StudentStudent asked 2 years ago

Question 26 (Pg 22.42)
XYZ Ltd. appoints you as the auditor of the company. You observe that previous auditors
A & Co., resigned. Also Balance Sheet as at 31-03-2016 shows an audit fee payable of
` 25,000. What precautions you will take before commencing the audit work?
In the solution, nothing is mentioned about Chapter VII of Council Guidelines wrt undisputed fees payable, is there any specific reason for non-mention?

1 Answers
RaviRavi Staff answered 2 years ago

they have given list of company act procedures and cl 8 & 9 reference 
they have not highlighted one more step, to ensure that undisputed fees is paid
so i agree one more point was required about fees