The Reader

We are pleased to work as statutory auditors of insurance XX region DOXX and a branch attached as usual this DO during the audit period will be recording claims worth Rs.XX Crores and collecting premium worth Rs.XX crores  the salary cost will be around Rs.XX crores and Rs.XX crores as other expenses  result will be detrimental to the intrest of the company.

As usual we point out that this kind of company requires minimum internal check and external check consisting 30 mandays of a chartered accountant and 60 mandays of assistant. This will require internal and statutory audit fees of Rs.3,00,000 at the standard rates.

Our representation to increase the quality and periodicity of intrenal audit before statutory audit and increase in fees as per scale recommended by Institute and time required as per time that this assignment requires. We are nearly reaching to the conclusion that Your management is delibrately keeping this expenses low despite clearcut instructions to calculate fees properly based on manhours as required by C&AG in the appointment letter. In this situation management should be treated as party to support the bleeding of PSUs by reducing the expenses at unwarranted place and is doing armtwisting with chartered accountants so that they cannot do justice with the work . One thing is sure we  cannot refuse this work as part of our social commitments and also as  otherwise C&AG may blacklist us .

This mail is for your information and our audit evidence