Max. audit limit
(Guest)
14 Replies
SIVA KUMAR
(CA Final Student)
(98 Points)
Replied 01 August 2011
Section 224 (1B) : Section 224 (1B) places a ceiling on the number of audits of public companies which a Chartered Accountant not in full time employment, or a firm of Chartered Accountants, can conduct.
(a) A person can be appointed as an auditor, who is not in full-time employment elsewhere, of a maximum of 20 companies as described below
(b) Where some companies have paid-up capital of or more than 25 Lacs, a person can be appointed as auditor of only 20 companies out of which not more than 10 companies can have paid up capital of or exceeding Rs. 25 Lacs.
(c) In a firm of auditors, total number of 20 companies shall be for every partner of the firm who is not in full-time employment elsewhere.
As per the fourth proviso added to sub-section (1B) by the Companies (Amendment) Act, 2000, private companies have been excluded from the existing ceiling of 20 audits per partner and sub-ceiling of 10 audits for companies having a paid up capital of Rs. 25 Lacs or more. Thus, apart from 20 audits of public companies, an auditor may conduct audit of private companies without any ceiling.
Ashok J
(CA Final)
(880 Points)
Replied 01 August 2011
Do not get confused between normal audit (under companies act) and tax audit under IT act.
Sec 224 is only for audit of companies - For one CA max 30 companies (including pvt ltd out of which not more than 10 public ltd comp can have Share cap >25 lacs)
45 Tax audits for one CA - this includes ind,huf, firms, companies.
Ashok J
(CA Final)
(880 Points)
Replied 01 August 2011
Companies act says no ceiling limit on audit of pvt ltd companies but restiction is imposed by ICAI. So max - 30 companies including pvt ltd companies
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 01 August 2011
| Originally posted by : Ashok J | ||
 |
Do not get confused between normal audit (under companies act) and tax audit under IT act. Sec 224 is only for audit of companies - For one CA max 30 companies (including pvt ltd out of which not more than 10 public ltd comp can have Share cap >25 lacs) 45 Tax audits for one CA - this includes ind,huf, firms, companies. |
 |
AGREED .
Shrikant Subramanian
(Chartered Accountant)
(176 Points)
Replied 02 August 2011
1) Which section of which Act lays down the restriction that
a) only 45 tax audits for a CA
b) 30 Company Statuatory Audits ( maximmum of 20 Public comapnies of which max 10 Public co with more than 25 lacs as paid up capital + 10 private companies can be done)
2) Where is written that , though there is no restriction on auditing private companies as per section 224(IB) , maximmum 30 comapnies(Pub+ pvt) only can be audited .
3) Consider an example of CA , having 10 public companies with 25 lacs and and has offer from 25 more private comapnies. Then u mean he can accept only 20 offers.?????
arjun
(Article)
(51 Points)
Replied 02 August 2011
tax audit limit is increased from 30 to 45 from 11/05/2007
here is the link
(Guest)
thanks all ......the below mentioned answer is i found in icai compiliation of law...which is more aminent .........
| Originally posted by : Ashok J | ||
|
|
Companies act says no ceiling limit on audit of pvt ltd companies but restiction is imposed by ICAI. So max - 30 companies including pvt ltd companies |
|
prateek
(CA Final)
(355 Points)
Replied 02 August 2011
yar u r urself confused wid d same thing......u r talking about the TAX AUDIT LIMIT to be 45
but sec 224/228 of Companies Act deals with STATUTORY AUDIT OF COMPANIES.......hope u got my point
Ashok J
(CA Final)
(880 Points)
Replied 04 August 2011
Reply to Srikant's question
1.a Restriction (on tax audit) isnot under any act, but as per ICAI regulations.
b Restriction(on no of companies) is not under any act, but as per ICAI regulations.
2. Restriction(on no of companies) is not under any act, but as per ICAI regulations.
3. Yes
CMA Nanty Shah
(cost accountant in practice)
(28 Points)
Replied 17 May 2012
and what abt the limitws for cost auditor?
Dijo Mathew
(Chartered Accountant)
(28 Points)
Replied 23 May 2013
Dear all,
I have a doubt. I guess many would have the same.
The ICAI council guidelines says that in case of a firm of CA, the specified limits of tax audits shall be 45 audits per partner. ie a firm of 3 partnersin full time practice can contribute upto 135 tax audits (45*3).
But the same does not says that whether each of such 45 tax audit reports have to be signed by the respective partner or any partner can sign on behalf of the other. I have in practice seen many firms having 3 - 4 partners, but all the reports are signed by the one partner.
Please let me know wheher the above constitutes a violation.
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