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Relative audit
Can a CA perform tax audit of relatives? Please clarify.
Replies (9)
I think Income Tax allows but ICAI dont allow. CA cannot express his opinion on the financial statements of the enterprise in which his relative have substantial interest untill he discloses such interest in his Audit Report.
That means audit can be performed subject to disclosure only.
Thanks divya...but it would be pleasure if i could get final solution to this practical question.
No CA cannot perform tax audit of direct relative
but now as per SA, CHARTERED ACCOUNTANT can't give opinion whether they disclose or not...
Pratik are you sure...I also had the same opinion but I am getting mix reply regarding this issue.
I think a CA can act as tax auditors for his relatives, there is no restriction for the same other than in case of company.
Lots of confussions and dilemmas regarding this topic..Please someone help to overcome this practical issue.
The Income Tax Act does not imposes any restriction an audit of relatives, but ICAI imposes certain restriction subject to some conditions..
Details regarding the same is on page no. 15.8 point no 7 in the attached file
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