ADVANCE FEE BY AUDITOR

This query is : Resolved

devang doshi (Querist)
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11 March 2010 WHETHER CA CAN TAKE ADVANCE FEE FROM SAID COMPANY IN WHICH HE IS STATUTORY AUDITOR?

HERE THE QUETION IS OF ADVANCE FEE & NOT PROGRESIVE FEE, AS THE AUDITOR HAS NOT DONE ANY KIND OF WORK?

IF NO, THAN IS IT PROPOR?

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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11 March 2010 no. the auditor can not take advance from his client for the audit assignments , but for other assignments/consultancy work i think there is no such restrictions.

Rahul Gupta

Rahul Gupta (Expert)
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11 March 2010 Agreed. Auditor cannot take advance fees for the audit.
I am not 100& sure but my knowledge says that even for consultancy or any work the advance fees (exceeding Rs. 1000) cannot be taken WHILE YOU ARE AN AUDITOR of the company since as an auditor it will violate the regulations of appointment of auditor.
If NOT AN AUDITOR, then i think there is no problem for consultancy or other services.

Experts view solicited.

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