The Statutory Auditors can resign for different reasons viz. personal reasons, staff constraints, inadequate fees, dispute with the senior management, low or no good governance measures, extraordinary circumstances like pandemic, less coordination while auditing, fraud in company, etc.
Whatever the reasons be, the auditors should mention the same in their resignation letter. The resignation letter of the auditors is generally addressed to the Board of Directors or Audit Committee members of the company.
The resignation letter is to be printed on the letterhead of the auditors. Hereunder are few examples of such resignation letters of statutory auditors. Do modify as needed.
SAMPLE #1
(Personal Reasons)
To
The Board of Directors
........................ Limited
(Address)
Sub.: Resignation from the office of Statutory Auditor of the Company
Dear Sirs/Madams,
This is to inform you that due to my personal reasons, as I would like to devote more time to my family and my health, I am unable to continue as the Statutory Auditor of the company.
Accordingly, I submit my resignation from the office of the Statutory Auditor of the company with immediate effect.
I have no objection in the appointment of any other Auditor of the company.
Please accept my resignation and kindly acknowledge.
Thanking you,
Yours faithfully,
For ............... & Associates,
Chartered Accountants
FRN: ...................
(signature)
(Name of the CA)
Proprietor
Memb. No. ..............
Date: .................
Place: ................
SAMPLE #2
(Low Fees)
To
The Board of Directors
........................ Limited
(Address)
Sub.: Resignation from the office of Statutory Auditor of the Company
Dear Sirs/Madams,
Kindly refer to the discussions we had in the meeting held on (Date) and subsequent email correspondences on (Date) & (Date). As explained by you that owing to the present financial condition your company can offer a fee of Rs. .......... only for the financial year 20..-.. towards statutory audit and limited reviews.
Our fees for the said services for the previous financial year was Rs. ............. and this financial year it was supposed to increase to Rs. ............ as proposed to you earlier. The reduced fees proposal as requested by you will not be economically viable for us.
Therefore, we wish to inform you that we are hereby resigning as the statutory auditors of your company with effect from the conclusion of the ensuing Annual General Meeting of the company proposed to be held on (Date).
We thank the Management, the Board of Directors and other staff of the company for extending their support and cooperating with us in discharging our duties during the tenure of our association.
We wish the company success in all its endeavours.
Kindly acknowledge the receipt.
Thanking you,
Yours faithfully,
For .................... & Co.,
Chartered Accountants
FRN: ...................
(signature)
(Name of the CA)
Partner
Memb. No. ..............
Date: .................
Place: ................
SAMPLE #3
(Staff Constraints)
To
The Board of Directors
........................ Limited
(Address)
Sub.: Resignation from the office of Statutory Auditor of the Company
Dear Sirs/Madams,
This is to inform you that we are submitting our resignation as the Statutory Auditors of your company with immediate effect.
We are a medium-sized firm and are currently facing staff constraints due to internal reasons, therefore, we will not be able to continue as the Statutory Auditors of your company. Please note there are no other material reasons for our resignation.
We thank you for the support and cooperation extended during our association. We wish the company good luck and continued success.
Sincerely,
For ............... & Associates,
Chartered Accountants
FRN: ...................
(signature)
(Name of the CA)
Partner
Memb. No. ..............
Date: .................
Place: ................
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