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Ceiling of audit

ANIL KR AGRAWAL (Partner) (28 Points)

19 December 2012

Dear friends

I have a query regarding ceiling of audit.

A form A & B & Co has 2 partners. Can one p[artner do 80 tax audits and other 10.

And can one partner do 50 co audit and other only 10.

Is it allowed under the present provision.

CA Anil K Agrawal

9431881950

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4 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 19 December 2012

in case of a firm, each partner is said to be appointed as the auditor in the firm's name on behalf of the firm. It is not the firm but the auditors of the firm who can undertake Tax Audits. So the ceiling is in respect of each of the partner's and not for the firm in aggregrate. So each parnter can take only 45 tax audits only on behalf of teh firm .

section 224(IB) clearly states that each in case of a partner the number of company audits would be 30 for each partner. So total number of partners multiplied by 30 in case of each partner and not collectively for teh firm would be maximum ceiling that the parnters would be taking the audits.

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@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 19 December 2012

Originally posted by : Giridhar S Karandikar
	in case of a firm, each partner is said to be appointed as the auditor in the firm's name on behalf of the firm. It is not the firm but the auditors of the firm who can undertake Tax Audits. So the ceiling is in respect of each of the partner's and not for the firm in aggregrate. So each parnter can take only 45 tax audits only on behalf of teh firm . section 224(IB) clearly states that each in case of a partner the number of company audits would be 30 for each partner. So total number of partners multiplied by 30 in case of each partner and not collectively for teh firm would be maximum ceiling that the parnters would be taking the audits.

CA Kedar Sakhardande (Proprietor) (942 Points)
Replied 21 December 2012

It is reduced to 20 out of which not more than 10 should be public Co (for individuals) as per Ammended act

mrinal (mrinal) (228 Points)
Replied 24 December 2012

Originally posted by : CA Kedar Sakhardande
	It is reduced to 20 out of which not more than 10 should be public Co (for individuals) as per Ammended act

He can do