Communication with the Retiring Auditor through E-mail | ICAI

Professional ethics requires an incoming auditor has to communicate with retiring auditors about his appointment and best practices involves obtaining No objection certificate from retiring auditors. however in today’s environment where entire world locked down due Covid-19 pandemic.

The Institute of Chartered Accountants of India (ICAI or Institute) on Friday 1st May, 2020 has announced email communication from retiring auditor is valid in following manner.

It has been decided  by the institute that members may communicate with the retiring auditor via email. acknowledgement of communication has to received from the retiring auditor and  such acknowledgement has to be received from the email address which is registered with the institute or last known official email address.

Communication with the Retiring Auditor through E-mail | ICAI Share on X

Therefore from the above it can be inferred that communication with retiring auditor shall be deemed as valid only if acknowledgement is received via registered or last known email address of retiring audit.

That such email communication with retiring auditor shall be deemed as valid evidence of positive delivery of communication . 

Full text of the Announcement

“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. “