Under Cutting of Audit Fee in Case of Voluntary Resignation

[PANKAJ GROVER]

Dear Sir,

In case of voluntary resignation by a Statutory Auditors, can  new auditor accept the auditorship at lessor audit fee than the audit fees paid to resiging auditor?

Regards

RAPG & Co.

[Shrikant Gaonker]

 

If the Auditor has resigned on his own volition, the incoming auditor is free to chsrge any fees.

However, I feel , it is prudent on his part, if he gets clients details including fees from outgoing auditor  too.

AI Summary

Voluntary auditor resignation: incoming auditor may accept a lower audit fee but should obtain client fee details. Where a statutory auditor resigns voluntarily, the incoming auditor is free to set and accept any audit fee, including a lower fee than the resigning auditor charged, and it is prudent for the incoming auditor to obtain client details, including prior audit fees, from the outgoing auditor before accepting the engagement.