Tax Audit

Saini.,

Only after the statutory audit report has been given, the tax auditor can give his report.. so the question of again conducting audit is eliminated..

He should consider the matters specified in the statuory report which affects his areas of audit and reporting items..... He should be careful in performing his audit in case of a staturoy report other than an unqualified report..

when an statutory auditor and a tax auditor are different, the tax auditor has to always checks those items on which he has to report in the tax audit.

he can take some liberty when the statutory auditor has given a clean report otherwise he has to use his level of knowledge and awareness and check all the points on which he has to report in form 3cd

Hi,

Tax auditor has to give his report in form 3CA/3CB and 3CD is a annexure to this.

In form 3CA/3CB auditor certifies that:

1. he has obtained all the informations and explanation necessary for the purpose of audit

2. Accounts gives a "TRUE AND FAIR" view of the statement of affairs and profit/loss

Now, i am confused about it because how can a auditor certifies above two without conducting the audit completely......

thanx......

Sini., In case of 3CA the words used is

" I/we annex hereto a copy of my/our/their audit report dated ___________________ along with a copy each of -
(a) the audited * profit and loss account/income and expenditure account for the year ended on 31st March,_____________;
(b) the audited balance sheet as at 31st March, _________; and..........."

Here if the statutory audit was done by some other auditor other than a tax auditor then the tax auditor just attaches the Balance sheet and P& L which was audited by the statutory auditor only. He does not certify the financial statements.He only certifies the following

"In my/our opinion and to the best of my/our information and according to explanations given to me/us, the particulars given in the said Form No. 3CD and the Annexure thereto are true and correct."

In case of 3CB (used where the assessee is not required to get audit under any other law except IT Act) the words used are

"I/We certify that the balance sheet and the profit and loss account/income and expenditure account are in agreement with the books of account maintained at the head office at_________ and ____ branches.
3. (a)  I/We report the following observations/comments/discrepancies/inconsistencies; if any:
____"

Here the only audit done is tax audit by the tax auditor  and he alone certifies the P& L, B/S ...

Hope yu re clear now...

ya its clear now..... thanx a lot