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Ethical Standards Board
The Institute of Chartered Accountants of India
7th September, 2021
Sub. : Continuing Audit in case of pending Fees of earlier year(s)

It has come to the notice of the Institute that certain messages are being circulated on social media and at other platforms that the continuing Auditor cannot sign the Audit Report if his professional fees from earlier years is pending.

In this regard, it is hereby clarified that the aforesaid position is NOT correct, and has NOT been circulated by the Institute.

The members may take note of the Announcement dt. 1.7.2020 on the Applicability of revised edition of Code of Ethics (making revised Code effective from 1.7.2020 except for certain deferred provisions) , appearing at the following link :-

In this regard, the provisions of ‘Fees- Overdue” , appearing in Volume-I of Code of Ethics, appearing at paragraphs 410.7 A1 to paragraph R410.8, and effective from 1.7.2020, may be referred. The safeguards mentioned therein are required to be taken by the Auditor. There is no bar on signing the Audit Report in these circumstances.

The FAQ at 205 of “FAQs on Ethical issues”, publication of Ethical Standards Board, may also be referred at the following link :-

The members may take note of this, and comply accordingly.

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