Auditor's lien

This query is : Open

Manik (Querist)
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23 January 2015 Can an auditor exercise right of lien on the books of accounts of a company for non payment of his fees?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 January 2015 Yes. The auditor can exercise his lien on client’s books and records subject to the following conditions:

(a) Document retained must belong to the client who owes the money.

(b) Such documents must have come into auditor’s possession with the client’s
authority.

(c) Some work must have been done and fees for work performed must be outstanding.

Manik

Manik (Querist)
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23 January 2015 But a company needs to keep it's books at the registered office.

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