Nachiket PalsuleNachiket Palsule asked 5 months ago
1 Answers
RaviRavi Staff answered 5 months ago

if new auditor charges less fees for the same work which old auditor use to charge it is called undercutting.
I am changing my stand as given in our notes and lecture, after doing following research. NO question has been asked on it in past few years.
CA Act was amended in 2006 .Prior to amendment there were 13 clauses in Part I ,Schedule I . One of the clause specifically prohibited undercutting .But this clause was removed in amendment.So as of now undercutting is allowed . 
However ICAI planning to bring the clause relating to undercutting back in future.

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