Dear friends,
Query of Removal and Auditor
1) Mr. A an Auditor was appointed in ABC Private Limite as on 1993
2) Since 1993 he was only Auditor of the Company
3) Everything was going on smoothly since last 25 years however recently last few years Audtors services were not satisfactory and hence Company appointed Mr. P as Auditor of the Company.
4)Mr. P has not took NOC from Mr. A and signed financials on expectations that Company will provide him NoC to save time as on September Month where filing deadlines of Income Tax Returns were considered.
Now Mr. A raised two allegations
i) NoC not taken by Mr P and filed complaint with Institute of CA i.e. ICAI against Mr. P and Mr. P Received Letter from ICAI Committee
ii) Mr. A Auditor was filed letter against Company to RoC and RoC also sent letter to Company saying to follow up Sec 140 process for removal of an Auditor.
My question is
1) What further actions Compnay should take legally ?
2) Which issues removed Auditor can create further in future to Company ?
3) What risk company is having and which precautions they should be took ?
4) As Company is willing to pay genuine debt of and out going Auditor but as he is claiming false and exagorated amount how to stop him from doing same ?
Your expert views are most welcome.
With warm regards,
Pramod
7972422151
CAclubindia
