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Can CA do Tax audits and Internal audits BOTH?

purvi (some) (240 Points)

10 June 2010

HELLO FRIENDS!!! I WOULD LIKE TO KNOW SOMETHING INTERESTING

RECENTLY I WAS SURFING WEB AND I CAME ACCROSS THIS NAME -

"THE INSTITUTE OF CERTIFIED INTERNAL AUDITORS!"

HEY EXPERTS OUT THERE - PLEASE SHARE YOUR KNOWLEDGE AND TELL ME...

1) WHO IS A CIA?

2) IS A CHARTERED ACCOUNTANT, A CIA BY DEFAULT? IF NO CAN HE GIVE THIS CERTIFICATION EXAM?

3) IF ANS TO ABOVE IS NO, THEN PLS TELL ME - ARE THE BIG FOUR FIRMS ONLY INTERNAL AUDITORS OR THEY ALSO CONDUCT EXTERNAL AUDITS?

4) DO THE BIG 4 FIRMS CONDUCT TAX AUDITS AND STATUTORY AUDITS? IF NO WHAT IS THE REASON PLS TELL ME????

THANKING YOU AND REGARDS IN ADVANCE... PLS PLS PLS HELP ME TO LEARN ABOUT THESE AND SHARE YOUR KNOWLEDGE... IT WILL BE HIGHLY APPRECIATED...

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9 Replies

CA Shiv (Business Controller) (2987 Points)
Replied 10 June 2010

CIA is a certified course normally non CAs do to grab a job in CA frim or in company.

CA dont have to take that certificate. IF you get it than its your extra credit and expertise.

Big 4 does what a normal practicing CA does.

And ca can do tax audits, internal audits, statutry audits and much more...

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purvi (some) (240 Points)
Replied 10 June 2010

Originally posted by : CA Shivang
	CIA is a certified course normally non CAs do to grab a job in CA frim or in company. CA dont have to take that certificate. IF you get it than its your extra credit and expertise. Big 4 does what a normal practicing CA does. And ca can do tax audits, internal audits, statutry audits and much more...

thank you very much sir... i appreciate your reply....

please also tell me can a CA do internal audit for a firm whose tax audit is also under him only????

CA Shiv (Business Controller) (2987 Points)
Replied 10 June 2010

Yes absolutely... CA can do it...

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Shudhanshu Agrawal (Business) (2570 Points)
Replied 10 June 2010

Yes a CA can do an internal audit as well as tax audit. Tax audit is required as per Section 44AB of Income Tax Act, 1961 whereas internal audit is not required by any law. Internal audit is conducted for the management.

Even Statutory auditor can do tax audit of the same company.

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SIVASIVA (FCA, Future CA) (4935 Points)
Replied 10 June 2010

i dit for one of our client Internal Audit and Tax Audit

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Nitin Grover (CS) (1228 Points)
Replied 10 June 2010

Dear Friend

their is not any law or provision to held internal audit only from CA or CIA. Any person have good knowledge of it can do Internal Audit.

Generally Firms approach CA's because of its main working of CA also and Big Companies need it. So they approach CA.

If u r graduate and have good knowledge u can also conduct Internal Auditing.

Regards

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Neha Popat (CA in Practice- Direct Taxation) (94 Points)
Replied 11 June 2010

A CA cannot be the Internal Auditor and the Tax Auditor of the same Company/Firm. This is as per the Council's Decision dated 12/12/2008 in the link :

https://www.icai.org/post.html?post_id=3787&c_id=219

Internal Auditor cannot be appointed as a Tax Auditor - (12-12-2008)

The Council in its 281st meeting held from 3rd October, 2008 to 5th October 2008 at New Delhi considered an issue arising from the Guidance Note on Tax audit under section 44AB of the Income-tax Act,1961 as to "Whether the internal auditor of an assessee, being an individual chartered accountant or a firm of chartered accountants can be appointed as his tax auditor".

The Council decided that an internal auditor of an assessee, whether working with the organisation or independently practising chartered accountant or a firm of chartered accountants, cannot be appointed as his tax auditor.

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