A foreign company in India has approached us to be appointed as their Statutory Auditors.
Previously they had Foreign Auditors.
can you pls help me with the procedure for their removal and for our Appointment?
Also, do we need to communicate them as per Company law as they will become the previous Auditors?
Also wat is the fee Structure that can be Charged?
Can we charge lower fees than the previous Auditors as regards to the code of Ethics issued by ICAI?
Please help.......
Ans1
Procedure for removal of any auditor for companies to whom companies act,1956 is applicable is same wther they are indian or not only thing is dat foriegn auditors are also governed by their respective countries law.
Ans2
Yes communication and all the applicable provisions of companies act in relation to auditors under companies act 1956 is applicable. It is better to communicate wit such outgoing auditors for the reason to let the audit.
Ans3
Fees structure should be decided depending upon the factors lik size of the company in terms of capital and nature of working of the company, Previous payments made by suc company to foriegn company etc.
Ans 4
Lower fees cannot be charged by ur firm as provided by ICAI becos thos are min charges to be recived by members for doing the attest funstion of auditing.
thanks a lot Tushar Sir...
and wat if the company is a foreign company outside india what will be the implications for the above questions
In case if its registerd outside india den company law of dat country has to be analysed in respect of auditors.
CAclubindia
