Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Internal audit

Anisha Datta (155 Points)

26 September 2019

whether an internal auditor can
conduct tax audit in the same company? plz reply nyone

Reply
Follow
Share

4 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 26 September 2019

No... Internal auditor can't conduct Tax Audit in same Co.

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Adithya (udupi) (49 Points)
Replied 26 September 2019

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.

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.