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ICAI releases Tax Audit Checklist

CA - ICAI- Tax Audit - checklist - Direct Taxes Committee - Taxation Audit - Quality Review Board - ICAI - Taxscan

The Direct Taxes Committee & Taxation Audit Quality Review Board of ICAI brought out a Tax Audit checklist Under Section 44AB Of The Income Tax Act, 1961.

The audit checklist is the result of the joint effort of the Direct Taxes Committee and the Taxation Audit Quality Review Board of ICAI, which is designed to assist the members in enhancing the quality of tax audit under section 44AB of the Income tax Act, 1961.

The checklist is only recommendatory in nature.

This checklist has been broadly based on the text of the Guidance Note on Tax Audit under section 44AB of the Income tax Act, 1961 or Implementation Guide with respect to Notification No. 33/2018 dated July 20, 2018 effective from August 20, 2018 or Technical Guide on Income Computation and Disclosure Standards. The detailed guidance given in these publications of the Direct Taxes Committee of ICAI should be duly referred while conducting the tax audit.

The publications may be revised from time to time depending on the changes in the Act/ Tax Audit Report Format.

In case, there is any conflict between the text of this publications of ICAI and this document, the text mentioned in publications Guidance Note on Tax Audit under section 44AB of the Income tax Act, 1961 or Implementation Guide with respect to Notification No. 33/2018 dated 20.7.2018 effective from August 20, 2018 or Technical Guide on Income Computation and Disclosure Standards shall prevail.

While giving the tax audit report the tax auditor will have to use his professional skill and expertise and apply such audit tests as the circumstances of the case may require, considering the contents of the audit report.

The tax Auditor will have to conduct the audit by applying the generally accepted auditing procedures which are applicable for any other audit. He is advised to refer to the Standards on Auditing (SAs) as may be relevant, issued by ICAI.

In case there is any conflict between the texts of the Standards on Auditing (SAs) issued by ICAI and this document, the text mentioned in SAs issued by ICAI shall prevail.

Where the auditor issues Form No. 3CB, as the audit of financial statements is being done under section 44AB of the Income tax Act, 1961, the auditor should in relation to audit of the financial statements ensure compliance of Accounting Standards issued by ICAI,  Standards on Auditing and Framework for presentation of Financial Statements issued by ICAI.

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