1. CODE OF ETHICS Cases & Issues of Unjustified Removal of Auditors:
Independence of Auditors

2. Unjustified Removal of Auditors
Section 224 – Appointment & Remuneration of Auditor
Section 224A – Auditor not to appointed except with the approval of the company by special resolution in certain cases.
Section 225 – Provisions as to resolutions for appointing or removing auditors
Clause (8)&(9) Part I of Schedule I of CA Act,1949

3. Relationship with Other Members in Practice
Communication with outgoing Auditor in case of change of auditor
Compliance with the requirement of section 224, 224A & 225 of the Companies Act, 1956

4. Communication with outgoing Auditor in case of change of auditor
Non-compliance of the Provisions of Section 224, 224A & 225 of the Companies act, 1956
Undercutting of Fees
Non-payment of undisputed audit fees
Issuance of a qualified report

5. Compliance with the requirement of Sec
Compliance with the requirement of Sec. 224, 224A & 225 of the Companies Act
To ensure that the outgoing is properly removed
That the guidelines prescribed by the Institute have been complied with
To ensure that the incoming auditor is properly appointed.

6. Independence of Mind Independence in Appearance

7. Independence Should be Exhibited in
Objectivity
Integrity
Professional Services

8. Threats of Independence
Self - Interest Threat
Advocacy Threat
Familiarity Threat
Intimidation Threat
Self Review Threat

9. Safeguards
Safeguards Created by the Profession, Legislation or Regulation
Safeguards within the Assurance Client
Safeguards within the Firm/s own Systems & Procedures

10. Safeguards Created by the Profession, Legislation or Regulation
Education, Training & Experience
Continuing Education Requirements
Professional Standards & Disciplinary Processes.
External Review of Firms Quality Control System.
Legislation Governing Independence

11. Safeguards within the Assurance Client
Competent Employees to make Managerial Decisions.
Policies and Procedures for fair Financial Reporting.
Internal Procedures
Corporate Governance Structure

12. Safeguards within the Firms own Systems & Procedures
Firm Leadership
Policies & Procedures for Quality Control
Documented Independence regarding Identification of threats and Application of Safeguards.
Disciplinary Mechanism

13. Objective & Structure Identifying Threats to Independence
Evaluating the Threats
Applying appropriate Safeguards to eliminate or reduce the threats.

14. Public Interest Public Consists of
Clients
Credit Granters
Government
Employers
Employees
Investors
Business
Financial Community

15. Objectives
Credibility
Professionalism
Quality of Services
Confidence

16. Fundamental Principles
Integrity
Objectivity
Professional Competence and Due Care
Confidentiality
Professional Behavior
Technical Standards.

17. THANKING YOU