I want to know whether trusts, like companies, are also required to formally issue appointment letters to auditors? If yes, is it mandatory on their part to do so?
Sourav
4 Replies
Vikas
(CA)
(1135 Points)
Replied 21 September 2011
Actually, if the appointment is done for the first time, then the appointment letter is a must and communication is also required to be done with the previous auditor.
But it is not required to be received every year.
This compulsion is only in case of companies.
Sourav Modi
(Learner!)
(306 Points)
Replied 22 September 2011
Thnx Vikas for the info.
Since trusts are governed by Trust Act, can you cite specific section or provision where this madatory issuance of appointment letter is given in case of appointment is for the first time.
Further, in the case I am asking for, the previous auditor is no more and his firm is also not in existence anymore, so there is no issue of cummunication with him i guess. But the issue is that no proceeding had been done to appoint the new auditor i.e no appointment in the last AGM (or any other meeting) of the new auditor. So what proceeding should be done now to appoint the new auditor for audit of accounts of FY 2010-11?
It can also be noted in this regard that the new auditor is practising in his own name.
Sourav
Sourav Modi
(Learner!)
(306 Points)
Replied 22 September 2011
I forgot to mention one thing here is that the audit in question is Tax audit, not stat.
Further I came across the following link where it is mentioned the restrictions/requirements such as of communicating with the previous auditor does not apply in case of audit of accounts of charitable institutions.
https://wirc-icai.org/WIRC_REFERENCER/CA%20ACT%20&%20Regulations/CA%20Act%20&%20Regulations.htm
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