Forwarded query:
An Auditor has signed the financial statement of the Company A for 2021-22 and presented his report in April 2022.
After the said period in the month of July he has carried out valuation of the said Company A based on Unaudited Financial Statements for June 2022, for the purpose of its merger with Company B. He has presented his report to Company B.
However, there is strong possibility that the process of merger may take long time and until the Company get merged or otherwise, this Auditor will get appointed for further term of 5 years in Company A.
In such case whether the valuation done by the Auditor in this transition period (period between his signing of latest financial statements and his re-appointment), be considered as independent valuation? Whether proposed appointment is prejudicial to the term 'Independent' or not? Whether the Auditor can be considered as 'Independent' during this transition period, wherein his first 5 years have expired and he may be appointed for next 5 years, but yet not appointed?
Kindly help
valuerauditor
independence
