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Resignation Letter of Previous auditor

Nehu (CA) (115 Points)

05 August 2022

Before accepting tax audit assignment, is it necessary that I should obtain resignation letter of previous auditor??? Also do I need to communicate previous auditor in writing regarding my proposed appointment as an auditor???

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4 Replies

CA Sorav Gupta (Chartered Accountant) (1005 Points)
Replied 05 August 2022

Hi Neha

As per the professional code of Ethics issued by ICAI, you are required to communicate with the previous auditor and should obtain his NOC.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
ACA. Sorav Gupta
(Practicing Chartered Accountant)

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Nehu (CA) (115 Points)
Replied 05 August 2022

Dear Sir, previous auditor did tax audit for FY 20-21. However he did not gave any resignation letter till now. I will communicate to him as said by you. Is resignation letter must before communication???Can I commence audit without his resignation letter and just by communicating for getting noc??

CA Sorav Gupta (Chartered Accountant) (1005 Points)
Replied 05 August 2022

Neha, first sent an e-mail to the previous auditor. If he provides the NOC then go for the audit. If he does not give NOC because he has not received the tax audit fees then you cannot accept the assignment. Secondly, if there is any other reason and in your opinion, the previous auditor is not correct, then you can accept the assignment.

If no reply is received by e-mail, then send a letter to the address of the previous auditor with the Registered Acknowledgement Due.

In case of any further queries, kindly mail me at casoravgupta @ gmail.com

Thanks & Regards
ACA. Sorav Gupta
(Practicing Chartered Accountant)

Nehu (CA) (115 Points)
Replied 05 August 2022

Dear sir, I have read an article were it was written that letter seeking noc can be sent to previous auditor along with time period of reply(normally 7 days). Also the letter should mention that if no reply is received within mentioned time period than it will be deemed that previous auditor has no issue or objection to accept audit by new auditor. Is this correct??