The ICAI is implanting various changes in this month to maintain the operations smoothly and in the lineup of changes, ICAI permitted E-Mail as a communication mode for communicating with the Retiring Auditor.
The ICAI which stands for the Institute of Chartered Accountants of India, It was established in 1949 as a statutory body under the Chartered Accountants Act, 1949 and it is the national professional accounting body of India. ICAI recently issued a statement and permitted the communication through E-Mail with the Retiring Auditor.
In the same statement, ICAI stated that the members have raised concerns that due to the back to back lockdowns communication with a Retiring Auditor through the permissible communication modes in terms of provisions of Code of Ethics is not possible for the Incoming Auditor.
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The current or existing Code of Ethics, 2009, provides, under commentary to Clause (8) of Part-I of First Schedule to The Chartered Accountants Act, 1949 as below:-
“Members should, therefore, communicate with a retiring auditor in such a manner as to retain in their hand’s 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.”
The ICAI in it clarifies that “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”.
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