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Sowmya.S.Balan (Paid Assistant) (749 Points)

24 August 2013

Dears

WHETHER A CA IN PRACTICE CAN SIGN AUDITED STATEMENTS OF A BUSINESS HAVING TURNOVER LESS THAN TAX AUDI T LIMIT? HE IS ALSO NOT COVERED FOR TAX AUDIT IF CONSIDERED UNDER SEC 44 AD. THIS AUDITED STATEMENTS ARE REQUIRED TO GET A BANK LOAN. Please give me an answer. Its very urgent

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8 Replies

Kunal Mittal (FINANCE OFFICER) (580 Points)
Replied 24 August 2013

The tax audit is incomplete without the ca's sign on the audit report and balance sheets.

CA Naresh Pareek (Practicing Chartered Accountant) (170 Points)
Replied 24 August 2013

Dear sowmya

Your query is not clear. You have asked "whether audited statements can be signed by a CA in practice". If it is already audited then why should a different or same CA again sign on it ?????

MidhuN (CA Final Student) (75 Points)
Replied 24 August 2013

Originally posted by : Sowmya.S.Balan
	Dears WHETHER A CA IN PRACTICE CAN SIGN AUDITED STATEMENTS OF A BUSINESS HAVING TURNOVER LESS THAN TAX AUDI T LIMIT? HE IS ALSO NOT COVERED FOR TAX AUDIT IF CONSIDERED UNDER SEC 44 AD. THIS AUDITED STATEMENTS ARE REQUIRED TO GET A BANK LOAN. Please give me an answer. Its very urgent

Did you mean if the turnover is below tax audit limit (1 Crore ) can a Chartered accountant do Tax Audit on your business and issue an audit report u/s 44AB?

A chartered accountant can not issue an audit report unless he has not conducted an audit at all. He can not give an audit report only for taking a bank loan without conducting an audit.

In your case may be the Chartered accountant is of an opinion that you are below the tax audit limit and hence your accounts are not required to be audited as per the Income Tax act. What he said is correct. If your accounts are not required to be audited under any law your bank can not demand an audit report for issuing a bank loan. Just furnish them your finalised Balance sheet and relevant details. That will suffice.

CA Bhavin Venugopal (CHARTERED ACCOUNTANT) (681 Points)
Replied 24 August 2013

Question nt clear..

C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.) (1823 Points)
Replied 24 August 2013

If bank required your financial statement should be audited by C.A. then you have to get audited your financial statement by C.A. from banks perspective and not any other statute. Format of audit report and area of financial statement to be audited preciously should be decided by bank.