Transfer price audit

If there is a corresponding reduction in a scope of work then it is fine.

If not, it will come under the purview of professional ethics.

Thank You.

Last years Statutory Auditors XYZ & Co for a remuneration of Rs. 85000/- and TP Auditor ABC & Co for a remuneration of Rs. 75000/-.

For the Current Year Statutory Auditrs are Same XYZ & Co for a remuneration of Rs. 150000/-,. Can XYZ & Co accept the TP Audit Assignment for the Current year for a remuneration of Rs. 50000/- 

The transfer pricing audit fees should be commensurate to the quantum of transfer pricing transactions.

If there is a significant reduction in the quantum of transfer pricing transactions then the quotation of low fees is viable. But such reduction in the quantum of work should be permanent in nature.

For quoting a low fees there should be a clear indication that there is a reduction in quantun of TP transactions !

Or else this may be construed as soliciting of clienst by undercutting of fees !

Ok,

During the last year there are two diferent auditors and some Similar audit work/proceedures are carried out by both the auditors to draw there opinoin.

But, appointing a Single auditors in place of Two will avoid some duplicate work (similar work done by diferent auditors), Due to this we can fix Lower fee than Last year.

Please gothrough the attachement. and give your comment.

I think this goes in line with what I said, "Reduction in quantum of work"... just a different scenario !

But it will be an onus on the auditor to prove that the undercutting of fees was due to such reduction in quantum of work/duplicate work. Some relationship or justification needs to be shown !