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Procedure for removal of foreign auditors

Riddhi Jain (Chartered Accountant) (120 Points)

04 January 2012

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.......

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3 Replies

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 04 January 2012

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.

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