18 February 2009
Clarification: For level II Enterprises, compliance with the mandatory.
Accounting Standard is must, Auditor while doing attest function must ensure that all the applicable accounting standard should be compiled in the presentation of general purpose financial statement of the enterprises.
Now, my quary is that, in case of Tax - Audit report issued u/s 44AB of income tax act 1961, Wheather member has to see that all the applicable accounting standard have compiled or not issued by ICAI.
Also, is there any professional misconduct in case member don\'t give due care with the compliance of Mandatory Accounting Standard in case of Level II Enterprises
18 February 2009
Tax Audit is an audit of books of accounts prescribed by the income tax act. You just have to comply AS-I and AS-II as prescribed by Sec.145 of income tax act.
03 March 2009
Tax audit is an independent audit u/s 44AB. Accounting standards are not mandatory for firms, sole propreitors & others who are not companies. However tax audit becomes mandatory if they cross the required turnover limit. therefore, while doing tax audit, the auditor is only required to see compliance of AS-1 for accounting policies and AS-2 for inventories and no other accounting standard.
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