As per clarification given by CA Institute, internal auditor can not be tax auditor for the Asst Year 2010 onwards-
I require clarification for the following issue:
A Ltd and B Ltd are under the same group-A Ltd has appointed Mr X as internal auditor-Can Mr X can be a tax auditor of B Ltd.
Kindly clarify
regards
Joseph David
Hi,
As per my knowledge, every company is treated as different assessee. Therefore, A Ltd and B Ltd are different assessees. As a result, same auditor can be an internal auditor for A Ltd, and tax auditor for B Ltd.
Please give feedback if my opinion is wrong. Thank you
Dear Joseph and bharath,
I think the logic behind introduction of the clarification given by ICAI is to maintain in dependence of auditors.
As per my opinion you should avoid appointment Mr. X as Tax auditor of B limited to prevent any head on clash in future. Due to Satyam effect ICAI is very strict to these kind of issues.
On the other hand Bharath is quite right but you should avoid. Further views are welcome. Regards
Boutique Investment Bank & Transaction Advisory Firm
Gurgaon
CA
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