No. of income tax audits above 45: audit valid?

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yashsr (Querist)

13 October 2012 Hello,

A Proprietor whose turnover was Rs.5 Crores got its Accounts audited by a Chartered Accountant whose no. of Income Tax Audits signed crossed 45. Now, ICAI has found out and is taking action against the Chartered Accountant. Can the Proprietor be under any fault i.e. will it affect the genuiness of the Tax Audit or will only the CA be under the hammer?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

13 October 2012 Only CA will be the liable because client doesn't knows about his limit etc...

OM SAI SRI SAI JAI JAI SAI

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Ronak

Ronak (Expert)

23 June 2014 Dintakurthi Sir, As before the start of assignment in statutory audit, the client is also liable to take the undertaking from the auditor regarding the no. of assignments. Isnt there any such provisions regarding tax audit.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

23 June 2014 According to the provisions of the Companies act an auditor shall give certificate about his qualifications and disqualifications to appoint as an auditor to such company, and in such case also company only depending and reliable on the auditor's certificate only but it not investigate about is the auditor's certificate is true/false, so full liability is only depending and wholly of Chartered accountant.

For other than companies there is no such like above provision in Tax audit(taking of certificate about qualification of auditor to conduct tax audit),even as well knowledge of client he get certificate from CA for his qualification and disqualification then the clients duty is depending on reliable on auditor's certificate but he not investigate on it about true/false. so it is only responsibility of Chartered accountant, as well as as per my view only combination of ICAI and IT department shall find out is auditor exceeded or not his tax audit limits?

So my view due to the false statement of auditor(Because of he only knows about his tax audit cases,since he not disclose his clients list to others) the client shall not liable.

OM SAI SRI SAI JAI JAI SAI

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