ATR-16                                                                                                                         ACCEPTANCE OF AUDIT ASSIGNMENTS BY NEW AUDITOR(S) WHEN AUDIT FEE OF EXISTING AUDITOR(S) IS OUTSTANDING

The issue Whether new auditor should accept the assignments in case the statutory audit fee of the retiring auditor is outstanding? The Technical Advisory Committee Recommendation A member of the Institute in practice shall be deemed to be guilty of professional misconduct, if he accepts the appointment as auditor of an entity in case the undisputed audit fee of another Chartered Accountant for carrying out the statutory audit under Companies Ordinance, 1984 or under other statutes has not been paid.Undisputed audit fee means the amount which has been agreed to and provided for in the financial statements. Members are, therefore, advised to keep the above directive of the Council in view while accepting new assignments of audit.

(145^th meeting of the Council - July 30, 2001)