Hi
Can an internal auditor of a company be appointed as its Tax Auditor.
please clarify
work is worship (Service) (2728 Points)
01 October 2012Hi
Can an internal auditor of a company be appointed as its Tax Auditor.
please clarify
Deepak Gupta
(CA Student)
(15922 Points)
Replied 01 October 2012
| Originally posted by : work is worship | ||
 |
Hi Can an internal auditor of a company be appointed as its Tax Auditor. please clarify |
 |
The Council in its 281st meeting held from 3rd to 5th October, 2008 decided that an internal auditor of an assessee, whether working with the organization or an independently practicing Chartered Accountant being an individual chartered accountants or a firm of chartered accountants, could not be appointed as his tax auditor.
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The said decision came into effect from December 12, 2008. As per the decision an internal auditor cannot carryout tax audit on or after December 12, 2008. Subsequently representations have been received pointing out the hardship being caused by the abovesaid decision in respect of those internal auditors who have been appointed as tax auditors for the financial 2008-09 on or before December 12, 2008. The Council considering this hardship has decided that the decision taken by the Council at its meeting between 3rd to 5th October, 2008 shall be applicable to all appointments as tax auditor made on or after December 12, 2008 and accordingly those internal auditors whose appointment have been made as tax auditors before December 12, 2008, can carry out the tax audit of the financial year ending on March 31, 2009, i.e., Assessment Year 2009-2010 only.
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https://www.icai.org/post.html?post_id=4157
work is worship
(Service)
(2728 Points)
Replied 02 October 2012
Thanks Deepak for your detailed explanation.
CAclubindia
