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Maximum tax audit assignments that a CA can accept

Sindhuja (Articled Assistant) (36 Points)

20 March 2011

1. Maximum no of company audits that a CA can undertake u/s.224(1B)?

2. Maximum no of tax audits that can b undertaken as per the council of ICAI?

3. Does sec.224(1B) applies only to public companies, I heard that private companies are not counted for this sec, is that so?

4. Of these how many can b companies having paid up capital of more than 25 lacs?

Plz make me clear friends

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Section 224 (1B) of the Companies Act,1956 specifies the number of audits of public companies which a Chartered Accountant not in full time employment, or a firm of Chartered Accountants, can conduct which is as follows:
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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:
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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 25 Lacs.
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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 of25 Lacs or more. Thus, apart from 20 audits of public companies, an auditor may conduct audit of private companies without any ceiling.
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As per Income tax Act, 1961, maximum number of tax Audits is 45.
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Expert Answer By CA B.Chackrapani Warrier, Most Effective Expert
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2.maximum 45 tax audits

for other quetions read this forum-

/forum/limit-on-number-of-audits-62328.asp

CA priyesh jain (NA) (60 Points)
Replied 20 March 2011

as far as your query regarding exclusion of private companies from max. number of tax audits is concerned,

it is true because private co. is granted exemption in this regard,,,

Sindhuja (Articled Assistant) (36 Points)
Replied 20 March 2011

Thanks a lot Deepak

Sindhuja (Articled Assistant) (36 Points)
Replied 20 March 2011

Thanks Pavan & Thanks Jain

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 20 March 2011

agree with deepak gupta.........

gaurang (student ca) (46 Points)
Replied 21 March 2011

according to icai guidelines a ca ca accept max 30 audits incl. pvt companies..

but i guess i has been increased to 45 now...plz check dat

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 21 March 2011

Dear,

The ceiling as per companies act differs vis a vis the restrictions as per CA regulations... as per co. act the above mentioned statements are correct but as per CA regulations the overall cap of 45 audit is there and the restriction of 10 pub. co. with specified capital structure has also to be kept in mind.

Thank you.