ICAI notifies norms for 60 tax audits in a year for chartered accountants

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The Institute of Chartered Accountants of India (ICAI), which has over 4 lakh members, has notified norms limiting the number of individual tax audits and these will come into effect from April 1 next year.

This limit of sixty shall be the aggregate limit of all tax audits signed by a member (chartered accountant) individually and as a partner of a firm/firms. Further, a partner of a company cannot sign any tax audit report on behalf of another partner.

Some relaxation will also be given within this limit.

ICAI President Charanjot Singh Nanda on Wednesday said fixing a limit of 60 tax audits per year by a chartered accountant will help strengthen the regulatory framework and focus on audits.

The move will strengthen the regulatory framework and help enhance focus of chartered accountants on tax audit, Nanda said at a press conference in the national capital on Wednesday. He said that norms in this regard have been notified and these are mandatory. He said that auditing is the specialisation of chartered accountants.

For example, if an audit company has four partners, each partner can also audit the other partner. While an audit company can conduct up to 240 audits, a partner can now conduct up to 60 audits individually.

Meanwhile, amid complaints of misrepresentation and forged signatures of chartered accountants, the ICAI has introduced the Unique Document Identification Number (UDIN) system. UDIN is a unique number issued for every document certified or attested by a practicing Chartered Accountant.

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