ICAI

ICAI relaxes requirement of communication with retiring Auditor in terms of Code of Ethics

Incoming auditor may communicate with retiring Auditor vide E-mail due to lockdown. Acknowledgement of communication to be valid in terms of Code of Ethics

ICAI relaxes  requirement of communication with retiring Auditor

ICAI Announcement dated 01.05.2020

Communication with the Retiring Auditor through E-mail

The members have raised concerns that during the period of ongoing lockdown, it is not possible for the Incoming Auditor to communicate with the Retiring Auditor through the mode(s) of communication permissible in terms of provisions of Code of Ethics.

The existing Code of Ethics, 2009 , provides, under commentary to Clause (8) of Part-I of First Schedule to The Chartered Accountants Act, 1949 as under :-

“Members should therefore communicate with a retiring auditor in such a manner as to retain in their hands positive evidence of the delivery of the communication to the addressee. In the opinion of the Council, communication by a letter sent “Registered Acknowledgement due” or by hand against a written acknowledgement would in the normal course provide such evidence.”

Due to the existing constraint of communication through above mentioned modes, it has been decided that the members may communicate with the Retiring Auditor vide E-mail, provided an acknowledgement of such communication is received from the Retiring Auditor’s E-mail address registered with the Institute or his last known official E-mail address. Such acknowledgement of communication would be deemed as valid evidence of positive delivery of communication

Also Read:

There is no requirement to obtain NOC from previous auditor under CA Act 1949- High Court Click Here >>

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