Two copyable formats for the change-of-auditor exchange: the incoming auditor’s communication under Clause (8), and the previous auditor’s no-objection reply. First, the point most often missed: an NOC is not legally required. Clause (8) of Part I of the First Schedule to the Chartered Accountants Act requires the incoming auditor to communicate in writing before accepting and to hold positive evidence of delivery – then wait a reasonable time. Silence does not bar acceptance; unpaid undisputed fees do (Chapter IV, Guidelines on Ethical Issues, 2026). The generator adds the objection and fees-outstanding replies and the articleship-transfer consent letter.
Format 1 – incoming auditor’s communication to the previous auditor
Chartered Accountants
[Firm address]
[Previous auditor firm name]
Chartered Accountants
[Previous auditor address]
Dear Sir / Madam,
We have been offered appointment as statutory auditors of [Client name] for the financial year [FY], vide [reference of the offer – board resolution / letter and date]. Before accepting the appointment, and as required by Clause (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949, we write to ascertain from you, as the previous auditor holding this assignment, whether there are any professional or other reasons why we should not accept it.
In particular, we request you to let us know whether any undisputed audit fees for the assignment remain unpaid by the client – acceptance in that event being barred by Chapter IV of the Guidelines on Ethical Issues, 2026 issued by the Council, subject to the exceptions stated there.
We would appreciate a reply within a reasonable time. If we do not hear from you within such time, we shall presume that you have no objection and shall be free to proceed in the matter. Any information you share with us will be treated in strict professional confidence.
This letter is being sent by Registered / Speed Post with Acknowledgement Due, and the acknowledgment will be retained by us as evidence of delivery.
We thank you for your professional courtesy.
For [Firm name]
Chartered Accountants
Firm Registration No.: [FRN]
([Member name])
Partner
Membership No.: [M. No.]
Format 2 – previous auditor’s reply (no objection)
Chartered Accountants
[Firm address]
[Incoming auditor firm name]
Chartered Accountants
[Incoming auditor address]
Dear Sir / Madam,
We acknowledge receipt of your communication dated [date] regarding your proposed appointment as statutory auditors of [Client name] for the financial year [FY].
We have no professional or other objection to your accepting the appointment. Our undisputed fees for the assignment have been settled, and there is nothing further we need to bring to your notice.
We wish you a smooth engagement and remain available for any handover assistance the client may authorise.
For [Firm name]
Chartered Accountants
Firm Registration No.: [FRN]
([Member name])
Partner
Membership No.: [M. No.]
The Clause (8) essentials
| Point | Position |
|---|---|
| The duty | Communicate with the previous auditor in writing BEFORE accepting – the obligation is the communication and its proof, not a certificate of permission |
| Valid modes | Registered or Speed Post with Acknowledgement Due, hand delivery against written acknowledgment, or e-mail to the ICAI-registered or last known official address with acknowledgment. Certificate of posting, courier without acknowledgment, WhatsApp and SMS do not qualify |
| The wait | A reasonable time – 7 to 15 days by convention, nothing codified. After that, silence does not block acceptance |
| The real bar | Undisputed audit fees of the previous auditor left unpaid – Chapter IV of the Guidelines on Ethical Issues, 2026, with sick-unit and insolvency-resolution exceptions |
| Coverage | All audits – statutory, tax audit u/s 44AB, GST, internal, concurrent – wherever the previous incumbent is a chartered accountant |
| Skipping it | Non-communication is professional misconduct under Clause (8), disciplined even where the appointment itself was in order |
FAQs
Is a verbal no-objection from the previous auditor enough?
No. The obligation is written communication with positive evidence of delivery, and any reply worth relying on should be written too. A phone call satisfies courtesy, not Clause (8).
Is courier a valid mode of sending?
Only modes with positive proof of delivery qualify – RPAD or Speed Post with AD, hand delivery against acknowledgment, or e-mail with acknowledgment. A courier slip without the addressee’s acknowledgment has been treated as insufficient, as has a certificate of posting.
Is communication needed on my own reappointment?
No – the duty arises when a member accepts a position previously held by another chartered accountant. Your own reappointment to the same assignment involves no previous auditor to write to.
What if the previous auditor has died or surrendered practice?
Where there is genuinely no previous auditor to communicate with – death, or no tax audit conducted for the earlier year – the requirement cannot apply. Document the facts; where a firm continues after a partner’s death, write to the firm.
Does the fee bar apply if the fee is disputed?
The bar covers UNDISPUTED fees – a genuine, documented dispute takes the fee outside it. The 2026 Guidelines also define the fee to include applicable taxes and audit expenses, and except sick units and companies under insolvency resolution.
Do these formats work for internal and concurrent audits?
Yes – the Code applies the communication requirement to all types of audit. Pick the engagement in the generator and the subject line and body adapt; bank concurrent-audit empanelments often prescribe their own additional formalities, so check the bank’s terms too.
Method notes: this format is generated from the same drafting engine as the linked generator, against the standards and Council requirements as they stand in July 2026. All wording is original; nothing is reproduced from ICAI publications. Replace every highlighted placeholder, place the letter on the proper letterhead and have the signing person review each paragraph against the facts of the engagement. Reviewed by a practising CA; updated July 2026.