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Tax Audit

Statutory Audit 833 views 6 replies

Can a tax audit be done when the client is not ready to provide sale/purchase and expenses bills. They will only provide Day Book and Ledger for the audit purpose only.

Replies (6)

No, then u cannot issue tax audit report..limitation on ur scope...

Hi,

Interesting question.

I want to know the reason why client is not ready to provide bills, etc

I dont think any auditor will be in a position to certify the requirements of tax audit in the absence of verification of bills, etc

 

Originally posted by : Amir

Hi,

Interesting question.

I want to know the reason why client is not ready to provide bills, etc

I dont think any auditor will be in a position to certify the requirements of tax audit in the absence of verification of bills, etc

 

The client is saying that their previous auditor never asked for the bills.

Oh great...!

How innocent that client is............:)

Jokes apart, just make ur client understand that it is necessary & without it the report can not be issued....

My advice will be to make ur boss/partner talk to him once....

 

Thanks Amir Sir.

Some clients also come in our office for certification of Provisional Trading, P& L A/c and Balance Sheet as on 31st March. They need that to provide to their bankers. Should a CA certifies these.

Yes it can be done subject to the following -

1) Guidance Note on "Audit Reports & Certificates for special purpose"

2) SA 3400 (AAS-35) - EXAMINATION OF PROSPECTIVE FINANCIAL INFORMATION


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