yoyo me (Student CA IPC / IPCC) (44 Points)
28 August 2013hello friends
I want to know that whether an audit of a branch or branches of a company is comes under the ceiling provided under the co. act or ICA I regulations??????????.......
If yes then whats the rule for that
PLEASE REPLY FAST..............................................
Deepak Gupta
(CA Student)
(15922 Points)
Replied 28 August 2013
| Originally posted by : yoyo me | ||
 |
hello friends I want to know that whether an audit of a branch or branches of a company is comes under the ceiling provided under the co. act or ICA I regulations??????????....... If yes then whats the rule for that PLEASE REPLY FAST.............................................. |
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Branch audit of Indian companies and audit of Indian business accounts of foreign companies are to be excluded for ceiling on appointment as auditor. [Exemption u/s 224(1B) of Companies Act]
.
Also as per Para 9.26 of Guidance Note on Tax Audit issued by ICAI (2013), audit of the head office and branch offices concerned shall be regarded as one tax audit assignment. Similarly, the audit of one or more branches of the same concern by one chartered accountant in practice shall be construed as only one tax audit assignment.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 28 August 2013
yoyo me
(Student CA IPC / IPCC)
(44 Points)
Replied 29 August 2013
but wide notification "No. 1-CA(7)/53/2001" audit of 1 or more branches of a company will be considered as 1 audit assignment. Please clarify this also.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 29 August 2013
Dear yoyo me,
as also said by mr. deepak in his last lines, take an example, you being a CA going for audit of a SBI, and being a joint auditor you were assigned with task of 50-odd branches in south india, then, all those branches' audit doesn't mean that you had exceeded the limit of no. of audit, it is just 1 audit, though of different branches all over india of the same bank/company etc. It is applied in all audits, whether stat. audit, tax audit etc...
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
CAclubindia
