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Communication with previous Auditor

Naina (CA Student) (477 Points)

10 February 2010

Is communication with previous auditor is must before taking up the audit, even in tax and internal audits?

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13 Replies

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 10 February 2010

yup

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CA Harish Suwalka (Chartered Accountant ( Bhilwara )) (4125 Points)
Replied 13 February 2010

yes it is compulsory

CA Pranjal Joshi (CA) (331 Points)
Replied 15 February 2010

Hi,

Communication with previous Auditor is must in all cases. Letter must be sent by Registered AD and other modes are not acceptable. In case where undisputed fees of the previous auditor are not paid then such assignment should not be accepted.

Pl. refer to recent CA Journal for last 3-4 months, in which ICAI is publishing FAQ's about "Know your ethics"

Ameet (L) (1678 Points)
Replied 16 February 2010

Communicationwith previous auditor is must. by Registered Psot.

CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)
Replied 18 February 2010

Yes.......

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Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 19 February 2010

Communication with previous auditor is must and failure to which shall amount to professional mis-conduct. It is compulsary even in case of Tax Audit. But it is not need in case of Internal Audit.

Naina (CA Student) (477 Points)
Replied 19 February 2010

So which one is correct?

CA. Pranjal or CA. Amol.

Sir, pls clarify.

Also if in a case, tax auditee comes in the Sep. end say 20 th Sept. and his previous auditor is out of state and so he won't be able to reply.

So what should be done in this case. Even if the new auditor will be sending Registered Post to the previous auditor, the later won't be able to reply.

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 19 February 2010

There is no need for immediate reply in Communication from Previous auditor. If the previous auditor doesnot reply within reasonable time, then it may be assumed that he has no objection. And also, one cannot wait for his reply for the no objection. If the current auditor has duly communicated, he has performed with his duties.

And in case of internal audit, there is no statutory obligation for the auditor to report to any third party. Also, the appointment is by the management itself. There is no need for communication with previous auditor. However, the auditor may communicate with the previous auditor for his own interest to know about the audit environment of the auditee.

This is my view. If there is any other view and if i m wrong, please correct me.

Shreya Aggarwal (Student) (125 Points)
Replied 06 September 2011

What is the reasonable time given to the previous auditor for reply?

devang (CA FINAL article ) (181 Points)
Replied 08 September 2011

please refer professional ethics topic from final book

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PRIYAMVADAPADMANABHAN (PROP) (29 Points)
Replied 11 March 2014

what about communication with the previous auditor in case of audit of professionals under section 44ab

is it compulsory

what is the consequence of non communication

who is in charge of working papers in this case

VEMULA NAGARAJU (Chartered Accountant) (138 Points)
Replied 08 July 2017

Hi All,

If previous auditor does not respond for few months either in writing or oral by calls, depsite sent communocation by registered post, e-mails and SMSs, can we accept statutory audit of Private Limited company who have removed the auditor as per the Company law regulations.

Divyesh Dankhara (CA Practice) (22 Points)
Replied 09 September 2018

Is it compulsory to communicate to previous auditor if last audit was conducted in F.Y.-2010-11 by another Chartered Accountant u/s 44AB, and I am accepting audit assignment for F.Y.-2017-18???