Reasons for resignation of Auditors

Reasons for Resignation or removal of Auditors from the company

1. Inability to execute work undertaken due to pre-occupations

2. Having ill health of auditor or any urgent medical Emergency

3. Having lesser staff or resignation of any key personnel

4. Dispute with client company,

5. Inability to continue audit due to surpassing the ceiling on number of audits etc.

6. Auditors came to know about serious mismanagement or embezzlement of funds by M.D. or any senior officer and then was forced to keep silence on the matter,

7. Hiding of information that can have a material impact on the accounts,

8. There are also cases where auditors resigned from their assignment citing reputational risk.

9. Code of ethics:  Code of Ethics requires an auditor to consider resigning from an engagement when it is concluded that a requirement established by the Code of Ethics cannot be met and hence resignation is the only available alternative,

Just for thought

# In the decade of 2000 when auditors were in doubt, they use to disclose it in the notes to accounts.

# In the next decade, whenever they were in doubt, they use to qualify the audit report.

# in this decade, when auditors are in doubt, they RESIGN