URGENT Please Help - CA's

Practise 1140 views 2 replies

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Suppose let us assume that there is a company called ABC & Co. And the company accounts are audited by XYZ Chartered Accounting Firm. ABC & Co is a Private Limited Company and is client of XYZ Firm for past 10yrs. ABC & Co now want to change the auditor because XYZ Firm is not giving valuable suggestions for developing the Company. Is it possible for ABC & Co to change the Auditor? If yes, then what is the procedure ? Will there be any problem in the future from the old Auditor ? Will the old Auditor leak company information to ABC & Co.'s competitors ??

Please explain me in detail.

Thank You

Replies (2)

Kshitij

PCC Student

125 Points Joined July 2008

To change internal auditor, only a resolution needs to be passed which would be voted as an agreement by majority of board members of the company. No big procedure is required. In case Stat Audit declaration to shareholders & creditors needs to be provided.