Audit fee

This query is : Resolved

BHASKAR AUDDY (Querist)
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30 October 2010 X &Co., a chartered accountants firm has been appointed as a statutory auidtor for ABC & Co. Ltd for the financial year 2010-11 at the auidt fee of Rs.30000/-.

Previuos auditor Y & Co.,has been getting audit fee of Rs.50000/-.

Can X & Co. accept the assignment for the FY 2010-11?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 October 2010 Yes now he can accept as the rule for not accepting assignment at a fees lower than what was paid to the previous auditor has been removed.

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CA Navin Jain

CA Navin Jain (Expert)
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30 October 2010 I think X & CO, CAN NOT ACCEPT

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 October 2010 Aditya Ji, may I request you to provide the relevant notification of ICAI in this regard.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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30 October 2010 Substituted by the Chartered Accountants (Amendment) Act, 2006 and came into force w.e.f. 17.11.2006

The point for undercutting has been removed in the new schedule.

Visit this link where the point for undercutting has been removed

http://www.mca.gov.in/Ministry/actsbills/pdf/The_Chartered_Accountants_Act_2006.pdf

and

http://www.icai.org/post.html?post_id=276&c_id=218

It was there in the old first schedule given here
http://www.icai.org/post.html?post_id=735
clause (12) in the old one.

In case of any further details required or confusion in the same feel free to ask for the same.