16 November 2014
Should we take NOC from previous auditor under CA Act before giving consent to company for appointment, because now acceptance after appointment is replaced by consent before appointment.
17 November 2014
New auditor is required to take NOC as per Clause 8 of Part 1 of Schedule 1 of Chartered Accoutancy Act. This is because if the undisputed fees of the previous auditor is not paid to him than no auditor can accept the audit of the company. If there is no such reason than the new auditor can accept the audit even without getting the NOC from the previous auditor. But care should be taken that the new auditor must communicate with the previous auditor by Registered Post and must have the receipt with him because non compliance of CA Act would result into misconduct by the new auditor and even his degree can be on stake.
CAclubindia
