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Mahesh GuptaMahesh Gupta asked 3 months ago

Sir, have a doubt in professional ethics being for the clause 8 prior approval from previous auditor it is stated that we should confirm that the previous audit fees was paid off, so in a case if the prior auditor have Rs.2L pending out which 1L pertains to audit fees and other 1L to consultancy. Are we allowed to accept the new auditor position if only 1L pertaining to consultancy of the previous auditor is pending?

1 Answers
RaviRavi Staff answered 3 months ago

Clause 8 is applicable to all the types of audit, so communication is mandatory for all types of audits.
Clarification with respect to undisputed audit fees is given in council general guidelines 2008, they have specified that we should see only company audit fees and audits which are covered under other laws.
From above it is clear that we are not concerned with pending consultancy charges.

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