Agarwal & Co.,

Chartered Accountants

Kanpur (UP)

Sub: Appointment as the auditors of M/s Cipla Limited

Dear Sir,

We would like to inform that we have received a letter from Cipla Limited informing that the company at their annual general meeting held on 9th June, 2008 has appointed our firm as the Statutory Auditors of the company.

Being the retiring auditors, kindly give us your no objection letter to accept the assignment by us. In case if you have any observation or reservation, please inform us accordingly.

Thanking you,

Yours faithfully

M/s Subash & Co.

CHARTERED ACCOUNTANTS

PROPRIETOR

Even as per CODE OF ETHICS, auditor must collect NOC from retiring auditor !!! if he doesnot he would be guilty of professional misconduct !!!

if in case of tax audit, previous auditor raises any objection then what to do......?????