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.
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”.