Tax audit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2011 WE HAVE FULL TIME 3 PARTNER IN FIRM
WE MAY DO THE 135 TAX AUDIT
WE HAVE 1 HEAD OFFICE AND I BRANCH
CAN HEAD INCHARGE SIGN THE 100 TAX AUDIT

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2011 In order to ensure quality and equitable distribution of audit work done by Chartered Accountants, ICAI has fixed a maximum limit for the Tax audit assignments that can be taken by a CA or a firm of CAs. This limit is set at 45 assignments per person. For if a firm of CAs has 3 partners, the maximum number of Tax audits that can be taken up by the firm will be 45*3 i.e. 135. If the firm takes all the 135, partners cannot take any audit in their personal capacity. If a person is found to have accepted more than 45 assignments in a year, he would be deemed to have been involved in professional misconduct.

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2011 Of course any one partner can sign all the audit reports. But it should specially be mentioned that he is signing on behalf of the firm. This right arises out of the partnership act since any partner can act on behalf of other partners, subject agreement between partners.

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