Tax audit

This query is : Resolved

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.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

26 July 2025 Here's a summary for your query about tax audit limits and signing authority in a firm with multiple partners and branches:

* **Audit Limits:**
ICAI limits tax audit assignments to **45 per partner per year**. So, for 3 partners, max assignments = 45 × 3 = **135** audits for the firm in total.
If the firm takes 135 audits, individual partners **cannot** take separate audits outside the firm (to avoid exceeding the individual limit).

* **Signing Audit Reports:**
Any partner, including the head in-charge, **can sign all audit reports** on behalf of the firm.
It must be clearly mentioned that the partner is signing **“on behalf of the firm.”**
This right is supported by the **Partnership Act**, which allows partners to act on behalf of the firm unless there's an agreement restricting this.

* **Branches:**
Even if there is a branch office, signing authority usually resides with the partner/head in-charge, unless specified otherwise by partnership agreement.

---

**So, in your case:**

* With 3 full-time partners, the firm can handle 135 tax audits in total.
* The head in-charge can sign the 100 tax audits for the firm, stating he is signing on behalf of the firm.

If you want, I can help draft the wording for the audit report signature line or partnership agreement clause. Would that help?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now