Chartered Accountants must check ICAI clarification before accepting GST Audit Assignment

Contributed by CS Payal Kataria

Before accepting ST Audit Assignment, Chartered Accountant must read below mentioned clarification issued by ICAI. Under certain situations CA is not permitted to do GST Audit if providing certain specific services to the same client.  Below is list issued by ICAI to clarify as to whether Members doing the GST Audit are permitted to provide the below listed services:

Nature of Service being provided by Chartered Accountant Whether members doing GST Audit are permitted/not Reference to Standard /Council decision
1 Accounting without uploading of returns Not permitted Guidance  Note  on  the  independence of Auditors states as under:- “Members  are  not  permitted  to  write the  books  of  account  of  their  auditee clients.”
2 Accounting with uploading of returns Not permitted Same as above
3 Accounting with uploading           and verification Not permitted Same as above
4 Concurrent audit services Not permitted ESB  at  its 106th  meeting decided  that Concurrent  audit  is  a  kind  of  internal
5 Internal audit service Not permitted As      per      announcement      dated. 27.9.2018
6 Tax advisory services Permitted 107th   Meeting  of  ESB  on  08.04.2009 decided   that   both   statutory   auditor and Internal Auditor can engage in tax
advisory Services
7 Dispute  resolution  / representation services Permitted 107th       Meeting    of    ESB    held    on 08.04.2009 inter alia decided that Tax Representation, can be done by both,
internal auditor and statutory auditor
8 Tax audit services Permitted Both are statutory audits
9 Statutory audit services – Company Act, Co-operative
audit etc.
Permitted ESB   at   its   107th    Meeting   held   on 08.04.2009   decided   that   Tax   Audit can be done by Statutory auditor
10 Bar  on  one  partner vs. other Partner (If one  partner  of  the firm is not permitted to   do   GST   Audit then  whether  other partner  can  do  the
Bar   will   be   on   all partners in the firm.  

Source: ICAI website

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this writeup in the respective scenarios. While due care has been taken in preparing this writeup, the existence of mistakes and omissions herein is not ruled out. No part of this writeup should be distributed or copied (except for personal, non-commercial use) without our written permission.

Leave a Reply

Your email address will not be published.