Acceptance of audit without NOC

[Gyanesh Pandey]

We have resigned as auditor of a private limited company. The company has appointed new auditor who has communicated with us. Now the company is not paying our audit fee (duly recognised in latest audited balance sheet)

We have issued notice to new auditor for accepting the audit without communication with us. But he does not bother to reply within the given time.

Please let me know what options are available now.

Rgd

[lcoch...@gmail.com]

It is most unfortunate that our own professional brothers the ground rules of communicating with previous auditors before accepting the work. If you still want fee, you can make complaint to ICAI on this. You have to decide on this. Pl note that because of this only the clients feel they can do anything

Sent from my ASUS

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[RAJENDRANATH BHAR]

SAME PROBLEM HAPPENED TO US TO SANIPLUCOM INDIA (P) LTD & COLLEGE STREET PIPE MERCHANTS ASSOCIATIONS (P) LTD. THESE ARE ARE CHEATERS COMPANY NOT PAYING AUDIT FEES AND APPOINTING NEW AUDITORS.

[rk sonthalia]

Complain to Institute if he has not informed you.

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From: foru...@googlegroups.com <foru...@googlegroups.com> on behalf of Gyanesh Pandey <gp5...@gmail.com>
Sent: Tuesday, October 10, 2017 11:38 PM

To: forum4ca
Subject: [CA RUNGTA PD] Acceptance of audit without NOC

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[Deelip Kumar Choudhury]

Since he has accepted after you resigned, informing you is a formality. Not informing you may be illegal but not immoral.

Now in stead of insisting him to reply ask him to help you recover your fees which I hope in all probability he will cooperate.

Last step.....you can write to ICAI.

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CA.D.K.Choudhury

11, Samant Vihar,
NALCO Square,
Bhubaneswar - 751 017

[Hemant Kumar Bijlani]

Dear Gyanesh,

I would like to drawn your attention to Question no. 52 & 53 of FAQ on Ethical Issues.

Q: Whether a Chartered Accountant in practice can accept audit in case the audit fee of the previous auditor remains unpaid.

A: No, in case the undisputed audit fees for carrying out the statutory audit under the Companies Act, 1956 or various other statutes have

not been paid, the incoming auditor should not accept the appointment unless such fees are paid. In respect of other dues, the incoming

auditor should in appropriate circumstances use his influence in favour of his predecessor to have the dispute as regards the fees settled.

The Council has taken the view that the provisions of audit fee made in accounts signed by both the auditor and the auditee shall be

considered as 'undisputed' audit fees. In this connection, attention of members is invited to the Council General Guidelines, 2008 dated

08.08.2008.

Q. Whether a Chartered Accountant in practice can accept a position as auditor previously held by another Chartered Accountant without first communicating with him in writing?

A. No, a Chartered Accountant in practice cannot accept a position as auditor previously held by another Chartered Accountant without first

communicating with him in writing. It will be in violation of Clause (8) of Part I of First Schedule to the Act.

Hope these will be useful for you in figuring out your options.

Thanks & Regards

Hemant Kumar Bijlani

Mobile: +91 (0) 98 1898 5070
Email: heman...@icai.org; heman...@gmail.com

Kumar Hemant & Co., Chartered Accountants

C-28, Lower Ground Floor,
Acharya Niketan Market,

Mayur Vihar - I, Delhi – 110091

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[Ns Rajan]

Dear CA Pandey

The requirement for communicating with the previous auditor would apply to all types of audits viz., statutory audit, tax audit, internal audit, concurrent audit or any other kind of audit. The Council has laid down detailed guidelines in this regard and the same are appearing at pages 166-168 of Code of Ethics, 2009.

You are stating that the new auditor has communicated with you. If he has communicated to you in writing 

then state your objection to his appointment  on the ground that your audit fees of previous has not been paid

regards

On Tue, Oct 10, 2017 at 11:38 PM, Gyanesh Pandey <gp5...@gmail.com> wrote:

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C.A.  N.Sundara Rajan

[Pankaj Agrwal]

The incoming auditor has misconducted himself. Please see the following Council guidelines given as an appendix to Guidance note to tax audit.

 

Chapter VII

Appointment of an Auditor in case of non-payment of undisputed fees

7.0 A member of the Institute in practice shall not accept the appointment as auditor of an entity in case the undisputed audit fee of another Chartered

Accountant for carrying out the statutory audit under the Companies Act, 1956 or various other statutes has not been paid:

Provided that in the case of sick unit, the above prohibition of acceptance shall not apply.

7.1 Explanation 1:

For this purpose, the provision for audit fee in accounts signed by both – the auditee and the auditor shall be considered as “undisputed” audit fee.

7.2 Explanation 2:

For this purpose, “sick unit” shall mean where the net worth is negative.

 

Thanks

 

CA. Pankaj Agrwal

225 Tej Kumar Plaza, Hazratganj,

Lucknow 226001

Phones: 0522-4009167

pan...@mgcoca.com; agrwal...@icai.org

agrwal...@gmail.com

 

From: foru...@googlegroups.com [mailto:foru...@googlegroups.com] On Behalf Of Deelip Kumar Choudhury
Sent: Wednesday, October 11, 2017 2:37 PM
To: foru...@googlegroups.com
Subject: Re: [CA RUNGTA PD] Acceptance of audit without NOC

 

Since he has accepted after you resigned, informing you is a formality. Not informing you may be illegal but not immoral.

 

Now in stead of insisting him to reply ask him to help you recover your fees which I hope in all probability he will cooperate.

 

Last step.....you can write to ICAI.

On 10 October 2017 at 23:38, Gyanesh Pandey <gp5...@gmail.com> wrote:

We have resigned as auditor of a private limited company. The company has appointed new auditor who has communicated with us. Now the company is not paying our audit fee (duly recognised in latest audited balance sheet)

 

We have issued notice to new auditor for accepting the audit without communication with us. But he does not bother to reply within the given time.

 

Please let me know what options are available now.

 

Rgd

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CA.D.K.Choudhury

11, Samant Vihar,
NALCO Square,
Bhubaneswar - 751 017

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[vinod goyal]

Since rotation in listed co after 10 +3 yrs became compulsory and specified so in notice for agm,does incumbent obliged to communicate?

Sent from yahoomail on Android
Vinod Kumar Goyal,
F.C.A.P.G.D in A.D.R. 
Ex-Director: A.N.M.I.,National Board
Director: V .G .Capital Market Pvt Ltd
EX-chairman:H.P.L.A.
Sr.Partner:V.Goyal&Associates

[Ns Rajan]

Please mark a copy of the trailing email to the new auditor which

should make him aware of  morals and ethics

regards

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C.A.  N.Sundara Rajan

[Gyanesh Pandey]

Dear Sir

New auditor did not communicate with us. However we wrote a letter on our own informing him about these lapses and showing causes for not filing a complaint with ICAI. He has not replied to my show cause notice.

Pla dvise

On Thursday, 12 October 2017 11:43:45 UTC+5:30, Ns Rajan wrote:

Dear CA Pandey

The requirement for communicating with the previous auditor would apply to all types of audits viz., statutory audit, tax audit, internal audit, concurrent audit or any other kind of audit. The Council has laid down detailed guidelines in this regard and the same are appearing at pages 166-168 of Code of Ethics, 2009.

You are stating that the new auditor has communicated with you. If he has communicated to you in writing 

then state your objection to his appointment  on the ground that your audit fees of previous has not been paid

regards

On Tue, Oct 10, 2017 at 11:38 PM, Gyanesh Pandey <gp5...@gmail.com> wrote:

We have resigned as auditor of a private limited company. The company has appointed new auditor who has communicated with us. Now the company is not paying our audit fee (duly recognised in latest audited balance sheet)

We have issued notice to new auditor for accepting the audit without communication with us. But he does not bother to reply within the given time.

Please let me know what options are available now.

Rgd

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C.A.  N.Sundara Rajan