Communication to Previous Auditor:-
The first schedule (Part I) of The Cost and Works Accountants Act, 1959, deals with Professional
misconduct in relation to cost accountants in practice. This schedule provides that a cost accountant
in practice shall be deemed to be guilty of professional misconduct if he accepts a position as a cost
accountant previously held by another cost accountant in practice without fi rst communicating
him in writing.
The Institute of Cost and Works Accountants of India (ICWAI) has also opined in this regard that
communication means a letter addressed by the member who is appointed as cost accountant on
fee basis to the member previously holding the position of cost accountant in the same company.However, it may be added here that a categorical reply to said communication may not be essential
pre-requisite for the acceptance of the appointment. The ICWAI has also clarifi ed that the words
‘previously held’ imply any time previous to the offer of appointment to a new cost accountant.
The first schedule (Part I) of The Cost and Works Accountants Act, 1959, deals with Professional
misconduct in relation to cost accountants in practice. This schedule provides that a cost accountant
in practice shall be deemed to be guilty of professional misconduct if he accepts a position as a cost
accountant previously held by another cost accountant in practice without fi rst communicating
him in writing.
The Institute of Cost and Works Accountants of India (ICWAI) has also opined in this regard that
communication means a letter addressed by the member who is appointed as cost accountant on
fee basis to the member previously holding the position of cost accountant in the same company.However, it may be added here that a categorical reply to said communication may not be essential
pre-requisite for the acceptance of the appointment. The ICWAI has also clarifi ed that the words
‘previously held’ imply any time previous to the offer of appointment to a new cost accountant.
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