Page 388 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Methods of Communication Allowed.
Communication Requirement: Members should communicate with a retiring auditor in a way that provides
positive evidence of the delivery of the communication.
Methods: The Council suggests several methods for obtaining such evidence:
1.Hand Delivery: Delivering the communication by hand and obtaining a written acknowledgement.
2.RPAD: Sending a letter through "Registered Post Acknowledgement due".
3.Email Acknowledgement: Receiving an acknowledgement of the communication from the retiring auditor's
ICAI registered email address or last known official email address.
4.UDIN: Through UDIN portal, subject to separate guidelines issued by the Council.
Special Circumstances
Office Found Locked: If the Incoming Auditor receives a communication with the message "Office found
Locked" on the Acknowledgement Due, it will be considered as delivered to the retiring auditor.
No such office exists at this address: If the Incoming Auditor sends a communication and receives it back with
the remark "No such office exists at this address," and the address used is the same as registered with the Institute,
the letter will be considered delivered unless the retiring auditor can prove that it was not served and that they
were not responsible for the non-service.
Special Audit Under Income Tax Act
The Council has also laid down the detailed guidelines on the subject as under: -
Special audits: Tax Auditors are appointed for conducting special audits under the Income Tax Act, 1961.
Communication: It's a healthy practice for these Tax Auditors to communicate with the members who have
conducted the Statutory Audit. (That means it is recommendatory) This communication can enhance the
efficiency and effectiveness of the audit process.
Applicability
All types of Audits: Communication with the previous auditor is a requirement across all types of audits. This
includes Statutory Audit, Tax Audit, GST Audit, Internal Audit, Concurrent Audit, and any other kind of audit.
Chartered Accountant: The previous auditor to be communicated with is a practicing Chartered Accountant.
Other Professionals
Mandatory Communication: Communication is required for all types of Audit/Report where the previous
auditor is a Chartered Accountant.
Other Professionals: In case of assignments done by other professionals not being Chartered Accountants,
communication is still recommended.
Healthy Practice: This communication is considered a healthy practice, enhancing the effectiveness of the audit
process.
Government Audits
Uniform Requirement: Communication with the previous Chartered Accountant auditor is a mandatory
requirement for both government and non-government audits. In audits of government companies, banks, or
their branches, if there is sufficient time, the communication should be done before accepting the audit.
Time Constraints: If the time schedule for the assignment doesn't allow for waiting for a reply, the incoming
auditor can conditionally accept the appointment and start work. The incoming auditor's acceptance letter
should state that it is subject to any professional objections from the previous auditors.
Final Acceptance: The final acceptance will be decided after considering the information received from the
previous auditor.

(CNO-PE.1240) CL 9 - Bare Text
Clause (9) accepts an appointment as auditor of a company without first ascertaining from it whether the
requirements of Section 225 of the Companies Act, 1956 (1 of 1956), in respect of such appointment have been
duly complied with;
Requirements of Companies Act, 2013
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